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Commonhold and Leasehold Reform Act 2002

Reasonableness of administration charges

399.Paragraph 2 provides a requirement that variable administration charges are only payable to the extent that they are reasonable.

400.Paragraph 3 provides a right for any party to a lease to apply to a LVT for the variation of a fixed administration charge.  Such an application can be made on the grounds that either a fixed sum specified in the lease or a formula specified in the lease is unreasonable.  Where a tribunal agrees that a fixed administration charge is unreasonable, it can order the lease to be changed accordingly.

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