Q: In the past our old landlord included, with our agreement, a charge of £50 per apartment (there are 37) in the annual service charge, and this £1,850 was passed over to the residents’ association to defray expenses on such items as room hire for meetings, refreshments at the AGM, stationery, professional advice, and, of course, the FPRA sub.
Our new landlord seems likely to refuse to do this, on the grounds that it is not a legitimate charge for the service fund. Similarly they have refused to purchase or rent additional parking spaces for the communal use of residents, financed through the fund.
Could someone let us know, please, what is the position on these matters and if we can find a document that gives a list of legitimate and non-legitimate payments from service charge monies?
With regard to this enquiry and items of expenditures previously paid for from the service charge account, I would note that unless otherwise stated in the lease, the landlord is correct in that, payments made under the service charge account are for the purposes of maintenance and therefore these type overheads aren’t covered.