Service charge decided by third party is declared void by tribunal

摘要

The message Provisions in residential leases enabling landlords to determine each tenant's service charge proportion may be void.The case Windermere Marina Village Ltd vs Wild (28 April 2014) concerned a lease of a flat in a development. The relevant service charge provision required the tenant to pay a fair proportion of the landlord's expenses on communal services. The proportion was to be determined by the landlord's surveyor, whose decision was to be final and binding. This Upper Tribunal decision highlights that in a residential lease context such wording, if challenged, is likely to be regarded as void by the courts.