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Service Charges Disputes

In properties where the landlord retains an obligation to repair and maintain parts of the building or estate, the costs will be recovered from tenants via a service charge. The correct interpretation of service charge provisions contained within the lease is essential to ensure that the tenants are charged the correct sums for works that are properly recoverable.

Landlords

If those who are project managing repair and refurbishment works on behalf of landlords are not familiar with service charge arrangements, works may be undertaken in the incorrect belief that costs can be recovered from tenants. This may lead to dispute and a potential unexpected shortfall in recovered expenditure. It is essential that works undertaken by landlords are managed by a surveyor who is not only a proficient project manager, but also has a good understanding of the construction and interpretation of service charge provisions.

bspm service:

  • In addition to project management services included in 'Repair & Refurbishment'.
  • Review service charge provisions and advise in respect of intended works.

Basis of Fees

No additional fees to those included within 'Repair & Refurbishment'
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Tenants

Where landlords are intending to carry out service charge works it is advisable for tenants to be properly advised prior to commencement when the property can be viewed beforehand and questions can be raised with the landlord in respect of the extent, cost and recovery and to agree the management of works in order to minimise disruption to the tenants.

bspm service:

  • Review service charge provisions and advise in respect of landlord's works.
  • Liaison with client's legal advisors where necessary.
  • Negotiation with Landlord's surveyor to agree scope, management and recovery.

Basis of Fees

Fees are usually charged on a time taken basis.

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"Management or monitoring landlord’s works to ensure correct recovery within service charge provisions"
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