Summary of Rights and Obligations - Service Charges - Wales
Section 21B of the Landlord and Tenant Act 1985 inserted by Section 153 of the Commonhold and Leasehold Reform Act...
There is a potential cap on the costs for major works if the mandatory reduction for service charges applies.
The Mandatory reduction directions for social landlords (councils or housing associations) came into force in England on 12 August 2014.
The Directions limit the amount of service charges recoverable from leaseholders of social landlords, who occupy their flat or house as their only or principal home.
Within any 5-year period, the maximum a landlord can recover is limited to £15,000 within London and £10,000 outside London.
It applies to the cost of repair, maintenance or improvement undertaken with assistance from a programme such as Decent Homes Backlog Funding, where the application for assistance was made on or after 12 August 2014.
The Directions do not apply to properties in Wales.
More information you might find useful:
- Mandatory capping of major works service charges for leaseholders of social landlords in England
- My landlord is the local council or a housing association. I am worried that I will not be able to afford the service charge bills for works of repair, maintenance or improvement that they intend to carry out. Can I ask for a reduction?
- Service Charges and other issues
- Resolutions for service charge disputes
- More Frequently Asked Questions on Service Charges
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