I live in a rented prefabricated building that was built right after the war.
Our landlord has started work on the building, including the roof and windows, and says it will cost approximately £48,000 per tenant.
However, my lease states that I am only responsible for repairs. I have to pay? AC
Repair bill: Roof and window repair work will cost £48,000 but I’m not convinced I’ll have to pay
MailOnline property expert Myra Butterworth answers: Your situation is complicated by several factors but, as always, your lease is king.
The information you find there will help you determine where you stand and what you really need to pay.
Sometimes a landlord may not comply with the terms and conditions of their lease and in these circumstances you should consider going to court.
You should make an application to the First Tier Property Tribunal to see whether the proposed works are reasonable and necessary, and whether the costs of the proposed works can be claimed back through the service charges mechanism in the lease.
You will need to gather as much evidence as possible, including documents in which payment was requested.
We spoke to a legal expert about your situation and whether your landlord can claim back the cost of the work through the service charge.
Joanna Hill, real estate expert at Irwin Mitchell, responds: This inquiry concerns service charges and whether the cost of certain works proposed to a building carried out by a landlord can be charged to the tenant through service charge provisions included in the lease.
The provision of service charges in a lease will typically cover the landlord’s costs such as general maintenance and repairs to the building, as well as including cleaning and lighting of common areas.
The landlord, or his manager, will then calculate the sum owed for each apartment in the building and demand the prorated sum from each tenant.
Some leases will provide that only the “repair and maintenance” of the larger building, of which your rental interest forms a part, is recoverable, while other leases might go a little further by allowing recovery of improvement costs.
If the tenants are in doubt as to whether the proposed works are reasonable and necessary and the cost of the works is reasonable, then, provided they have not admitted that they must pay for it, they may apply to the First Level Property Court to determine liability. to pay the service charge.
When incurring works costs that an owner seeks to recover through the service charge, he or she will not necessarily be required to keep the costs to a minimum.
However, the law does offer protection to tenants in this regard; to ensure that they are not required to pay unfairly incurred service charges.
The law establishes that works carried out by a landlord may only be recovered through charges for services provided if they are reasonable and necessary; and the costs of the works are reasonable.
The law establishes that works carried out by a landlord may only be recoverable through charges for services provided if they are reasonable and necessary.
Finally, it is also worth noting that a landlord must consult with affected tenants before carrying out works of a certain value which will then be charged to the tenant through the service charge.
Works that will cost more than £250 per contributing tenant require the landlord to consult with the tenant first.
As part of this consultation process, the owner will be required to provide a notice of intent and a notice of owners’ proposals with estimates.
The landlord should also invite tenants to nominate potential contractors.
The tenants will then be able to make observations in relation to the proposed works and present them to the landlord. The landlord has the duty to take them into account.
Sometimes a landlord may modify the scope of works following feedback from tenants.
Key questions to ask
In the first instance you should review your lease to determine what is recoverable by the landlord through the service charge mechanism.
In this scenario, the tenant is obliged to contribute to the “maintenance of renovation, repair and proper and convenient management and operation of the Building.”
As such, the owner will not be able to recover the costs of anything beyond this.
The key questions in this case are whether the proposed works fall within the “repair, renovation and maintenance” of the building, and whether the proposed works are reasonable and necessary.
Furthermore, are the costs of the proposed works reasonable, if recoverable?
Problems often arise in distinguishing whether specific works carried out by an owner amount to repairs and/or improvements.
The distinction between these outcomes can be subtle and each case depends largely on its facts.
While it may be clear that fixing a broken component in a door or elevator would amount to a repair, the line between repair and improvement can become more tense when looking at windows or ceilings that perhaps include an additional or improved element, i.e. a panel only. glass windows to UPVC windows.
Certainly, where appropriate, further investigation should be carried out with the owner to see if there is evidence to demonstrate whether the windows and/or roof have actually reached their useful life and, if not, whether alternative options would be more suitable, i.e. say, a patch. roof repair instead of complete replacement.
Furthermore, where appropriate, explaining the proposed works to re-insulate and renovate the property, in this scenario, to increase the overall energy efficiency of the building, it may be more difficult for the owner to argue that this is “repair and maintenance” in rather than an improvement, especially if there is no evidence to confirm that the insulation or plaster is defective in any way.
Further inquiries should be made into the owner in relation to these proposed works.
If the tenant is concerned about the disproportionate cost of the works in relation to the value of the property or the extensive nature of the works which could amount to improvement works, then they should apply to the First Level Property Court to determine whether the works proposals are reasonable and necessary and whether the costs of the proposed works are reasonable and recoverable through the service charge mechanism of the lease.
