SCHEDULES

SCHEDULE 10Service charges: minor and consequential amendments

I115Trust of service charges paid by only one tenant

1

Section 42 of the 1987 Act (service charge contributions of tenants to be held in trust) is amended as follows.

2

In subsection (1)—

a

after “costs” insert “ , or the tenant of a dwelling may be required under the terms of his lease to contribute to costs to which no other tenant of a dwelling may be required to contribute, ”,

b

at the end of the definition of “the contributing tenants” insert “ and “the sole contributing tenant” means that tenant; ”, and

c

in the definition of “the payee”, for “under the terms of their leases” substitute “ , or that tenant, under the terms of their leases, or his lease ”.

3

In subsection (2), after “tenants” insert “ , or the sole contributing tenant, ”.

4

In subsection (3), insert at the end “ , or the person who is the sole contributing tenant for the time being. ”

5

In subsection (4), insert at the end “ or the sole contributing tenant shall be treated as so entitled to the residue of any such fund. ”

6

In subsection (6), for “a contributing tenant” substitute “ any of the contributing tenants ”.

7

In subsection (7), for “If after the termination of any such lease there are no longer any contributing tenants,” substitute “ On the termination of the lease of the last of the contributing tenants, or of the lease of the sole contributing tenant, ”.

8

In subsection (8)—

a

for “a contributing tenant” substitute “ any of the contributing tenants, or the sole contributing tenant, ”, and

b

after “his lease” insert “ (whenever it was granted) ”.

9

In subsection (9)—

a

after “so created” insert “ , in the case of a lease of any of the contributing tenants, ”, and

b

insert at the end “ or, in the case of the lease of the sole contributing tenant, before the commencement of paragraph 15 of Schedule 10 to the Commonhold and Leasehold Reform Act 2002. ”