01 August 2009
Apportionment of service charges in mixed use developments

Mixed use development is increasingly common and no doubt here to stay, yet the objectives of residential and commercial developers are varied in no small part due to diversity of occupier requirements. This information paper is written to address new developments where the service charge apportionment strategy can be constructed simultaneously with the lease documentation. In addition, the principles it sets out can be used when considering revising the apportionment of existing developments where the existing leases do not allow for apportionment to be amended.

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01 June 2009
A Good Anchor

Peter Forrester's article further explores the issues focused upon in the RICS's 'Sinking funds, reserve funds and depreciation charges', offering pros and cons for each.

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01 February 2009
Service charges and tenant alterations

This white paper outlines how a tenant's own alterations to a property may affect the landlord's service charge. It also points to examples from various types of lease to illustrate how a tenant may legally make such alterations within their contractual agreement, along with their repercussions to the landlord.

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01 February 2009
Sinking funds, reserve funds and depreciation charges

Sinking funds, reserve funds and depreciation charges are all ways of making financial provision for future repairs or replacements. Fraught with financial (particularly taxation) and administrative difficulties, a major problem historically has been understanding the type of arrangement provided for (intentionally or otherwise) under the terms of the lease and the question of who ‘owns’ the sums collected through the service charge. This RCIS white paper explains these three methods, using clear, helpful examples and up-to-date information as to who is legally considered to be the owner of such monies.

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15 August 2008
Case in Point: Service Charges 2nd Edition

The new second edition of this highly practical, case-based book, written by Peter Forrester, Director of the Service Charge Consultancy at Savills, brings welcome clarity to the complex area of service charges - a subject notorious for generating friction between landlord and tenant.

Based on summaries of service charge cases with commentary by the expert author, this fully updated edition includes brand new material covering:

- mixed use buildings
- reserve and sinking funds
- reasonable costs
- liability for the cost of ambiguous or duplicate services
- appointment of managing agents
- misinterpretation of lease provisions
- management fees
- time limits
- certification of service charge expenditure
- consequences of the new Code of Practice

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15 January 2008
Residential and Commercial Service Charges: A Surveyor's Handbook by Peter Forrester and Christopher Gibb

For those involved with service charges this book is an essential guide not only to good practice, but also on how to anticipate and be prepared for what might otherwise be costly oversights. It is an ideal guide to possible pitfalls and examples of best practice in the service charge field.

The book is available through RICS Books - RICS Books Customer Services, Surveyor Court, Westwood Way, Coventry CV4 8JE UK Tel: +44 (0) 870 333 1600, Fax : +44 (0) 20 7334 3851 or Email: mailorder@rics.org.                  

01 March 2007
In disputed territory

A recent case has highlighted the typical causes of many service-charge disputes, writes Peter Forrester.

The 2006 case of Princes House Limited v. Distinctive Clubs Limited concerned a landlord's claim for recovery of the cost of roof repairs where it had, contrary to its repairing covenant, failed to use all reasonable endeavours to complete the works before the expiry of the tenant's capped service charge arrangement.

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01 January 2007
From the Rooftop

The case Princes House Ltd versus Distinctive Clubs Ltd [2006] ALL ER (D) 117 concerned a landlord's claim for recovery of the cost of roof repairs where the landlord had, contrary to its repairing covenant, failed to use all reasonable endeavours to complete the works before the expiry of the tenant's capped service charge agreement. Peter Forrester reports on why the judge's summing up of the case highlights the typical cause of many service charge disputes.

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01 December 2006
It's time to earn an honest penny

Peter Forrester explains why a full recovery of service charges is facing rejection in the commercial lettings market

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