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Legal: recovery of unpaid service charges

Monday, April 6th, 2009 in Residential, Service Charge

Property Week Law Report summarises a recent case between the Peabody Trust and Paddington Walk Management.  It clarifies the steps that managing agents have to undertake and the associated timeframes in order to recovery service charges.

The case highlights two points: first, the hurdles landlords and management companies face in recovering service charges and, second, why there are so many disputes in this respect.

Summing up: Paddington Walk Management v Governors of Peabody Trust

The trust disputed a claim of £160,000 for service charges by Paddington Walk because of late claims and a lack of consultation.

The county court held for the trust on the points of lateness and lack of consultation.

It said managing companies needed to comply strictly with the Landlord and Tenant Act 1985.


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