Service charge s20: recovery of 50% insurance/structural costs

Published by a LexisNexis Property Disputes expert

Q&As

Landlord and Tenant Act 1985, s 18 (LTA 1985)

Section 18 of the LTA 1985 sets out that a service charge is an amount that a tenant of a dwelling is required to pay as part of, or in addition to, the rent, where:

it is demanded, whether directly or indirectly, for services, repairs, maintenance, improvements, insurance, or the landlord’s costs of management; and
the whole or any part of the charge varies, or may vary, according to the relevant costs.

Under s 30 LTA 1985, the term 'landlord' denotes any person who has the right to enforce a service charge, and so this definition may extend to another tenant.

Provided that the 50% contribution paid by the tenant of the first floor flat is variable, rather than fixed, then it constitutes a variable service charge within s 18.

A, as landlord, will be entitled to recover no more than is 'reasonable' by way of service charge from the tenant of the first floor flat (LTA 1985, s 19). The relevant costs must be reasonably incurred, and the services or works must be of a reasonable standard...

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Morayo Fagborun Bennett

Gatehouse Chambers

Morayo specialises in all areas of landlord and tenant and property law. Recent cases include Charalambous v Ng [2014] EWCA Civ 1604 (tenancy deposit schemes), Coope v Ward [2015] EWCA Civ 30 (easement of support and measured duty of care) and Farah v Hillingdon LBC [2014] EWCA Civ 359 (intentionality and homelessness). She also regularly acts in disrepair and dilapidation proceedings, service and estate charge disputes and residential and commercial lease renewals.Morayo’s public law practice includes community care, Court of Protection, deprivation of liberty, welfare benefits, homelessness, judicial review and discrimination law. Recent cases concerned the community care needs of life sentenced prisoners, a deprivation of liberty case on the interface between the MCH and MCA and a test case on the lawfulness of the current practice adopted by decision makers in Employment Support Allowance...

Web page updated on 10/06/2026

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