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Administration Charges

Landlord and Tenant

The case of Greening v Castelnau Mansions heard arguments as to whether the landlord’s legal fees should form part of the tenant’s service charge.  The legal expenses had been incurred by the landlord in trying to recover unpaid service charges from the tenant.  The landlord suggested the legal fees were covered under a clause in the lease which allowed the landlord to employ “all such surveyors, builders, architects, engineers, tradesmen, accountants or other professional persons as may be necessary or desirable for the proper maintenance safety and administration of the building”. It was ruled that the legal fees were not related to the proper administration of the building.  A clause to allow the recovery of such fees would have to be unambiguous and worded clearly.

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