Cordelia M owns a flat in a block of 60 in Camden. The freeholder is planning some major works, but Ms M does not think they need doing. She contacted LEASE to find out what she could do.
The LEASE adviser first explained the Section 20 process, and how it offers leaseholders a chance to comment on the proposed work. If the freeholder presses on with the work it, she can apply to the First-tier Tribunal (Property Chamber) to determine her liability to pay the costs incurred.
Service charges must be reasonable in amount and reasonably incurred.
Whether a cost is reasonably incurred requires consideration of two related questions. First, was the decision to incur the cost a reasonable one and second did the landlord take appropriate steps to test the market? To what extent if at all this was done is a question of fact in any particular case but there are certain general principles including there being no general requirement that the landlord obtain the lowest price in the market.
The adviser explained that in this case, evidence, such as a surveyor’s report, should be collected to support the leaseholders’ case.
Ms M said that LEASE had provided her with “a fantastic and knowledgeable service! The issue I consulted LEASE about is continuing but am armed now with good advice.”
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