Sunday, July 15th, 2012 in Landlord, Managing Agent, News, Residential, Service Charge
The legal news from Out-Law.com points out that, according to a recent tribunal decision, residential service charges will not be recoverable if the address for service of notices contained in the demand letter is that of the landlord’s managing agent, rather than that of the landlord itself.
Read the full article here
Sunday, July 15th, 2012 in Landlord, Managing Agent, News, Residential, Service Charge
Carl Brown of Inside Housing notes that sector experts have warned that proposed new rules could lead to fewer service charges being covered by housing benefit. Draft regulations for the universal credit, expected to come before parliament in the autumn following a consultation, redefine which service charges are eligible to be covered. Currently regulations list 10 types of service charge which are not eligible. The new regulations turns this on its head and instead lists just three types of charges which are eligible. As a result of the change, lawyers and housing consultants warn that a host of service charges could no longer be covered by benefit. This would mean extra cost to tenants or landlords, or a reduction in services for tenants.
Read the full article here
Thursday, June 21st, 2012 in Landlord, Managing Agent, News, Residential, Service Charge
The Accounting Standards Board of the Institute of Chartered Accounts in England & Wales has issued an Information sheet setting out a proposed Urgent Issues Task Force Abstract ‘Residential Management Companies Financial Statements’. This is to assist residential management companies to determine whether they are acting as principal or agent when undertaking residential service transactions with third parties, and thereby determine which transactions should be recognised in their financial statements. It also deals with protecting the needs of users of Residential Management Companies financial statements (including tenants); and assisting preparers in fulfilling their statutory duties.
Full copy of Information Sheet here
Thursday, June 21st, 2012 in Landlord, Managing Agent, News, Residential, Service Charge
Deborah Caldwell of Manches has reported a case where the landlord tried to defeat its tenant’s break right on the grounds of non-payment of insurance rent and material breaches of the tenant’s repairing covenant. However, the court found that the wording in the lease supported the tenant’s argument. The landlord could only demand the insurance rent once it had itself incurred the cost.
Read the full article here
Monday, June 11th, 2012 in Landlord, News, Residential, Service Charge
Mark Vinall of Winckworth Sherwood has noted that a council that owns a block containing several flats has won its legal dispute with a tenant over the recovery of management charges. The case went to the Lands Chamber of the Upper Tribunal, which decided that no costs had been counted twice, since the council’s finances had been recorded transparently and that it had therefore acted appropriately.
Read the full article here
Wednesday, May 16th, 2012 in Commercial, Landlord, Managing Agent, News, Residential, Service Charge
Siobhan O’Dwyer of the Independent.ie notes that owner Managed Companies (OMCs) are increasingly facing a funding timebomb caused by service charge “won’t payers” who are deliberately avoiding their legal obligation, making a mockery of the legal system and causing great hardship for their neighbours. A sortfall of 15pc-25pc each year can, over a number of years, adds up to a solvency crisis, which threatens the OMCs.
Read the full article here
Wednesday, May 16th, 2012 in Commercial, Landlord, Managing Agent, News, Residential, Service Charge
DWF reports that the decision in the case of Jean-Paul v L.B Southwark [2011] the Upper Tribunal (Lands Chamber) is a reminder to landlords to make sure that they continue to comply with the detailed service charge consultation requirements, as non-compliance can result in a drastic reduction in the amount that the landlord can recover from the tenants.
Read the full article here
Saturday, May 12th, 2012 in Commercial, Landlord, News, Residential
This Is Money reports that confidence appears to be returning to the property market with an increasing number of home movers expecting house prices to be higher in 12 months’ time, according to findings in a survey. Eight of ten of those surveyed believed house prices would either be higher or at the same level a year from now.
Read the full article here
Tuesday, April 17th, 2012 in Commercial, Landlord, Managing Agent, News, Residential
Maria Connolly of TLT Solicitors points emphasises that any failure to comply with the absolute terms of a break clause can disentitle a tenant from breaking the lease. This inevitably leads to landlords and tenants arguing over whether they have been properly operated. This lack of certainty benefits neither party, particularly given the time and cost that it takes to settle the issue in court.
read full article here
Monday, April 9th, 2012 in Commercial, Landlord, Managing Agent, News, Residential, Service Charge
Winckworth Sherwood LLP newsletter notes that landlords with leases granted before the introduction of the layers of statutory protection for flat owners regarding service charge could be set to benefit from a recent legal ruling. The case of St Leonard-on-Sea v John Oram and Mohammed Ghoorun centred on whether the landlord could recover the costs of the extra steps that had to be taken to enforce payment which were not thought of when the lease was granted.
Read the full article here