Has this Legislation come in yet?

glicky

I received this booklet from the LAS and it states the following:

Service Charges: Summary & Conclusions:

"service charge funds are deemed to be held in trust. In due course new legislation will require funds to be held in a designated trust account and the service charge payers will have rights to information about the account and to withhold payment of a service charge where they genuinely believe the landlord is not holding the money in accordance with the legislation."

Could you please tell me if this Legislation has come into being and if it has:

1. What Act is it?
2. When did it come into being?

If it has not, does anyone know WHEN this Legislation will be?

The Landlord wants £18,500 up front for service charges, but will not inform us where the money is going to go - he says it will go into his bank account, but will not tell us when works will start etc.

Any help would be appreciated.

Thank you

propertyman

No. The law does require that the funds are held in trust, and if he is unwilling to confirm that the money that he holds is recognised by the bank as protected by section 42 of the Landlord and Tenant Act 1987 then there are two broad remedies.

1: a private prosecution in the magistrates court or if they are willing have the local authority issue those same proceedings under section 35 of the same Act

2: as a breach of the approved code of practice it is basis to seek the appointment of an independent manager or compulsory acquisition of the freehold.

All he need to do get a letter from the bank, but your best tactic is to indicate that you will all challenge the sum at the LVT and reach a compromise.

Fire_Fox

Is he permitted to ask for that money up front under your long lease? If they are only permitted to charge for major works in arrears you have much less of a worry.