‘Briefly, the issue was that lease clauses for some (but not all) holiday chalet leases in the Gower effectively provided for a 10% per annum increase in fixed charges for maintenance etc. The compound effect of this was that leases that started with a £90 pa service charge in 1974 would have a charge of £1,025,004 pa by the end of the term in 2072. Even by 2012, the amount payable was considerably in excess of the actual costs to the landlord of the services.’
Nearly Legal, 1st January 2016
Source: www.nearlylegal.co.uk
