I bought a leasehold flat in 2021 in converted building containing 7 flats in total. The lease agreement shows service charge contribution as a percentage of overall cost, split into 2 categories - general costs 11% and heating, lighting and cleaning of communal areas 14%. The higher percentage being based on the fact that my flat is on the 2nd floor. When I received my 2nd quarterly service charge bill this was accompanied by a breakdown of each flat’s contribution, mine showed 16% and 18%. When I queried with landlord he said my lease contained an error, that this was a genuine mistake and I must pay the higher amount because if I didnt it would impact on the other leaseholders. He also said that if he went to a tribunal he could demonstrate it was a genuine error and that ut was in the interests of the other leaseholders that I pay the greater contribution. He said he would take responsibility for submitting a rectification of error request to Land registry but he never did. My question is can he charge more than is in the lease agreement and even if I agree to pay the higher rate where do I stand if he does not take steps to amend my lease.
No he can not if the % due from you is written in the lease. Services charge % is normally calculated based on sqft of your apartment out of the liveable space in the whole building. The lease is a legally binding agreement on both parties and any changes to terms will involve updating all leaseholders’ leases. Free money for solicitors. If the % is not stipulated then the LL should be able to demonstrate clearly the calculation for the % allocated to you.
Agree with Nilesh You have agreement written and signed. He is trying it on to get more money
Thank you Colin3 and Nilesh. He did eventually provide a breakdown of each flats contribution which showed the increased % for mine which brought the total contributions upto 100%. He claimed that he sent this breakdown to my solicitor (my solicitor is adamant he didnt receive this) with the original lease prior to completion and therefore can prove to a tribunal that the lower % in the lease was a genuine error. I also received a letter from his solicitor sayibg the sane rhubg and that Ibshould pay this and any arrears to avoud potential court costs! I have done some research on how to amend leases with errors and not sure if I am interpreting things correctly but got the impression they can submit this rectification of error form. I feel I am in a difficult position as I dont want to fall out with the other leaseholders as I have the 2nd biggest apartment in terms of square footage. I just feel aggrieved that I purchased the flat in the belief that the service charge petcentage was reasonable, only to find it is much higher than I expected.