Residential Service Charges Update

As increasing numbers of investors now include residential and mixed use properties in their portfolios there are bound to be issues dealing with the residential element of service charges and you really can't be too careful about the administration of residential service charges.

From our perspective it seems like an almost endless stream of cases appear on the subject of residential service charge and this is a short summary of the most significant, highlighting just how much attention to detail is required when setting up and managing service charges for buildings and estates with any residential element.

• The first (and most recently decided) case is the most significant in legal terms and unusual in that the landlords were the victors. The Supreme Court in Arnold v Britton declined to bend the usual rules of construction in favour of the tenants of holiday chalets let on long leases.