Cases - Mark Skelton v DBS Homes (Kings Hill) Limited
Record details
- Name
- Mark Skelton v DBS Homes (Kings Hill) Limited
- Date
- [2017]
- Citation
- EWCA Civ 1139
- Legislation
- Keywords
- Service charges – Reasonableness – Estimates – Landlord and Tenant Act 1985, s.18, s.20B
- Summary
-
The appellant tenant appealed against the decision of the Upper Tribunal that he was liable to pay service charges over 4 successive accounting periods. The appellant argued that he was not liable to pay any service charges for those years on the ground that the respondent landlord had not complied with the terms of the lease and his liability to pay was therefore not engaged.
Under the terms of the appellant’s lease his liability to pay did not arise until the respondent had fulfilled his obligation to prepare estimates containing a summary of the estimated costs and to serve them on the appellant together with a statement showing the service charge payable by the tenant on account of those service costs.
It was clear from the definition of 'service charge' in s.18 of the 1985 Act that s.20B applied to service charges in respect of costs to be incurred as much as costs that have been incurred. The Upper Tribunal had erred in applying Gilje v Charlegrove Securities [2004] 1 All ER 91 because in that case there was a prior valid demand and the demand was only validly served after the costs were incurred.
It was not enough under s.20B of the LTA 1985 that the appellant had received the information that the respondent proposed to make a demand. There had to be a valid demand for payment of the service charge that complied with the terms of the lease, London Borough of Brent v Shulem B Association Ltd [2011] EWHC 1663 applied.