Service Charge Validity Test
- Are you a leaseholder who thinks a particular service charge is too high? Or are you a freeholder/managing agent concerned about the validity of notices that you have served? Get a basic idea of whether a service charge is valid using the test below. Please note that this is not an exhaustive test. For a professional service charge assessment please contact Pro-Leagle or use our Service Charge Dispute Analyser.
* Note that this test is only applicable to leasehold flats/apartments in England
(1) Have the leaseholders already paid, or agreed payment of, the disputed service charge?
(2) Do the leaseholders consider the charge to be unreasonable (e.g. were works unnecessary, not carried out, carried out to a low standard, too expensive or not allowed under the terms of the lease)?
(3) Does the freehold company own their managing agents or buildings insurance brokers?
(4) Did the freeholder/managing agent consult with the leaseholders over expensive works or service contracts? For example, were they served a notice detailing works to be carried out inviting comments?
(5) Did the leaseholders receive statutory documents requesting monies as and when they were due as well as a summary detailing all charges in a 12-month period?