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Service charge definition

What does Service charge mean? A service charge is a variable payment made by a tenant, leaseholder or other occupier to a landlord, owner or management/factoring company to recover the cost of providing, maintaining, repairing, insuring and managing common parts and shared services in a multi‑occupied building or estate (residential or commercial). It is typically budgeted annually, demanded on account, and later reconciled by a balancing charge or credit. Apportionment is usually set by the lease or title (for example, a fixed percentage, floor area, rateable value or a “fair proportion”). Demands commonly include managing agent fees and contributions to reserve/sinking funds, and...

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Forfeiture where service charge lacks LTA 1985 Summary: barred or cured?

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Pursuant to section 21B(3) of the Landlord and Tenant Act 1985 (LTA 1985), a tenant may withhold paying a Service charge if the demand is not sent with the summary of rights and obligations in the prescribed form (the s 21B notice)...

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Carl Fain
Carl Fain chambers

Property and chancery practice with a focus on landlord and tenant. Work includes all aspects of commercial and residential landlord and tenant including dilapidations claims, business tenancy renewals, enfranchisement, rights of first refusal, RTM, appointment of managers and service charge disputes. Real property disputes including mortgage related claims and in particular LPA receivers, property related professional negligence, co-ownership, easements, nuisance, restrictive covenants, boundary disputes and Party Wall Act matters. As well as appearing frequently in the County Court and the High Court, Carl has represented clients in the First-Tier Tribunal (Property Chamber), the Upper Tribunal (Lands Chamber) and the Court of Appeal. "Very bright, gets on well with clients and is a terrier in court" and "he's extremely knowledgeable, doesn't balk at any points and is ready with the answers." Chambers UK Bar Guide 2018 (Real Estate Litigation) "A hidden treasure; he is very bright, good in court and with...

Web page updated on 27/05/2026

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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

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