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Service Charge Adjustment


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The Residential Management Agent looking after the development I live in has recently sent out a bill for service charge adjustment.

 

This is in respect of the year ending 2007 accounts, they have calculated that each resident was undercharged to the tune of £520 each.

 

My question is, while I realise that they are allowed to make adjustments once accounts have been audited, is there any time limit on this? Over a year seems a bit long.

 

Thanks

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The Residential Management Agent looking after the development I live in has recently sent out a bill for service charge adjustment.

 

This is in respect of the year ending 2007 accounts, they have calculated that each resident was undercharged to the tune of £520 each.

 

My question is, while I realise that they are allowed to make adjustments once accounts have been audited, is there any time limit on this? Over a year seems a bit long.

 

Thanks

 

The bill for a service charge has to be sent to you within 18 months of the costs being incurred, hope this helps.

 

You may wish to googlke for Landlord & Tenant Act 1985 and Commonhold & Leasehold reforms 2002.

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The bill for a service charge has to be sent to you within 18 months of the costs being incurred, hope this helps.

 

You may wish to googlke for Landlord & Tenant Act 1985 and Commonhold & Leasehold reforms 2002.

 

That does indeed help, thank you for the response.

 

I had looked through the 2 acts over the weekend, but I couldn't find any reference to the 18 month timeframe - you don't happen to know which section it is in do you?

 

Thanks again,

Gareth

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That does indeed help, thank you for the response.

 

I had looked through the 2 acts over the weekend, but I couldn't find any reference to the 18 month timeframe - you don't happen to know which section it is in do you?

 

Thanks again,

Gareth

 

 

From Landlord & Tenant Act 1985 section 20b

 

Limitation of service charges: time limit 20B on making demands

If any of the relevant costs taken into account in determining the amount of any service charge

were incurred more than 18 months before a demand for payment of the service charge is

served on the tenant, then (subject to subsection (2) ), the tenant shall not be liable to pay so

much of the service charge as reflects the costs so incurred.

(1)

Subsection (1) shall not apply if, within the period of 18 months beginning with the date when

the relevant costs in question were incurred, the tenant was notified in writing that those costs

had been incurred and that he would subsequently be required under the terms of his lease to

contribute to them by the payment of a service charge.

 

I think the above was amended recently so if the version you have is different that would be why.

Check out Lease Advisory Service site for lots of good info & help.

Andy

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