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The Landlord and Tenant (Covenants) Act 1995 classifies leasehold covenants as being either ‘landlord’ covenants or ‘leasehold’ covenants. In relation to service charge arrears, these remain the liability of the previous leaseholder and do not pass on to the new owner. The Act explains that the new owner cannot be bound by covenants within the lease – such as service charge liability – until after the transfer of title has taken place.
Action can however still be taken via either the First-tier Tribunal or the county court, to secure a determination and judgement against the previous owner. This determination will then allow enforcement action to be taken against the new owner as a result of the breach of the lease.

 

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