Service Charges

Ministry of Housing, Communities and Local Government written question – answered on 19th February 2019.

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Photo of Baroness Thornhill Baroness Thornhill Liberal Democrat

To ask Her Majesty's Government what plans they have to stop landowners and managing agents from using service charges to recover legal defence costs from home owners who they have entered legal disputes with.

Photo of Lord Bourne of Aberystwyth Lord Bourne of Aberystwyth The Parliamentary Under-Secretary of State for Wales, Parliamentary Under-Secretary (Housing, Communities and Local Government)

Leaseholders can apply to the Tribunal at any time to make an order under section 20C of the Landlord and Tenant Act 1985 for the court or tribunal to limit or prevent the recovery of legal costs via the service charge. In addition Section 131 of the Housing and Planning Act 2016 amended the Commonhold and Leasehold Reform Act 2002 to give the courts and tribunals a discretionary power to reduce or extinguish a leaseholders liability to pay a particular administration charge in respect of litigation costs.

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