Schedules

Schedule 8Remediation costs under qualifying leases etc

I19No service charge payable for legal or professional services relating to liability for relevant defects

1

No service charge is payable under a qualifying lease in respect of legal or other professional services relating to the liability (or potential liability) of any person incurred as a result of a relevant defect.

F11A

Sub-paragraph (1) does not apply to the extent that the service charge is payable to a management company in respect of legal or other professional services provided to the company in connection with an application or possible application by the company for or relating to a remediation contribution order under section 124.

2

In this paragraph the reference to services includes services provided in connection with—

a

obtaining legal advice,

b

any proceedings before a court or tribunal,

c

arbitration, or

d

mediation.

F23

In sub-paragraph (1A) “management company” means—

a

a resident management company, or

b

an RTM company within the meaning of Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (right to manage).

4

Resident management company” means a body corporate which is party to a lease of a building where—

a

the body corporate is limited by guarantee and the members of that body are tenants under leases of dwellings in the building (“leaseholders”), or

b

the majority of the shares of the body corporate are held by leaseholders.