Duke settles charges row

5 April 2012

A dispute between Britain's richest man and residents of one of the country's top addresses over service charges has been resolved, it emerged today.

Three of the Duke of Westminster's property companies were challenged at a tribunal last month by leaseholders who live in Eaton Square, central London, part of his vast portfolio of properties in the capital.

The residents were issued with a £310,000 bill for a year's repairs, decoration and maintenance, to be split between 17 of them, the hearing heard.

One resident faced a £45,000 service charge for a two-bedroom flat, it was claimed.

It was also alleged at the central London hearing that another, living in a four-bed apartment, had been asked to pay £60,000.

But today, a spokeswoman for Grosvenor Investments Ltd, one of the companies involved, said they had come to an agreement with residents.

The dispute arose because exceptional charges for a security system and external decoration had been added to the usual yearly bill, pushing up the amount, she said.

She said: "We acknowledge and regret the fact that we have not always communicated effectively with our residents, particularly over specific projects relating to this year's service charges.

"As a measure of goodwill, we have agreed to bear the full capital costs associated with the installation of a new security system in Eaton Square which, by the terms of their leases, should properly be borne by the residents.

"We have also agreed to defer and review how and when the external redecorations take place in the future."

The residents represented themselves at the hearing and were led by 44-year-old interior designer Vanessa Brady, who lives in a two-bedroom top-floor apartment in the square.

As well as Grosvenor Investments Ltd, the hearing also involved Eaton Square Properties Ltd and Belgravia Estate Services.