Kavita Bharti, Legal Adviser advises how LEASE can help with lifts, lighting and heating.
Service charges are payments by the leaseholder to the landlord for all the services the landlord provides. These will include maintenance and repairs, insurance of the building and, in some cases, provision of central heating, lifts, porterage, estate staff, lighting and cleaning of common areas etc. Usually the charges will also include the costs of management, either by the landlord or by a professional managing agent.
Heating / hot water
I’m having problems with the supply from the communal hot water/ heating system in my building. What can I do?
Usually your landlord will be responsible for repairing and maintaining the communal hot water/ heating system where one is provided. The lease may require the landlord to provide a working communal hot water/ heating system or it may allow them to choose whether or not to provide the service.
Download a template for a chasing letter to repair – action required by landlord
If the lease requires the landlord to provide a working communal hot water/ heating system you may be able to take legal action through the County Court against them if they fail to do so. Where relevant you can seek an injunction, order for specific performance and/or damages. You can also seek to recover your costs.
Depending on the terms of your lease you may have an option of disconnecting from the communal system with the landlord’s consent and making your own arrangements. Please note that you could still be required to contribute to the cost of repairing and maintaining the communal system.
You may require the services of a solicitor or a surveyor.
Management: Car park perils
David L owns a flat in Enfield, with a share of the freehold, and is a director of the residents’ association. He has received advice several times from LEASE, going back to 2010. His latest enquiry was about expanding the car parking area – Mr L was concerned that if there was an accident in the car park the residents’ association would be liable.
A LEASE adviser responded by email, saying the association has a “duty of care to those people visiting the property. A duty of care involves taking all reasonable precautions to ensure visitors to the building are reasonably safe (e.g. making sure a light by a dark stairwell is in working order). If there was a freak accident, I cannot see that that duty would have been breached, so that the company would not be liable. As far as wording goes, something along the lines of ‘please drive slowly and carefully when using the parking area, all persons using this parking area do so at their own risk’ would be sufficient.”
Mr L said, “Life would be much harder and more complicated without the marvellous and easy-to-use services provided by LEASE. Thank you for the facility.”
Tribunal decision: Interpreting a lease
The Upper Tribunal (Lands Chamber) ruled on an appeal by a management company (Solarbeta Management Company Ltd v Akindele) regarding what can be recovered under service charge provisions.
The case involves clauses in a lease which are very broad and open to interpretation regarding what fees or costs can be recovered through service charges. The defendant had argued successfully in the lower tribunal that they should not have to contribute towards the upkeep of services (in this instance a lift) not specified in the lease and to which their flat had no access and therefore received no benefit. The Upper Tribunal decided that the lease was non specific about which charges could be recovered and that the management company had discretion to recover costs for works it reasonably considered necessary or expedient for the use and occupation of the flats. Accordingly it would not be unreasonable for a management company to conclude that it was “necessary or expedient” to maintain the lift. It therefore overruled the First-tier Tribunal.
The Tribunal also agreed with the appellant that where a lease permits a lessee-owned management company to employ a firm of managing agents, the company was able to recover through the service charge the directors’ costs and expenses associated with running the Estate.
Service charges challenged at Tribunal – £11k reimbursed
Chris T owns a flat in Horley in Surrey. He got advice from LEASE that helped him reach a good outcome. He shares his story below.
“My landlord issued a Service Charge Actual (SCA) in which the charge for “Communal Electric Bill” (CEB) was £8000. As the estimate for this (annual) CEB was £800, I took action. I own a leasehold flat in a block of 18 flats. The CEB is for internal and external lights to three 3-storey stairwells, and to lights at the ends of the block. Inspection of the invoices showed that the meters in two stairwells had been regularly read and averaged £275 per stairwell. The remaining £7450 for my block comprised estimates varying from £24 to £552 stretching back to the last (and only) reading – over 3 years before the start of the SCA. “Citizen’s Advice” examined the lease and noted that costs have to be “reasonable”. They recommended contacting you. I received great advice about the 18 month rule.
I applied (Mar 2017) to the 1st Tier Tribunal Court and was advised that a “paper decision” was scheduled. Just before that was due (Aug 2017) the landlord agreed to re-imburse £11,500 in the latest SCA. The Court’s Consent Order supported this, and also said that my court fee be paid by the landlord, and that the landlord’s legal fees can not be charged back to the block – all enforceable in the County Court.
I spent £125 on paperwork (4x100pp bundles) and took 130 hours. I was aware that these costs were to be born by me. I thank the internet – and my partner – for help to go it alone (I could not afford legal fees).”
If you would like to discuss these issues in more detail, please get in touch with LEASE here or on 020 7832 2500.
