Service charges in residential property
Service charges are sums of money paid by tenants to landlords for services and works provided or done by the landlords under the lease. It is an amount payable by a tenant of a dwelling as part of, or in addition to, the rent. The First-Tier Tribunal (FTT) (formerly known as the ‘Leasehold Valuation Tribunal’) has long been able to adjudicate on whether or not a service charge is reasonable. The introduction of the Commonhold and Leasehold Reform Act 2002 has effected a major extension of the FTT’s jurisdiction.