Administration charges
I1I2I318Administration 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—
2ANo administration charge payable for certain rents
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.”