Third Floor, 18–20 The Ropewalk, Nottingham, NG1 5DT

Reasonableness of advance Service Charge payment

Avon Ground Rents Ltd v Cowley
4-13-576x440 (Demo)

The Upper Tribunal considered whether it was reasonable for tenants to pay in advance for remedial works when the same costs were anticipated to be paid under the National House Building Council (NHBC) guarantee.

The question as to whether an advance request for payment is reasonable will depend on all the circumstances and specific facts of the case – as opposed to the application of a rigid set of rules (as set out in previous case law).

As there was no indication that there would be any delay in the payment being made from NHBC and there were no concerns regarding the amount to be received – The Upper Tribunal agreed with the Tribunal and found that it was NOT reasonable to add the amounts on to the anticipated service charge expenditure.

It’s always worth checking through the details of any service charge expenses.