Course Code: T903

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SERVICE CHARGES
The Challenges for Landlords and Tenants
Wednesday, 9 April

This course will consider both commercial and residential service charges and reserve and sinking funds.  It will cover the interpretation of service charge clauses in different types of leases, the relevance and application of codes of practice, the statutory regime for residential service charges, and best practice.

This course will cover:
• The landlords’ aims; the tenants’ aims; the inherent conflicts
• Different types of service charge
• Management costs
• Auditing and certificates
• Latest views on statutory and common law reasonableness tests
• Commonhold and Leasehold Reform Act 2002 and the regulations made in 2003: changes to the residential service charge code
• Potential legislative changes
• Codes of Practice
• Common shortcomings in leases
• Drafting suitable lease provisions
• Liability of assignors and assignees when leases change hands
• Apportioning the costs of unevenly shared services
• Solving the most common problems  
• Benchmarking
• RICS Commercial Service Charge Code (2006)
• Handling sinking funds
• Cost implications versus lease terms

The day will be of benefit to property managers, residents’ companies and lawyers responsible for drafting and negotiating leases.

COURSE DIRECTORS:
Derek Bruce, Principal Lecturer, School of Surveying, Kingston University
Philip Freedman CBE, Senior Property Partner, Mishcon de Reya