Service charge and outgoings

Both residential and commercial landlords aim for a 'clear lease': where the costs of repair, maintenance and provision of services are met by the tenants rather than being deducted from the rent received.

Where a building is in multi-occupation it is sensible for repair, maintenance and services to be controlled by the landlord, with the costs being recovered from tenants through the service charge.

In commercial leases the tenant's obligation to pay service charge, and the landlord's ability to recover costs, are entirely contractual and are not subject to statutory control. In residential leases the tenant's obligation to pay depends on there being a contractual service charge clause, but the landlord's ability to appoint managing agents, carry out works and to recover costs is heavily regulated by statute.

Service charges in commercial property—RICS professional statement

Commercial service charges are not (yet at least) subject to statutory control. However, the first edition of the Royal Institution of Chartered Surveyors (RICS) professional statement, ‘Service charges in commercial property’ (the Service Charge Statement), is effective for all service charge periods commencing on and from 1 April 2019. It supersedes the

To view the latest version of this document and thousands of others like it, sign-in with ��Ӱ�� or register for a free trial.

TAKE A FREE TRIAL

Latest Property News

Welsh Government launches Green Homes Wales pilot scheme

The Welsh Government has announced the launch of the Green Homes Wales pilot scheme, aimed at assisting households across Wales in implementing energy and carbon-saving measures to reduce energy consumption and energy bills. Through this scheme, homeowners in Wales can access interest-free loans to decarbonise and improve the energy-efficiency of their homes.

Clarification of lease/licence distinction for code agreements (AP Wireless v On Tower)

Property Disputes analysis: The Tribunal held on review of two telecoms agreements that an agreement with no term certain was a licence even with exclusive possession and rent forming part of the agreement. Here the licence was granted for a minimum of ten years and continued thereafter on a non-periodic basis. A licence will need to follow the telecoms code for renewal or termination rather than a lease still governed by the Landlord and Tenant Act 1954 (LTA 1954) which the Tribunal held was the case for the second agreement. The lease was for 20 years with exclusive possession and requiring rent to be paid by the operator. Written by Katie Briggs, senior associate in Property Litigation at Browne Jacobson LLP.

BPF announces BtR completions exceed 120,000 over past 12 months

The British Property Federation (BPF) has announced that Build-to-Rent completions have exceeded 120,000 over the past 12 months, reflecting a 23% increase. However, analysis by Savills shows a sharp decline in construction activity, with the number of homes under construction declining by 20% year-on-year.

HMLR launches initiative to reduce requisitions

HM Land Registry (HMLR) has published information on its plan to reduce the number of requisitions sent to conveyancers, and HMLR’s consistency in sending them, after feedback found that this was a high priority for customers. A requisition is raised if HMLR is unable to complete a registration application because the required information is missing or incomplete. To reduce the number of requisitions sent, and the consistency of requisitions, HMLR is increasing caseworker capability through improved training and guidance, developing systems and policies to eliminate errors, and assisting customers in submitting complete and correct applications. HMLR has also developed a Training Hub for customers, Specialist Support Services, and online workshops to avoid requisitions.

��Ӱ��