Service Charge Recovery & Building Safety

Service charge recovery under the new building safety regime

The introduction of the Building Safety Act presents a new framework and parameters for costs that relate to remediation which directly impact the scope and recovery of service charges.

From June 2022, there are limits to the service charges that a leaseholder is liable to pay, permitted maximum thresholds and specific criteria for relevant defects and buildings.

New regulations also provide criteria for landlords, where no service charge is payable under a qualifying lease if contribution conditions have been met relating to the landlord group’s net worth.

However, the law does stipulate that there are legitimate and necessary reasons for invoicing leaseholders on some building safety measures, including some (capped) costs for non-cladding historic defects.

As both a leader in service charge arrears recovery (on both residential and commercial premises) and legal matters relating to building safety, the JB Leitch team can advise you on interpreting leases, factoring in the new building safety legislation and determining the eligibility of costs under the service charge as part of our end-to-end recovery services.

If you need advice on how the new leaseholder protections impact service charge recovery, and to discuss how we can help further, contact us below or fill in our brief enquiry form opposite.