Service Charge Arrears

Our specialist team deals with the recovery of arrears of residential service charges and insurance following default by a tenant as well as allowable client administration charges.

It is crucial to the efficient running of any property management company that there is a constant review of risk and credit control issues and also a quick and efficient recovery of outstanding arrears of services charges. Without adequate controls, management companies can find themselves under pressure from creditors who have supplied services and utilities to block-managed residential units. It is therefore essential to use specialist solicitors to deal with recovery for you.

Abacus are able to offer a speedy and efficient recovery service.  We can usually act on a no recovery no fee basis*.  As such it is rare that our clients are required to make any payment on account of any legal costs or court or Land Registry disbursements as all costs are ordinarily recovered from the late paying leaseholder.

We will carefully consider the terms of the lease to maximise recovery of arrears plus any interest and costs due from the leaseholder. If a debt has been owed for a substantial period of time then the interest accrued can be significant and provides added value to the recovery made.

* Subject to criteria being met.

Ours Fees

We are able to offer a no recovery no fee option with no upfront charges when the following criteria are met:

  • the leasehold title is registered;
  • the property is mortgaged to a financial institution such as a bank or building society;
  • there is a forfeiture clause present in the lease;
  • the lease allows for the recovery of professional legal fees;
  • there is no genuine dispute over the service charge.
  • the unpaid amount is more than £350 or consists of, or includes an amount that has been outstanding for more than 3 years.

It is usual for all these criteria to be met and when we do act on such a basis all fees are paid by the leaseholder.

On the rare occasion when a service charge is disputed on the grounds of reasonableness or otherwise it would ordinarily be the case that we would agree a separate charging structure with our clients but this is dependent on the nature of the dispute and its complexity.

Contact us on 0161 8330044 or litigation@abacus-law.co.uk for further information on how we can assist you.