John H owns a flat in a block of 20, with a share of the freehold. He is a director of the Residential Management Company. A leaseholder in the building was disputing the payment of a Directors & Officers Insurance Policy out of the service charges account. A LEASE adviser examined the lease, and replied: “The Fifth Schedule of the lease deals with the service charges. Clause 2 sets out things that are included in this but makes it clear that the charge is not limited to those things specified. In my opinion the cost of Directors and Officers Insurance is recoverable under the wording of the lease.”

“I do not feel the lease is 100% clear and so a determination of this point may be required from the First-tier Tribunal (Property Chamber) or County Court if agreement cannot be reached on it. Solicitor’s costs are recoverable as part of the service charge cost and so an application could be made at the cost of leaseholders if it is necessary and reasonable.”

Mr H said “I find it amazing that, in this day and age, advice of this quality is actually free! Brilliant.”


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LEASE is governed by a board, appointed as individuals by the Secretary of State for the Ministry of Housing, Communities & Local Government.

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