Landlords will not need to consult leaseholders if
separately accumulated service charges exceed £250 during the year, the Court
of Appeal has ruled. The case, Phillips v Francis, overruled a decision in the
High Court that required landlords to conduct formal consultations if the cost
of works exceeded £250 during the year – a ruling that experts called ‘almost
unworkable’ as landlords could not be expected to predict service charges in
advance. Landlords were faced with a situation where, if unexpected repairs
were required, they would either be in breach of repairing covenants if they
did not carry out repairs, or liable for the costs themselves as they had not
consulted before making the repairs. Read more on Inside Housing.
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