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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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I note that section 21 and 22 of the L&T Act 1985 give leaseholders

Resolved Question:

I note that section 21 and 22 of the L&T Act 1985 give leaseholders the right to ask for a breakdown of service charges and allow the inspection of receipts and invoices relating to the service charges. The right seems to relate to the previous accouting period. My question is if service charge invoice are issued four times per year do we have the right to information and inspection for costs for each quarter? We would like to know now rather than have to wait until the end of the financial year.
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello

The right under the LTA 1985 to ask for a breakdown of charges and inspect documents relates to accounting periods in the past I.e. No more than 12 months since the last accounting period, but you may ask your landlord to supply you with a breakdown and allow you to inspect quarterly upon the landlord issuing the quarterly invoices


The landlord may choose to oblige, but if they do not, then you would need to wait for the accounting period to end.

Can I help further?
Customer: replied 3 years ago.

Thanks for your reply.


 


Is this also the case if we pay quarterly in advance?


 


The worry is that they are spending without company approval and we think dipping into the surplus without agreement. You have helped me before but we are a flat management company of which we are members/directors. It is a couple of residents who are doing this so we would like to try and stop them. We are even having difficulty getting hold of invoices/bank account details as shareholders so we thought the L&T would help but it may be too late after year end.


 


Have you any ideas as to how we can stop them?

Expert:  UKSolicitorJA replied 3 years ago.
Yes, that is the case even if you pay quarterly in advance.

You can apply to the Leasehold Valuation Tribunal for relief before you make any further payments.

All the best
Customer: replied 3 years ago.

When you say relief from the Tribunal is this based on their behaviour i.e. dipping into the surplus or because they are refusing to provide information?


 


 

Expert:  UKSolicitorJA replied 3 years ago.
Because they are acting unreasonably. If they can justify why they are using the surplus, then that is fine.

Hope this clarifies
Customer: replied 3 years ago.

Sorry, I should have said that they have dipped into the surplus to pay for work that should have been through s20 of the L&T Act. They did not consult and some residents are refusing to pay so they are paying the bill by taking some of the surplus.


 


Not only did they fail to consult not one stage of the s20 process was followed.


 


Are we able to apply to a LVT on all of this? We need to find a way of bringing this all to a head.

Expert:  UKSolicitorJA replied 3 years ago.
Absolutely.

Failure to consult means no more than £250 may be recovered from the individual leases and dipping into the surplus to pay for this is against the law.

I suggest you speak to LEASE for further assistance and bring the tribunal claim without further delay.
http://www.lease-advice.org

Note that the new name of the LVT is now
The First-tier tribunal – Property Chamber (Residential Property)
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