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    • Mozza!
    • By Mozza! 16th Apr 18, 11:55 AM
    • 1Posts
    • 0Thanks
    Incorrect Service Charge Payments
    • #1
    • 16th Apr 18, 11:55 AM
    Incorrect Service Charge Payments 16th Apr 18 at 11:55 AM

    I bought a flat about two years ago and have been living in it since. It dawned on me I'm not sure I've ever been billed the service charge.

    After chasing it up, it turns out that the former owner (a management company) has still been paying the service charge all this time. The management company never told the service company that they no longer owned the flat so they have continued to bill them. Since they have paid it without query there has been no issue from the service provider.

    The service company will now be start billing me for the service charge, however I was wondering whether I would have to repay the last two years of payments made by the management company? I'm not sure where the error lies or how liable I am to pay the service charge payments made by the management company?
Page 1
    • need an answer
    • By need an answer 16th Apr 18, 12:36 PM
    • 1,125 Posts
    • 1,345 Thanks
    need an answer
    • #2
    • 16th Apr 18, 12:36 PM
    • #2
    • 16th Apr 18, 12:36 PM
    have you received the benefit of what the service charge provides during the time you have lived there?

    If you answer to this is yes then I would consider that you do have a moral duty to repay the charge that someone else paid on your behalf.

    However if you wish to dispute it then that is your prerogative
    in S 5 T 1 F 8
    out S 2 T 5 F 7
    2017 -32 2018 -33
    • eddddy
    • By eddddy 16th Apr 18, 1:09 PM
    • 7,455 Posts
    • 7,484 Thanks
    • #3
    • 16th Apr 18, 1:09 PM
    • #3
    • 16th Apr 18, 1:09 PM
    The way forward would be for the service company to refund the previous owner for the incorrectly charged service charges...

    ... and then bill you instead.

    However, depending on whether the bills were for payments in advance, there may be a slight anomaly - the '18 month rule':

    Under Section 20B of the Landlord and Tenant Act 1985, a landlord has 18 months within which to notify you of service charge costs being incurred or demand payment from you. If they fail to either notify you or demand payment within 18 months they will not be able to recover the charges from you.

    So if the bills include costs incurred by your freeholder more than 18 months ago... you could try arguing that you don't have to pay them.

    I don't know if a tribunal would agree with you.
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