Tribunal Rejects Administrative Fees for Ground Rent Collection

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : HAV/OOHP/LAC/2025/0010 Property : 8 [ADDRESS], [POSTCODE] Applicant: [redacted] : none Respondent : [redacted] : [RESPONDENT] of [NAME] : Determination of the liability to pay service charges under section 27A of the Landlord and Tenant Act 1985 Tribunal members : [NAME] : Havant Justice Centre, [ADDRESS], Havant, Portsmouth. Date of determination/ decision : 15 January 2026

DECISION

DETERMINATION (1) This is a paper determination made on 15 January 2026. The Applicant is a leasehold of premises at 8 [ADDRESS], [POSTCODE] (The premises). The [RESPONDENT], is the freeholder of the premises. Their managing agents are [COMPANY]. The [NAME] was dated 15 July 2025.

2 (2) The Applicant challenges the payability of an administration charge connected with the collection of ground rent. From the [NAME], demands have been issued for the years 2022, 2023, 2024, 2025. The Applicant requests a determination on the payability of the “charges”. The demand includes the following phrase; “admin fee for rent collection.” The ground rent is £200.00, and each admin fee is said to be £60.00. (3) The Applicant says the admin costs are not payable under the lease and are not payable under the lease and are not administration charges as defined under paragraph 5A of Sched 11 of the Commonhold and Leasehold Reform Act 2002 (The Act). The Respondents appear to have taken no part in these proceedings. Determination (4) The admin costs for the collection of rent are not payable. Reasons (5) There is no provision in the lease that allows for the collection of admin costs for the collection of rent. In addition, the costs do not come within the definition of administration charges under the Act. (6) The demands were issued by the Respondents after the Applicants obtained the Right to Manage in December 2020. In addition, the demands were issued notwithstanding a number of previous Tribunal decisions on similar facts finding that admin charges of this type were not recovered. It is hoped that the Respondents may in future consider carefully whether they are entitled to administration charges before imposing them. Additional relief (7) The Tribunal exercises its discretion under paragraph 5A of Schedule 11 to the 2002 Act as the Applicant has been entirely successful. The Respondents are also required to repay the Applicants their [NAME] fee of £100.

3 Rights of appeal By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the Tribunal is required to notify the parties about any right of appeal they may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written [NAME] for permission must be made to the First- tier Tribunal at the regional office which has been dealing with the case. The [NAME] for permission to appeal must arrive at the regional office within 28 days after the Tribunal sends written reasons for the decision to the [NAME]. If the [NAME] is not made within the 28-day time limit, such [NAME] must include a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed, despite not being within the time limit. The [NAME] for permission to appeal must identify the decision of the Tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking. If the Tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).