Is there any legal requirement to give notice of a penalty for non payment of a service charge on a long leasehold flat (999 years)? the Commonhold and Leasehold Reform Act 2002 seems to imply there is. There is provision in the lease for the freeholder to decide the level of a penalty and the management had set the interest charge to 10% prior to the breach.
Situation is that interest was added to the service charge without any warning or any time period for remedy. Is this unlawful?
I understand that Newham Council –v- Khatun established the precedent that Tenancy Agreements are subject to the provisions of the Unfair Terms in Consumer Contracts Regulations 1999. Does this mean that the above penalty is unlawful by virtue of the true cost to the freeholder is pennies in interest?