The 2002 Act defines certain fees made by landlords and managing agents for things in addition to the service charge and rent as administration charges.
If the fee you levy is defined as an administration charge then leaseholders have the right to challenge its reasonableness and payability at a Tribunal and must receive a summary of their rights and obligations with any demand.
Synopsis
The Appendix contains the summary of rights for England only as amended in July 2013
If you demand a fee for an item defined as an administration charge, the summary of rights and obligations you currently send at the same time as the demand will need to contain wording that is prescribed in regulations.
If you do not send a summary with a demand for an administration charge, the leaseholder has the right to withhold payment of the charge until you do so.
From June 2009 the name of the Lands Tribunal in paragraph 7 of the summary was amended to the ‘Upper Tribunal’, but not so far in Wales.
From 1st July 2013 the name of the Leasehold Valuation Tribunal in the summary was removed but not yet in Wales.
Managing agents should be aware that further reforms to service charge administration and transparency are set to be introduced through the Leasehold and Freehold Reform Act 2024 (LAFRA).
Covering Topics
- Overview
- The Prescribed Summary
- Definition Of Administration Charges
- So What Are Administration Charges?
- What If I Fail To Send Summaries?
- Powers Of Tribunals And Administration Charges
- Further Information
- Appendix
