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Service Charges – when is a cost a cost?

September 3, 2013 By Benchmark

A landlord cannot recover service charges incurred more than 18 months before they are demanded, unless a section 20B notice is served.

The case of Brent London Borough Council v Shulem B Association Ltd decided that the section 20B notice must refer to costs already incurred and not costs to be incurred. However this left the question open as to when costs were incurred; when the liability arose, or when the invoice was rendered, or when payment was made.

The recent case of OM Property Management Limited v Burr allowed the Court of Appeal to decide when is a cost "incurred" in order to determine whether the landlord may recover it against the tenant.

This case concerned the supply of gas to heat a communal swimming pool. The tenant was billed for the gas after it had been supplied although before the gas supplier had rendered the bill. The Court of Appeal decided that the landlord’s costs were incurred when it was invoiced and not before. Therefore, although the landlord may be liable for the costs, they cannot seek to recover these from the tenant until the costs have been demanded from the supplier.

At Benchmark Solicitors LLP we can assist in all landlord and tenant matters including matters concerning the recovery of service charges and major works charges.

Paul Rogers – Solicitor, 3rd September 2013

Filed Under: Dispute Resolution, Property Disputes Tagged With: section 20b

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Property Solicitors Central London

Benchmark Solicitors LLP is a Central London based law firm specialising exclusively in land and property related disputes.  Our team of experienced property dispute lawyers are based in Temple just moments from the Royal Courts of Justice.

Our Expertise

Our solicitors only specialise in civil dispute resolution (commonly referred to as litigation). Our team have particular expertise in claims involving property repossessions and tenant evictions, landlord and tenant disputes, bankruptcy and the family home and investment property (including foreign property investments).  Given our proximity to the Royal Courts of Justice and Central London County Court we are able to offer competitive rates for agency advocacy services.

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Location: Temple, near leading courts.

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We offer a fixed fee no obligation sixty minute meeting for us to provide you with initial advice and direction. Contact us via the contact form, email address or telephone for more information as to how we can help you begin to resolve your dispute today.

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