Case Study

IQ Shoreditch

Client

IQ Shoreditch Letting Property Partnership - part of one of the largest providers of student accommodation in the UK

 

Brief

Believing the service charge to be high, we were instructed to review it and challenge the landlord if there were substantiated grounds to do so

 

 

Result

Following a forensic analysis of the student accommodation lease, the service charge accounts and an inspection of the property, we concluded that the client’s service charge liability was restricted to costs associated with the management of the site (staff, health & safety and fees) and services specific to a shared courtyard. However, the managing agents were charging our client a proportion of all services - such as internal office cleaning. This was in breach of the landlord’s covenants.

We also identified (from a review of the lease) that costs incurred in relation to a bike store, a car park with car lift and a central plant room could be charged back to the landlord, as they are common to the whole site but located within our client’s building. 

As a result, we have saved the client almost £2.4m over the life of the 135-year lease. In addition, we challenged the landlord on gas charges levied and obtained a refund for £28K over a six month period.

 

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