fbpx

Please click here for our latest COVID-19 information.

Landlords - at your tenant's service?

propertyspotlight
What should a landlord do if faced with a tenant not paying his or her service charges?

The landlord may well think that if the tenant is not prepared to pay then why should he or she receive the service? However, landlords are advised to think again if considering cutting off services to their tenants.

A recent High Court case, Winchester Park Ltd v Sehayak, decided that a landlord was not entitled to shut down a lift service in a building because the tenant had failed to pay his service charges.

The tenant was a leaseholder in a fairly upmarket block of flats. A dispute had arisen over the service charges and this had rumbled on for some time. The tenant was refusing to pay the service charges. The landlord thought it would be a great wheeze to “convince” the tenant to pay by shutting down the lifts which serviced the tenant’s flat. The landlord clearly believed that the prospect of climbing the stairs would be sufficient to persuade the tenant to pay.

However, the tenant had other ideas. So, eschewing the health benefits of the increased exercise he would receive from using the stairs, the tenant applied to Court for an injunction. The injunction was dealt with prior to the hearing because the landlord restored the service, but the Court still needed to decide whether the landlord was entitled to take that action in settling the issue of who paid the costs. The Court found against the landlord and determined that the landlord was wrong to stop providing the lift service.

The law in this area is complicated and even if your lease makes the provision of services conditional on payment of service charges by the tenant you may still be legally required to provide services even if the tenant doesn’t pay. It is important for landlords to seek legal advice before taking any step to cut off services to your tenant because you could end up with a significant costs order against you.


More information

The Dispute Resolution Team at Pinney Talfourd Solicitors in Essex can assist with all aspects of property litigation work. If you have any queries relating to a property litigation please contact any member of my team on 01708 229 444 and we will be happy to help. Alternatively, click here to find out more about our services.
 

The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. Specific legal advice should be taken on each individual matter.
  1016 Hits
1016 Hits

Brexit and the Property Market

brexit
The EU referendum is fast approaching with the vote due to take place on 23rd June 2016. Julien Pritchard considers what potential effect the vote will have on the property market.
 
Unless you do actually live in a cave it is reasonably hard to avoid this topic at present with many arguments being put forward by both the remain and leave camps.

Before we get started please let me state categorically that this article is not a statement either in support or against the “Brexit”. I am afraid you will have to form your own opinions on that particular issue. However, I am willing to consider the potential effect of the vote on the property market.

The simple fact is that the property market in the UK likes one thing and that is stability. The reality is that whether we as a nation vote to remain or leave we are in a period of instability. Many large organisations have considered this issue in great detail. For example, a KPMG poll of 25 global real estate investors with assets under management of over $400bn has revealed that two thirds believe a Brexit would result in less inward investment into UK property and property companies.

The estate agency Savills has warned that the UK residential and commercial investment markets are “subdued”. The Royal Institution of Chartered Surveyors has voiced a similar opinion stating that the current vote could result in “a degree of uncertainty for buyers that may negatively affect some elements of the market”.

It is recognised that general elections tend to paralyse house sales and recent research from Hamptons International and Jefferies demonstrated that property transactions tend to slow ahead of a general election. There is no reason not to think that a vote on an issue as large as Brexit will have similar effect.

Whatever the outcome of the referendum we are entering a period of uncertainty and that cannot be good for the property market. If we do leave then that period of uncertainty may be extended, however, only time will ultimately tell what the long term implications are and whether any potential short term loss is offset by a future gain.


More information

The Commercial Property Team at Pinney Talfourd Solicitors in Essex can assist with all aspects of commercial property work including refinance, sales, purchases, lettings and licences for alteration, assignment etc. If you have any queries relating to a commercial property please contact any member of my team on 01708 229 444 and we will be happy to help. Alternatively, click here to find out more about our services.
 

This article was written by Julien Pritchard, Head of the Commercial Property Department at Pinney Talfourd Solicitors. The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. Specific legal advice should be taken on each individual matter.
  1139 Hits
1139 Hits

2016 and the commercial property market

Julien-Pritchard
Head of Commercial Property, Julien Pritchard, provides a snapshot of what lies ahead for commercial property clients.


A look back at 2015

2015 was, by all accounts, a good year for commercial property with a good level of recovery in the rental market.

Unsurprisingly central London offices have led the upswing. However, several areas including Brighton, Bristol, Cambridge, Manchester, Leeds and Oxford have also seen a healthy increase in office rents. Industrial rents have also risen in many locations, fuelled in part by growing demand from online retailers and parcel couriers. Retail has not fared as well. Again London and popular tourist locations continue to perform but outside of those hotspots the retail world is still adjusting to a shift in consumer spending habits.

2016 looks positive for the commercial property market

There is a general feeling of optimism for the coming year. There is a consensus that UK GDP will grow by 2.25 to 2.5% through 2016 to 2017 and this can only be good for the markets. It is still far from simple to obtain finance on commercial development sites and with many sites being snapped up for residential development the supply of new commercial sites may decrease which should increase the demand/ rental costs for existing commercial units.

The mantra “location location location” is as true for commercial property as it is for the residential sector and the right space, in the right place with the right infrastructure and services should garner good returns for commercial property investors. Prudent landlords may well consider spending their hard earned money on refurbishing existing space to make it more attractive to tenants and securing a higher income per unit rather than investing in additional secondary or tertiary space.

Are you moving in 2016?

The Commercial Property Team at Pinney Talfourd Solicitors in Essex can assist with all aspects of commercial property work including refinance, sales, purchases, lettings and licences for alteration, assignment etc. If you have any queries relating to a commercial property please contact any member of my team on 01708 229 444 and we will be happy to help. Alternatively, click here to find out more about our services.
 


This article was written by Julien Pritchard, Head of the Commercial Property Department at Pinney Talfourd Solicitors. The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. Specific legal advice should be taken on each individual matter. This article is based on the law as at January 2015.
  1045 Hits
1045 Hits

© Pinney Talfourd Solicitors | Disclaimer | Offices: Upminster | Brentwood | Hornchurch | Leigh-on-Sea | Canary Wharf