Residential Service Charges - New Leasehold Reforms & Other Key Issues for Conveyancers

Introduction

Every year, significant numbers of residential service charge disputes are determined by tribunals and, sometimes, the courts. This fact alone illustrates why service charges are a fertile source of disputes between residential lessees and lessors.

Moreover, there are many issues that buyers’ conveyancers must consider when investigating service charges on leasehold purchases; such as the relevant lease provisions, the accounts for the past three years, sinking or reserve funds, and any section 20 notices.

This virtual classroom seminar will explore essential issues surrounding service charges in the context of residential leases, including significant changes to the law which will be made by the Leasehold and Freehold Reform Act 2024.

What You Will Learn

This live and interactive session will cover the following:

• The implications when leases do not set out a comprehensive range of services
• Do sweeper/catch-all provisions allow the recovery of unspecified heads of expenditure?
• Are lessees liable to pay for services they do not benefit from, including where they are provided to flat owners in other buildings on their estate?
• The importance of distinguishing between mandatory and discretionary services
• The significance of section 20 notices for major works and the associated consultation requirements
• How might you apportion the service charges, on assignment, when a prior section 20 notice has been served? Does a lender need to be notified?
• Potential pitfalls where the lease does not provide for an interim service charge
• What should you do if there is no reserve or sinking fund?
• What should you look for in the service charge accounts, especially in light of the 2024 Act?
• Specific issues that can arise in relation to buildings insurance (including the new rules on permitted costs), repair, improvements
• Who administers the service charges in the event of the Right to Manage being exercised?
• How far does a conveyancer need to go to advise clients on the Tribunal’s jurisdiction to determine issues pertaining to service charges?
• Planned building safety charges
• New statutory rights to obtain information about service charges
• Service charge issues unique to Right to Buy leases

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.