Service charges and other issues
A guide to service charges, administration charges, ground rent, recognised tenants associations and forfeiture.
A leaseholder in Brentwood, Essex consulted LEASE after receiving a demand for ground rent, on which an administration charge of £117.50 was levied; the latter subsequently increasing to £263.
LEASE advised that the demand failed to comply with the requirements of Section 166 of the Commonhold and Leasehold Reform Act 2002 which states that before ground rent is payable, a notice in a prescribed form must be served on the leaseholder giving them 30 to 60 days to pay. In the absence of such a statutory notice the landlord could not demand payment of an administration charge and withdrew the charge.
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