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Administration Charges

Under the Commonhold Leasehold Reform Act 2002 notice has to be given where an administration charge is made. This really meant to cover long leasehold properties e.g. owner/occupied flats. The landlord cannot recover the administration charge without giving the notice. However it also applies to short term residential lets for assured tenancies/assured shorthold tenancies. This was really an unintended consequence. Tenants under short term lets are protected anyway under the consumer legislation contained in the Unfair Contract Terms Regulations. There is Office of Fair Trading guidance on this. Assured tenancy is not exceeding seven years in length (including assured shorthold tenancies) should be exempt from this requirement including periodic tenancies e.g. monthly tenancies. 

Why does this matter?

This is unnecessary bureaucracy

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