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Admin Charges

SALES INFORMATION CHARGES AS ADMINISTRATION CHARGES

This report ( https://www.leaseholdknowledge.com/telegraph-reports-rip-off-sales-packs ) set me musing; it says the “The packs are required by housebuyers’ conveyancers, and because they can only be produced by freeholders, the seller is forced to pay whatever price is demanded – or risk the sale falling through.“. Sch 11, para 1 of the Leasehold & Commonhold Reform Act 2002 provides

‘administration charge’ means an amount payable by a tenant of a dwelling as part of or in addition to the rent which is payable, directly or indirectly—
(a) for or in connection with the grant of approvals under his lease, or applications for such approvals,
(b) for or in connection with the provision of information or documents by or on behalf of the landlord …“,
Sch 11 then provides a mechanism for challenging such charges.

There are no cases reported on Westlaw where Sch 11 has been used to challenge charges by freeholders for sales information  however.

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