£90,000 service charges reduced to £250 following leaseholders challenge

Flat owners at Emanuel House have won a major case against Westminister City Council. The situation arose after the original contract value for repair and improvement work at the block escalated from £2.2m to an estimated £3.6m. As a direct result of these works Westminster City Council were seeking contributions through the service charge of between £50,000 and £90,000 per flat/leasehold.

Landmark Leasehold Advisory Services was instructed by 35 residents to piece together and fund professional representation on their behalf. Westminster City Council applied to the Leasehold Valuation Tribunal to prove the costs were fair, reasonable and ultimately recoverable from the leaseholders. However, the tribunal disagreed, reducing the cost liability to just £250 per leasehold title because the Council failed to consult with the leaseholders properly about the major works program.