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Leasehold: Service Charges

Volume 503: debated on Wednesday 6 January 2010

To ask the Secretary of State for Communities and Local Government what means of redress leasehold tenants have in respect of service charges levied by a local authority freehold landlord. (308325)

Local authority long leaseholders as well as long leaseholders more generally have a number of rights where service charges are concerned. Key rights are:

The right to ask a leasehold valuation tribunal (LVT) to determine the liability to pay and reasonableness of service charges that they are asked to pay under the terms of their lease, where they contribute towards service charges the costs of which vary;

The right to be consulted where the landlord is to carry out works that will cost an individual more than £250, or a long term agreement where the costs under the agreement will exceed £100 per individual;

The right to ask for information about service charges and insurance of the property, including the right to ask for a summary of service charges and to inspect the supporting documentation and receipts etc.

To ask the Secretary of State for Communities and Local Government if he will make an estimate of the incidence of the over-charging of leasehold owners of flats on building insurance by property agents who share commission with freeholders. (308701)

Information is not available on the number of incidents where leaseholders of flats may have been ‘overcharged’ in respect of the contributions paid towards the buildings insurance premium as a consequence of commission being paid to the freeholder and/or managing agent. I am not therefore able to provide an estimate.

However, where leaseholders of flats believe that any demand made of them through their service charges for contributions towards building insurance is unreasonable, they have the right to ask a leasehold valuation tribunal to determine the reasonableness of the demand.