Section 20J — Landlord and Tenant Act 1985: Limitation of variable service charges: non-litigation costs of enfranchisement etc

Limitation of variable service charges: non-litigation costs of enfranchisement etc 20J 1 Non-litigation costs incurred, or to be incurred, by a landlord in connection with a relevant claim are not to be regarded as relevant costs to be taken into account in determining the amount of a variable service charge payable by a tenant who is a non-participating tenant in relation to that claim.

2 A lease, contract or other arrangement is of no effect to the extent it makes provision to the contrary.

3 In this section and section 20K — “ the 1967 Act ” means the Leasehold Reform Act 1967; “ the 1993 Act ” means the Leasehold Reform, Housing and Urban Development Act 1993; “ the 2002 Act ” means the Commonhold and Leasehold Reform Act 2002; “ non-litigation costs ” means costs incurred, or to be incurred, other than in connection with proceedings before a court or tribunal; “ non-participating tenant ”, in relation to a relevant claim, means a tenant who is not a participating tenant; “ participating tenant ”, in relation to a relevant claim, means a tenant who—

in the case of a claim under Part 1 of the 1967 Act or Chapter 1 or 2 of Part 1 of the 1993 Act, is making the claim; in the case of a claim under Chapter 1 of Part 2 of the 2002 Act, is or has been a member of the RTM company making the claim; “ relevant claim ” means—

a claim under Part 1 of the 1967 Act (enfranchisement and extension of leases of houses); a claim under Chapter 1 or 2 of Part 1 of the 1993 Act (enfranchisement and extension of leases of flats); a claim under Chapter 1 of Part 2 of the 2002 Act (right to manage); “ RTM company ” has the same meaning as in Chapter 1 of Part 2 of the 2002 Act (see section 71 of that Act).

4 For provision about when a participating tenant is and is not liable in respect of non-litigation costs in relation to a relevant claim, see—

a section 19A of the 1967 Act;

b section 89A of the 1993 Act;

c section 87A of the 2002 Act.