Leasehold Reform (Ground Rent) Act 2022

Administration charges

18 Administration charges for peppercorn rents

(1) Schedule 11 to the Commonhold and Leasehold Reform Act 2002 (administration charges) is amended as follows.

(2) For the heading of Part 1 substitute “Administration charges”.

(3) After paragraph 2 insert—

“No administration charge payable for certain rents

2A (1) No administration charge is payable for, in connection with or in respect of, the payment of a relevant rent.

(2) A “relevant rent” is a rent (or any part of a rent) which, by virtue of the Leasehold Reform (Ground Rent) Act 2022, is permitted only to be a peppercorn rent.

(3) “Peppercorn rent” has the same meaning as in that Act (see section 4(3) of that Act).”

(4) Before paragraph 3 insert the heading “Application for order varying lease”.

(5) In paragraph 3(1)—

(a) omit the “or” at the end of paragraph (a);

(b) at the end of paragraph (b) insert “, or

“(c) an administration charge specified in the lease is not payable because of paragraph 2A.”

(6) In section 24 of the Landlord and Tenant Act 1987 (appointment of manager by tribunal)—

(a) in subsection (2)(aba) after “charges” insert “or prohibited administration charges”;

(b) at the end of subsection (2B) insert “, and “prohibited administration charge” means an administration charge which is not payable because of paragraph 2A of that Schedule.”