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Commonhold and Leasehold Reform Act 2002

Meaning of ‘administration charge’

397.Paragraph 1(1) defines ‘administration charge’ for the purposes of Part 1 of the Schedule.  This covers charges payable for approvals required as a condition of a lease, for the provision of information to leaseholders or other parties (e.g.  prospective purchasers), penalty charges for late payment of rent or other charges, or charges in connection with a breach (or alleged breach) of a covenant or condition of a lease.  Paragraph 1(5) provides a power to amend this definition by order.

398.Paragraph 1(3) defines a ‘variable administration charge’.  This is any administration charge where neither the sum nor a formula for calculating the sum is specified in the lease.

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