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ARTICLE · 09 FEBRUARY 2023

Service Charge Certification: Conclusive Yet Uncertain

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The Supreme Court handed down its judgment in Sara & Hossein Asset Holdings Limited v Blacks Outdoor Retail Limited [2023] UKSC 2 on 18 January 2023. However...

United KingdomReal Estate and Construction
Ian Crowe
Ian Crowe
Charlotte Wormstone
Charlotte Wormstone

The Supreme Court handed down its judgment in Sara & Hossein Asset Holdings Limited v Blacks Outdoor Retail Limited [2023] UKSC 2 on 18 January 2023. However, it provides both clarity and uncertainty for landlords and tenants with respect to commercial service charges.

Sara & Hossein Ltd ("S&H"), the landlord, and Blacks Outdoor Retail Limited ("Blacks"), the tenant, argued whether the certificate issued by S&H, requesting the balance of payment owed by Blacks for the outstanding service charges was conclusive. The dispute concerned £408,000 in service charges levied during 2017-18 and 2018-19 – substantially more than the £55,000 Blacks was charged for the service charge during year 2016-17.

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