All too often the answer to this question is yes. Most occupiers never question their service charges. They should.
It is important to have a clear understanding of the respective legal responsibilities between occupiers and
owners. Complex and onerous lease obligations combined with recent case law on such matters, as well as the stringent requirements of the RICS, make this a minefield for the ill-advised.
Our specialist Service Charge Consultancy team is made up of industry-acknowledged experts who are highly experienced senior professionals with extensive technical knowledge and expertise.
Our range of services includes:
Advising on all aspects of Service Charges
The best way to avoid any form of dispute is to ensure that service charges are set up correctly in the first place. Both the landlord and tenant will know where they stand, relationships will not be put under strain and both parties will be clear about the precise cost/income expectations.
Specifically, we cover:
- Advice on lease interpretation, litigation and support through conveyancing.
- Strategic advice on new mixed use developments and refurbishment schemes
- Technical due diligence support for all Clients, both landlord and tenant
- Advice on service charge expenditure / budgets / sinking funds and apportionments
- Advice on the recoverability of costs of major repairs and replacements
- Advice on the interpretation and implementation of the RICS Service Charge Code of Practice
Reviewing to protect the occupier’s interests
Few tenants will have the time, expertise or knowledge that will allow them to query the landlord’s demands in an effective manner. By undertaking a comprehensive review/audit of the service charges allows for a thorough analysis of the landlord’s monetary demands and whether these fall within the contractual obligations of the tenant’s lease.
This will ensure:
- The service charge is free from error
- Any costs are correctly recovered within lease terms
- The apportionment of the total costs has been properly and reasonably calculated throughout the property/ development
- Any other issues are identified
Where errors are detected, we will negotiate reductions, refunds or credits of any inappropriate or unreasonable costs.
Equally, if there are no errors, we will confirm this to you to allow you to comply and progress with your lease terms.
Resolving disputes and dealing with litigation
As part of the team we have an appointed member of the RICS Presidents’ Panel of Independent Service Charge Experts. Alexandra Finlayson’s expertise and 15 years experience allow her to identify issues and where problems may arise, whilst giving clients confidence that any disputes arising from their service charge obligations and liabilities will be resolved in the most appropriate, cost effective and timely manner. Alexandra can also provide expert witness advice.
To discuss anything you have read in the above article, please contact our Service Charge Expert: Alexandra Finlayson
