Service charges

F120JLimitation of variable service charges: non-litigation costs of enfranchisement etc

(1)

Non-litigation costs incurred, or to be incurred, by a landlord in connection with a relevant claim are not to be regarded as relevant costs to be taken into account in determining the amount of a variable service charge payable by a tenant who is a non-participating tenant in relation to that claim.

(2)

A lease, contract or other arrangement is of no effect to the extent it makes provision to the contrary.

(3)

In this section and section 20K—

“the 1967 Act” means the Leasehold Reform Act 1967;

“the 1993 Act” means the Leasehold Reform, Housing and Urban Development Act 1993;

“the 2002 Act” means the Commonhold and Leasehold Reform Act 2002;

“non-litigation costs” means costs incurred, or to be incurred, other than in connection with proceedings before a court or tribunal;

“non-participating tenant”, in relation to a relevant claim, means a tenant who is not a participating tenant;

“participating tenant”, in relation to a relevant claim, means a tenant who—

(a)

in the case of a claim under Part 1 of the 1967 Act or Chapter 1 or 2 of Part 1 of the 1993 Act, is making the claim;

(b)

in the case of a claim under Chapter 1 of Part 2 of the 2002 Act, is or has been a member of the RTM company making the claim;

“relevant claim” means—

(a)

a claim under Part 1 of the 1967 Act (enfranchisement and extension of leases of houses);

(b)

a claim under Chapter 1 or 2 of Part 1 of the 1993 Act (enfranchisement and extension of leases of flats);

(c)

a claim under Chapter 1 of Part 2 of the 2002 Act (right to manage);

“RTM company” has the same meaning as in Chapter 1 of Part 2 of the 2002 Act (see section 71 of that Act).

(4)

For provision about when a participating tenant is and is not liable in respect of non-litigation costs in relation to a relevant claim, see—

(a)

section 19A of the 1967 Act;

(b)

section 89A of the 1993 Act;

(c)

section 87A of the 2002 Act.