Residential service charge consultation: who knows what the future holds
Russell-Cooke has highlighted a recent court case that could cause turmoil for those who manage residential service charge property
It is well known that landlords of residential properties are required to consult with lessees prior to committing to works where expenditure would result in any lessee paying more than £250 and the common understanding was that low cost, low key works did not require prior consultation. In an attempt to avoid what was sometimes perceived as being the tiresome, time consuming and costly exercise of consulting, landlords would sometimes split the cost into separate projects, each of which would be low enough not to trigger the consultation requirements. However, in the case of Phillips v Francis, it was decided that works should not be split, but treated collectively over the service charge year. However the small print of the decision needs to be examined……………
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