Commercial property service charge dispute - locked out

[judas]

Just heard from a friend that he turned up at his workshop this morning to find the landlord has changed the locks. He's been in a dispute with them for quite a while over the service charge - basically they aren't maintaining the place properly and are refusing the provide a breakdown of the charges. He's withheld payment until the agreed amenities are restored and cost breakdown is provided. However, his rent has always been paid on time.

So to the questions:

1. Is the landlord permitted to do this given that the rent is up to date?
2. If not, is he allowed to force entry?

He's operating a one-man business so the impact is massive.

Edit: this article implies that the landlord has acted illegally: https://www.anthonygold.co.uk/latest/blog/forfeiti...

article said:

Forfeiture by peaceable re-entry is not available for any other breach other than non-payment of rent. For any other breach of covenant, a landlord must serve an s146 notice pursuant to the Law and Property Act 1925.

Edited by judas on Tuesday 18th July 12:28

[Bikesalot]

In my non professional opinion;

Your friend should be paying the service charge whilst disputing it, even if 70% is paid and it's in writing that 'I will pay 70% because I believe we are disputing 30% of it'

I'm playing with percentages there, but overall I think it should be paid whilst it's in dispute.

Did they notify him they would be changing locks are X amount of non payment?

[surveyor]

Service charge is highly likely to be referred to as additional rent within the lease definitions, for precisely this scenario.

Your friend should look up relief from forfeiture and take expert experienced (in this area) legal advice immediately. Do not go to a conveyancing solicitors.

[Monkeylegend]

I had a colleague who has a BTL in Birmingham and the company responsible for the service contract were not doing a lot of what they were contracted to do. The residents /landlords of the apartment block collectively stopped paying the service charge.

The contracting company took them to court on the basis that the residents had breached the terms of their contract and they had to stop any maintenance because the residents had stopped paying thus turning the situation around full circle, outflanking the residents.

The judge agreed with the service company and ordered each resident to pay 2 years worth of service charges plus costs as a lump sum, saying that although morally correct, the residents had a legal obligation to continue to pay and challenge the service company on that basis. My colleague had to find abut £8000 which he didn't have within 30 days, whereas continuing to pay whilst challenging would have cost him half that.

Moral of the story, stick to the legal contract if you wish to win a court case.

[bladebloke]

surveyor said:

Service charge is highly likely to be referred to as additional rent within the lease definitions, for precisely this scenario.

Your friend should look up relief from forfeiture and take expert experienced (in this area) legal advice immediately. Do not go to a conveyancing solicitors.

This - all of it. The service charge will almost certainly be reserved as an additional rent if the lease was properly drafted.