Paragraph 7 Annual limit on service chargesI1

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 relevant service charge which would otherwise be payable under a qualifying lease 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 in the period of 12 months ending with the day on which the service charge fell due,

does not exceed one tenth of the permitted maximum.

(2)

“the permitted maximum” means the permitted maximum as defined by paragraph 6 in relation to the lease;
“relevant service charge” means a service charge under a qualifying lease in respect of a relevant measure relating to any relevant defect.

Annotations