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Buachaill, Barrister
Category: Law
Satisfied Customers: 10949
Experience:  Barrister 17 years experience
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I have been given a new Licence to sign after a rent review

Customer Question

I have been given a new Licence to sign after a rent review - the rent has increased by 114%. It is also now not broken into rent and service charge but is one figure. I have queried this but have no satisfactory answer as to why. What are the implications of not separating out Service Charge? I am concerned maintenance of the building will be affected.
Submitted: 2 years ago.
Category: Law
Expert:  Buachaill replied 2 years ago.
1. It is important to get the Service Charge separated out as in essence, the two things, - rent and service charge - relate to two different things and have very different effects if one of them is not paid. Rent relates to the use of the tenanted premises. If you don't pay the rent, you can be ejected and you could be out on the street. Service charge by contrast merely relates to the upkeep of the building. If the building is not properly maintained, then you and other flat owners have the right in law to withhold payment to ensure the proper provision of services. However, if you don't pay the Service Charge, the consequences are not so serious. Services cannot be immediately withdrawn as services are provided to all flats. So this element is not so serious.
Expert:  Buachaill replied 2 years ago.
2. Effectively, this is an attempt by the whoever you are dealing with to lump all charges into one, so the serious consequence - loss of apartment - occur, even if you don't pay the service charge or if you withhold the service charge because the maintenance is not up to scratch. So you should resist this and ensure the two charges are separated out and identified separately.
Expert:  Buachaill replied 2 years ago.
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