Service Charge
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Landlord and Tenant Act 1987 and unfair service charges?
In Morgan v Fletcher, six leaseholders sought to adjust service charge clauses deemed unsatisfactory under the Landlord and Tenant Act 1987. The LVT initially modified leases to ensure equity after service charges exceeded 100% of landlord expenditures. However, the court upheld an appeal, stating that the law doesn’t address disproportionate charges, emphasizing caution in drafting…
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Landlord stung by failure to comply with service charge requirements
In Daejan Investments Ltd v Benson [2009], a landlord’s failure to follow service charge consultation laws for £270,000 in major works led to a dispute. The Leasehold Valuation Tribunal limited leaseholders’ charges to £250 each, with the Upper Tribunal emphasizing compliance. Non-compliance can significantly decrease landlords’ recoverable amounts.