Budget Schedules

In order to make service charges reasonable it is sometimes necessary to create differences in the types of services leaseholders across a development contribute towards. For instance, where multiple blocks of flats exist in one development, it may be fair to only charge leaseholders for services which affect their own block and not any others. In these circumstances a budget will have multiple schedules and leaseholders will only contribute to the schedules that are reasonable for them to do so.

But as reasonable as it may seem to start to cut your budget up into schedules, you can only do so if the lease says you can. Look for the mention of multiple apportionments for tenants or look to see if the list of services has been placed into more than one heading. The lease may be vague on the Tenant’s proportion saying that it should just be fair and reasonable, this could provide a case to implement more schedules if necessary.