The lease states that a certification of individual leaseholders liability is required
What is the risk?
The lease may specify that the independent accountant should certify a Statement setting out the individual lessee’s share of the total expenditure, the payments made on account and the resulting shortfall or surplus.
The Upper Tribunal decision in Powell + Co Investments Limited (January 2021) found that no sum was payable by the leaseholders because the accounts did not include such a certificate to satisfy the contractual requirements of the lease.
Residential Service Charge accounts
The residential service charge accounts should include any certificate, statements and signatories that are required by the lease and care should be taken to ensure that any certificates or statements follow the exact terminology used in the lease.