Flat owners have won a landmark victory against a housing association after being forced to pay thousands of pounds in service charges for luxury amenities they were not permitted to use.
Notting Hill Genesis (NHG), the housing provider responsible for Viridian Apartments in Battersea, London, charged leaseholders between £4,770 and £6,200 a year for services including a gym, concierge and communal garden, in a neighbouring block of flats, despite having no access to them.
The housing association argued that the residents, who had purchased their properties on the shared ownership affordable housing scheme, had “benefited” from a well-maintained estate and were therefore liable for the charges, which had risen by up to 265pc since 2011. But the shared ownership residents had their own separate access to the development via a “poor door”.
In a court ruling, Judge Elizabeth Cooke said that the leaseholders could not be required to pay service charges for parts of the development that fell outside the scope of their leases and which they were not entitled to use.
The ruling is believed to be the first time a group of leaseholders has successfully challenged service charges for facilities accessible only to other residents at an Upper Tribunal, potentially paving the way for similar claims against excessive fees.
