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FTT Decision- Can you make a service charge?
In the case of Britanniacrest Ltd the Upper Tribunal considered whether a park owner could make a service charge to cover the cost of administrative tasks connected to the supply of utilities to a homeowner’s pitch. The Upper Tribunal’s view was that a park owner could be permitted to make a service charge if there was an express term in the homeowner’s agreement.
Recently, in the case of Mereoak Park, the First-Tier Tribunal (Property Chamber) has provided further clarification of the Britanniacrest case concerning service charges.
The Mereoak Park case concerned a service charge payable on a residential park under a (non-standard) express term. The homeowners argued that any express service charge terms were unenforceable, either because it was inconsistent with the implied terms contained in the Mobile Homes Act 1983 (as amended), or because it was an unfair term.
The Tribunal ruled that in light of the Britanniacrest decision an express term requiring the payment of a service charge was possible.
The Mereoak case is a helpful decision as it follows the Britanniacrest guidance that reasonable service/administration charges may be recovered under an express term (subject to the overriding regulation of utilities such as the Water Resale Order 2006).
If you have any queries regarding the recovery of a service/administration charge or if you are interested in subscribing to our Parklaw service contact the Parks team or our holiday park solicitors by telephone on 01392 207020 or email firstname.lastname@example.org