How Service Charge Compliance Protects Freeholders From Costly Disputes

Legal requirements

• Charges must be reasonable

• Costs must be recoverable under the lease

• Proper consultation must be carried out (Section 20)

• Accounts must be transparent

Common mistakes

• Using the wrong cost categories

• No reserve fund

• Missing consultation notices

• Mixing client and business accounts

• Poor documentation

Consequences

• Repayment orders

• Tribunal costs

• Inability to recover major works

• Director liability

Specialist management advantage

A block manager ensures:

• Lease compliance

• Budgeting accuracy

• Separate client accounting

• Full audit trail

• Legal consultation procedures

Good service charge management protects income and prevents disputes. Unity Block Management can guide and support you.