Leasehold and Freehold Reform Act 2024

83 Meaning of “administration charge”

(1) For the purposes of this Part, “administration charge” means an amount payable, directly or indirectly, by an owner of a dwelling—

(a) for or in connection with—

(i) the grant of approvals in connection with a relevant obligation, or

(ii) applications for such approvals;

(b) for or in connection with the provision of information or documents by or on behalf of an estate manager;

(c) for or in connection with—

(i) the sale or transfer of land to which a relevant obligation relates, or

(ii) the creation of an interest in or right over that land;

(d) in respect of a failure by the owner to make a payment by the due date under a relevant obligation;

(e) in connection with a breach (or alleged breach) of a relevant obligation.

(2) But “administration charge” does not include an amount payable by a tenant of a dwelling in a case where all of the following conditions are met—

(a) the tenant’s lease specifies that only a person who has attained a minimum age may occupy the dwelling;

(b) the amount is payable under a term of the tenant’s lease or is otherwise payable in connection with the tenant’s lease;

(c) the amount is payable if—

(i) the tenant’s lease is granted, assigned or terminated,

(ii) a lease of the dwelling which is inferior to the tenant’s lease is granted, assigned or terminated, or

(iii) there is a change in the person or persons occupying the dwelling;

(d) the amount is fixed or is calculated by a method determinable in advance;

(e) any other conditions specified in regulations made by the appropriate authority.

(3) The appropriate authority may by regulations make provision (including provision amending this Act) so as to amend the definition of “administration charge”.

(4) A statutory instrument containing regulations under this section (whether alone or with other provision) is subject to the affirmative procedure.