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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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Re Service Charges on a leasehold flat. The Chartered Accountants

Resolved Question:

Re Service Charges on a leasehold flat. The Chartered Accountants report to the Lessees concerning the annual accounts give their reasons and conclude "Due to the foregoing we are not able to state that in our opinion pages 1-3 are a fair summary of the assets and liabilities or sufficiently supported by accounts, receipts and documents produced to us as required by the Landlord and Tenant Act 1985". In view of this do the Leaseholders have the right to withhold the payment of Service Charges until a satisfactory Account is prepared?
Submitted: 3 years ago.
Category: Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Hi thanks for your question. My name is XXXXX XXXXX I can assist.

tdlawyer :

Yes, you would have the right to withhold until you do get a proper account and a proper explanation of what sums are due. You should put all potential service charge payments to one side (in your own account) so that you can pay it when due later.

tdlawyer :

You should consider issuing proceedings in the Leasehold Valuation Tribunal against the management company/landlord with a view to formally declaring what the true rent position is/what your liability is.

tdlawyer :

The LVT can then also direct what the landlord/managing agents should be doing to rectify this issue.

Customer:

If I go to the LVT, would I be liable for th e Managing Agents legal costs?

tdlawyer :

Not usually - no. The LVT can only order a maximum of £500 costs in any given case and that power is usually only used for very serious abuses of the tribunal system - not in cases like this which have a good reason - from an auditor saying the accounts are not right - for bringing the claim.

tdlawyer :

Does this answer your question? Is there anything more I can answer for you?

Customer:

Thanks for your help and speedy replies

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