A recent High Court decision appears to sound another blow for landlords. Siobhan Jones reports
Residential service charges (and their recovery by landlords) are subject to extensive statutory regulation. In particular, ss 18 to 30 of the Landlord and Tenant Act 1985 (LTA 1985), as amended principally by the Commonhold and Leasehold Reform Act 2002 (CLRA 2002), operate to limit the recovery of the cost of certain works (qualifying works) via the service charge unless the landlord complies with a prescribed consultation process. In summary, the landlord must consult with tenants if the cost of qualifying works to the building ultimately payable by each tenant, will exceed £250.
Where qualifying works are anticipated the landlord must instigate the (relatively demanding) consultation process set out at ss 20 to 20ZA of LTA 1985. This involves the following steps:
- Giving notice of intention to the individual tenants (and any tenants’ association) outlining the proposed qualifying works, why they are necessary and inviting written observations.
- Considering any written observations received.
- Seeking estimates for the proposed qualifying works, including estimates from any contractors nominated by the
