Service charge disputes

Service charge disputes can arise from disagreements over the calculation, allocation, or reasonableness of charges.

Moore Barlow’s solicitors offer expert advice and representation to resolve these disputes effectively, ensuring that service charges are fair and transparent. We can assist you in understanding your rights and obligations under lease agreements.

Our team conducts thorough reviews of the service charge machinery and and lease terms, negotiating resolutions that reflect the true costs and benefits of the services provided. If necessary, we are prepared to take legal action to protect your interests. Trust Moore Barlow to handle your service charge disputes with professionalism and expertise.

What are service charge disputes?

Service charge disputes involve disagreements between landlords and tenants over the costs associated with services provided to a property, such as maintenance and repairs including major works projects and appointments under qualifying long term agreements. Resolving these disputes requires clear communication, transparent accounting, and sometimes legal intervention.

Can you dispute a service charge?

Yes, you can dispute a service charge if you believe it is unreasonable, inaccurately calculated, or not in accordance with the terms of your agreement. These disputes can be resolved through direct negotiation with the managing agent or property owner, but if necessary, formal legal avenues such as mediation or proceedings can be pursued to reach a resolution.

What are service charge disputes?

Service charge disputes arise when property owners, leaseholders, or tenants disagree on the calculation, allocation, or fairness of service charges for their property. These disputes may occur in residential, commercial, or mixed-use properties and often require a detailed examination of the terms of the lease or ownership agreement and an understanding of the structure of service charge accounting, to resolve. Legal clarification is frequently needed to determine whether the charges being imposed are justified and compliant with the agreement.

Common issues in service charge disputes

Service charge disputes generally occur due to several recurring issues:

• Calculation discrepancies: Errors in calculating service charges can lead to disagreements, especially if those responsible for paying believe they are being overcharged or billed incorrectly.
• Lack of transparency: When property managers or landlords do not provide clear, itemised statements of the service charges, it can lead to suspicion and disputes from those expected to pay.
• Questionable charges: Disputes often arise when charges are perceived as excessive or unrelated to the services provided, prompting challenges to the legitimacy of the fees.

Addressing these disputes promptly and with professional legal assistance is crucial, as they can otherwise become time-consuming and costly.

Do service charges have to be reasonable?

Yes, service charges must be reasonable, whether they apply to residential, commercial, or mixed-use properties. The law requires that service charges reflect the actual costs incurred for the services provided and that they are fair. Tenants, leaseholders, or property owners have the right to challenge charges they believe are excessive or unjustified.

How to challenge a service charge?

To challenge a service charge, start by carefully reviewing your lease or ownership agreement to understand the specific terms regarding service charges. The agreement will outline which charges are permissible, how they should be calculated, and under what circumstances they can be applied. Understanding these details is essential in determining whether the charges being levied are in line with the terms you agreed upon.

After reviewing the agreement, request a detailed breakdown of the service charges from your landlord or property manager. This breakdown should provide an itemised list of expenses and how each cost was calculated. Compare these charges with previous years’ charges to identify any significant increases or discrepancies. If any charges appear unreasonable, unclear, or unrelated to the services provided, raise these concerns directly with the landlord or managing agent, seeking clarification or an adjustment as needed. Should the issue remain unresolved, it may be beneficial to consult a solicitor experienced in property law. A solicitor can assist in negotiating with the landlord or, if necessary, take formal action to resolve the dispute.