Leasehold Advice On Charges

If you are a leaseholder, you should have been given a document setting out your service charges

, and it may also list the share of the total charge for the block and dates that payments need to be made.

Service charges must be reasonable and if your freeholder must operates a reserve fund, this must also be reasonable. All such money must be held on whats called a Statutory Trust so that it is used only for the property in question, and not mixed with the freeholders money. This means that if the freeholder goes into administration, these funds are protected. The freeholder has 18 months to demand any service charge costs that are incurred.

You may have to pay towards services even if you dont utilise them, for example maintenance of stairs when you live on a lower floor.

As a leaseholder, you do have rights when it comes to service charges and its important you are aware of what they are in order to protect your investment. You have the right to:

Be consulted on all major works to your property or block.

Challenge the standard of work carried out.

Challenge the validity of any service charges incurred.

View a copy of the service charge costs.

Inspect all accounts including quotes, receipts and other paperwork relating to service charges.

The landlord must keep a summary for the previous service charge accounting year, available for every leaseholder to view, and this should contain details of service charges and the costs relating to them.

If there are more than four properties covered by the leasehold service charge for example in a block of flats a qualified and independent accountant will generally need to certify that they service charges are fair. Leaseholders should remember that within six months of receiving the charges summary, they have the right to request (in writing) the accounts including receipts and supporting documents. A secretary of the tenants association can also request this.

For more information about Bernie Wales please visit at http://www.berniewales.co.uk.

by: Bernie Wales

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