Information regarding percentage service charge paid by other leaseholders

[Guest]

Thanks in advance for any information.

I would like to get from my landlord information on the percentage service chage paid by each unit within the block that I own a lease. I would also like to know how this percentage is calculated.

Is there a statutory provision for demanding this infomation, and if so, what is it?

If there is no statutory provision, and the landlord will not comply, how does one get the information?

Thanks

[typonaut]

Is it that difficult a question?

[des8]

Question is not difficult, but finding the answer is, otherwise why ask the question?
You might find sections 4.3 &4.4 of this site useful:*https://www.lease-advice.org/advice-...-other-issues/

[typonaut]

I read that prior to asking the question, but it wasn't really clear to me that this was the method to use. I suppose you have to read the provisions in a wide mannner, ie that the contributions of other leaseholders are part of the accounts.

[des8]

It might be useful to know why you want that information

[typonaut]

I want to be sure that the service charges for the block are distributed correctly amongst leaseholders, and that all those I expect to be contributing are contributing.

[des8]

Now I am not convinced that the landlord has to release the info you want, and even if he does I doubt you can do anything about* what you possibly think is an unfair or disproportionate distribution
I suspect that you believe that for distribution to be correct (by that do you mean fair?) each leaseholder pays a proportionate percentage.
Your rights and obligations* are governed by the wording of the lease. If the lease says you pay 20% of the service charge that is the share you have to pay even though e,g, your flat occupies only 5% of the building.

Sections 35(2)(f) and s. 35(4) of the Landlord and Tenant Act 1987*provide that the First TierTribunal (Property Chamber) (FTT) can re-calculate the shares of the expenditure due from each leaseholder only if the aggregate of the services charges does not add up to 100%. If the service charges do add up to 100%, the Tribunal has no jurisdiction to vary on this ground even though the apportionment has been done in an unsatisfactory manner.

So, for example, in the case of*Morgan v Fletcher [2009] UKUT 186 (LC), the Upper Tribunal found that it had no jurisdiction to vary the leases where the landlord had reduced the service charge proportion payable in respect of its own flat and that of one other lessee to almost nil in order to bring the aggregate service charge down from 116% to 100%.*

You can read more in this article from which the above was taken:https://www.tanfieldchambers.co.uk/2...enant-act-1987

[typonaut]

While I can see where you are going, I'm not sure that's the correct interpretation. For example, what if units are added to the property, or expanded? If I start off in a five unit block paying 20%, and then they somehow add another ten units - even if my lease says 20% the facts on the ground have changed, I never contracted to subsidise other people.

In the instant example I know that the lease percentages have been changed (by the freeholder) on at least two occasions.

[des8]

So you are in a situation where the property has expanded, so the service charges have risen.
The number of leaseholders has increased but your percentage has not reduced.

If that is a correct summation of the situation, it would, IMO, be fair to assume either the* landlord was obtaining more than 100% of service charges, or that you were paying more than was reasonable.

To find out I think you need to invoke Landlord and Tenant Act 1985
Section 21 Service charge information
*(2)The regulations must, subject to any exceptions provided for in the regulations, require the landlord to provide information about—
(a)the service charges of the tenant,
(b)any associated service charges, and
(c)relevant costs relating to service charges falling within paragraph (a) or (b).

And*
(10)In this section—
...............

• “associated service charges”, in relation to a tenant by whom a contribution to relevant costs is payable as a service charge, means service charges of other tenants so far as relating to the same costs.]

*

[typonaut]

Thanks, now I have something to bite with.

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