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16th February 2021

What is a “due proportion”?

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A landlord has recently succeeded in its claim against a tenant for unpaid service charge. 

The tenant of offices in the Criterion Building in Piccadilly Circus argued that what was the “due proportion” of service charge requested by the landlord should be determined by the court not the landlord.  The court held that provided the Landlords decision as to the apportionment between tenants was rational then it was enforceable. The tenant also claimed that the landlord was not entitled to charge significant sums towards the sinking fund as part of the service charge. This claim also failed. Such wording is common in leases and landlord clients will be relieved that the court ruled in the landlord’s favour.

For further assistance in any matters relating to landlord and tenant do not hesitate to contact  Michael Russell on 01223 532750 or click here to email Michael.