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Leaseholder administration charges

This content applies to England

An amount payable under the lease for administration.

An administration charge is an amount payable by the leaseholder, directly or indirectly, in respect of:[1]

  • an approval under the lease, for example to sublet or carry out works
  • the provision of information or documents
  • her/his failure to make a due payment
  • her/his breach of a lease covenant.

An administration charge must be reasonable in order for the landlord to recover the charge, and a demand for payment must be accompanied by a summary of the leaseholder’s rights and obligations in respect of administration charges. If the summary is not included, the charge is not regarded as being payable unless, and until, the demand is made with the summary.[2]

For proceedings that began on or after 6 April 2017, where the lease specifies that the costs of legal proceedings incurred by the landlord are to be paid as an administrative charge by the leaseholder, the leaseholder can apply to the specific court or tribunal to exclude some or all of such costs from the amount demanded.[3]

[1] para 1 Sch.11 Commonhold and Leasehold Reform Act 2002; Proxima GR Properties Ltd v McGhee [2014] UKUT 59 (LC).

[2] paras 2 to 4 Sch.11 Commonhold and Leasehold Reform Act 2002.

[3] para 5A Sch.11 Commonhold and Leasehold Reform Act 2002 as inserted by s.131 Housing and Planning Act 2017; Housing and Planning Act 2016 (Commencement No. 5, Transitional Provisions and Savings) Regulations 2017 SI 2017/281.

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