ABSTRACT
This chapter proposes to focus on the various ways in which service charges recovery may be maximised in the light of the legislation. The salient points which can easily be missed are that insurance contributions are service charges and the cost of improvements is now included as well. Administration charges are not service charges as such, although they are now treated in a very similar way. Service charges are reserved as rent in the Tumbledown Mansions leases, so it is not necessary to serve a notice under section 146 of the 1925 Act. The freeholder will have ensured that it does not have to contribute from its own funds to the cost of recovering service charges in which it has no interest. The management company meanwhile has no assets of its own and no income save for the service charge or what it can bring in by way of a levy on its members.
