Many leases allow the landlord to claim an administration charge – for example, for providing information about subletting a property.
If you are uncertain about an administration charge, ask your landlord to highlight the clause in the lease which allows them to charge this. .
If the lease has such a clause, it should also tell you whether the charge is variable or fixed.
Challenging a variable charge
If the charge is variable, you may apply to the First-tier Tribunal (Property Chamber), or the Leasehold Valuation Tribunal if the property is in Wales, for a determination as to whether the amount charged is reasonable and whether you are required to pay it.
Challenging a fixed charge
If the charge is fixed by the lease or a formula in the lease, you may apply to the tribunal to vary the lease, on the grounds that the charge or formula is unreasonable. If you are successful, the tribunal may make an order to vary the lease to a reasonable charge or formula, either as requested by you or as it finds appropriate.
When you cannot apply
Please note that you cannot apply to the tribunal if you have agreed or admitted the administration charges, or the case is under arbitration or another court or tribunal has decided on the issue already.
Other ways to settle a dispute
You do not have to go to tribunal to settle your dispute about an administration charge. Sometimes you may be able to come to an informal agreement with the landlord about what a reasonable charge would be.
You could also try mediation through an impartial third party to help you reach an agreement.
Going to tribunal is a last resort, for which you should get legal advice.
More information you might find useful:
- Service Charges and other issues – Administration charges: advice guide
- Application to the First-tier Tribunal (Property Chamber): advice guide
- Application Form – Application for a determination as to liability to pay an administration charge or for the variation of a fixed administration charge: download
- I am in dispute with my landlord but I do not want to go to Court or Tribunal. Is there an alternative?: FAQ
- More Frequently Asked Questions on Administration Charges
- Resolutions for service charge disputes
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