A Practical Guide to Commercial Property Service Charges

Disputes over commercial service charges are increasing in number each year. The inherent conflict of interest between landlords and tenants has led it to be a heavily litigated area with recent cases being of concern for both parties. This book aims to provide an introduction to commercial service charge with an overview of the matters that need to be considered when dealing with service charge disputes. It provides insight into the application of the Service Charge Code as well as reviewing what should be included within a service charge clause both to ensure recovery of sums due and avoid disputes. It seeks to serve as a useful initial reference guide for surveyors and solicitors alike and encompasses an overview of relevant case law to assist both with drafting service charge clauses and in dealing with disputes. ABOUT THE AUTHOR Rachel Garton is a consultant solicitor for Nexa Law, specialising in property dispute resolution. Her work comprises of all areas of commercial and residential property litigation and landlord and tenant matters, including: tenants right to first refusal, residential leasehold enfranchisement, service charges, lease renewal litigation, commercial and residential possession proceedings and debt recovery. She has a niche specialism in service charge disputes and has dealt with numerous service charge disputes from commercial and residential clients over the last 15 years as well as delivering a number of seminars on this topic for MBL Seminars. CONTENTS Part One – General Principles Applicable to Service Charges Chapter One – the Construction of the Service Charge Clause Chapter Two – Sinking or Reserve Funds Chapter Three – the Court’s Interpretation of a Service Charge Clause Chapter Four – Complying With the Mechanics of a Service Charge Clause Chapter Five – Factors Applicable to Both Commercial and Residential Property in Considering if Service Charges Are Payable Part Two – Principles Applicable to Commercial Service Charges Chapter Six – Factors to Consider in Determining Whether Commercial Service Charges Claimed Are Payable Under the Lease Chapter Seven – the Impact of the Service Charge Code: Professional Statement Part Three – Miscellaneous Points to Consider Chapter Eight – Tax and Indexation Chapter Nine – Mixed Use Premises Chapter Ten – Variations to the Lease Terms and Changes in Identity of the Parties Part Four – Disputes and Remedies Chapter Eleven – Alternative Dispute Resolution Chapter Twelve – Application for a Declaration Chapter Thirteen – Tenant’s Remedies for Non-Performance of the Landlord’s Obligations Chapter Fourteen – Landlord’s Remedies for Non-Payment of Service Charges Chapter Fifteen – Legal Costs Chapter Sixteen – Summary