Paragraph 5 Limit on service charge in other casesI1

England and Wales

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Sch. 8 para. 6(5) word omitted by Leasehold and Freehold Reform Act 2024 Sch. 9 para. 19(a)
Sch. 8 para. 8 word substituted by Leasehold and Freehold Reform Act 2024 Sch. 9 para. 19(b)(i)
Sch. 8 para. 8 words substituted by Leasehold and Freehold Reform Act 2024 Sch. 9 para. 19(b)(ii)
Sch. 8 para. 17 omitted by Leasehold and Freehold Reform Act 2024 Sch. 11 para. 29(b)

(1)

A service charge which would otherwise be payable under a qualifying lease in respect of a relevant measure relating to any relevant defect is payable only if (and so far as) the sum of—

(a)

the amount of the service charge, and

(b)

the total amount of relevant service charges which fell due before the service charge fell due,

does not exceed the permitted maximum.

(2)

In this paragraph “relevant service charge” means a service charge under the lease in respect of a relevant measure relating to any relevant defect that—

(a)

fell due in the pre-commencement period, or

(b)

falls due after commencement.

(3)

In sub-paragraph (2) “the pre-commencement period” means the period—

(a)

beginning 5 years before commencement or, if later, on the day the relevant person became the tenant under the qualifying lease, and

(b)

ending with commencement.

“The relevant person” means the person who was the tenant under the qualifying lease at commencement.

(4)

In this paragraph—

“commencement” means the time this paragraph comes into force;
“the permitted maximum”: see paragraph 6.

Annotations

Commencement

I1: Sch. 8 para. 5 in force at 28.6.2022, see s. 170(3)(a)