---
title: "Administration Charges: What Landlords Can Charge"
url: https://manage.management/blog/administration-charges-what-landlords-can-charge-and-how-to-challenge-them
description: "Administration charges explained: what landlords can charge, the Schedule 11 reasonableness test, how to challenge a fee and the 2027 changes."
author: "Franklin Baeza"
published: 2026-11-12T06:34:24.000Z
updated: 2026-11-12T07:36:33Z
categories: ["Service Charges","Governance & Compliance"]
publisher: Manage.Management
language: en-GB
---

# Administration Charges: What Landlords Can Charge

Administration charges explained: what landlords can charge, the Schedule 11 reasonableness test, how to challenge a fee and the 2027 changes.

An administration charge is any fee a leaseholder pays, on top of rent, for approvals, information or documents, late payment or an alleged breach of the lease, and under paragraph 2 of Schedule 11 to the Commonhold and Leasehold Reform Act 2002 a variable administration charge is payable only to the extent that it is reasonable. Every demand must currently come with a prescribed summary of rights, or the leaseholder can withhold payment. From 1 April 2027, landlords will also need a court or tribunal order before they can pass their legal costs to a leaseholder as an administration charge.

This guide explains what counts as an administration charge, what landlords can and cannot charge, how to challenge a fee, and what changes in 2027. It is written by Manage.Management, the UK block management platform for RTM and RMC directors, leaseholders and managing agents. It covers leasehold flats in England. It is general information, not legal advice.

## Key takeaways

- Schedule 11 to the Commonhold and Leasehold Reform Act 2002 covers four types of fee: approvals, information and documents, late payment, and breaches of the lease.
- A variable administration charge, one not fixed by the lease or calculated by a formula in it, is payable only to the extent that it is reasonable.
- A demand must be accompanied by the prescribed summary of rights. If it is not, the leaseholder can withhold payment and late payment penalties do not run.
- Leaseholders can ask the First-tier Tribunal whether a charge is payable, before or after paying, and can apply to vary a lease whose fixed fee or formula is unreasonable.
- From 1 April 2027, leaseholders are not liable for a landlord's litigation costs as an administration charge unless a court or tribunal orders otherwise.
- From 1 November 2027, landlords must publish an administration charge schedule, and a charge is payable only if it appeared on the schedule for the 28 days ending with the day it is demanded.

## What is an administration charge?

An administration charge is an amount a leaseholder pays, directly or indirectly, as part of or in addition to rent, for one of four purposes set out in paragraph 1 of Schedule 11. It is separate from the service charge, which pays for running the building.

The four types, with common examples, are:

| Type under paragraph 1(1) | Common examples | Main rule that applies |
| --- | --- | --- |
| (a) Approvals under the lease, or applications for them | Consent to sublet, consent to alterations, licence to keep a pet | Reasonableness, if the amount is not fixed by the lease |
| (b) Providing information or documents | Pre-sale enquiry packs, copies of the lease or insurance, notices of assignment | Reasonableness, if the amount is not fixed by the lease |
| (c) Failing to pay by the due date | Late payment fees, arrears letters, debt collection costs | Reasonableness if variable, plus the litigation cost limits from 1 April 2027 |
| (d) A breach or alleged breach of the lease | Solicitors' letters, Section 146 notice costs, inspection fees | Reasonableness if variable, plus the litigation cost limits from 1 April 2027 |

The definition also covers charges made by a person who is party to the lease other than the landlord or tenant, such as a residents' management company in a three-party lease. If your RMC or RTM company charges fees for consents or information, treat those fees as subject to the same rules.

## What can a landlord charge, and what makes a charge unreasonable?

A landlord can only charge what the lease allows, and a variable charge only to the extent that it is reasonable. If the lease does not give a right to charge for something, no fee is due, whatever the landlord's published price list says.

The law draws a line between two kinds of charge:

- Variable administration charges. These are fees the lease allows but does not fix, such as "the landlord's reasonable costs" of granting consent. Under paragraph 2 they are payable only to the extent that the amount is reasonable. In practice that means the fee should reflect the work actually done and what a competent professional would charge for it.
- Fixed charges. Where the lease states an amount or a formula, the reasonableness test in paragraph 2 does not apply. Instead, any party to the lease can ask the tribunal under paragraph 3 to vary the lease on the ground that the fee or formula is unreasonable.

Paragraph 2A also bans any administration charge connected with paying a peppercorn ground rent under the Leasehold Reform (Ground Rent) Act 2022. Our [guide to ground rent reform](https://manage.management/blog/ground-rent-reform-what-leaseholders-still-need-to-watch) explains which leases that covers.

## What must an administration charge demand include?

Today, every demand for an administration charge must be accompanied by a summary of tenants' rights and obligations. The form is set by the [Administration Charges (Summary of Rights and Obligations) (England) Regulations 2007](https://www.legislation.gov.uk/uksi/2007/1258/made), which require the heading "Administration Charges – Summary of tenants' rights and obligations" and print of at least 10 point.

If the summary is missing, paragraph 4 of Schedule 11 lets the leaseholder withhold payment, and any lease terms about late payment do not apply while the charge is withheld. The demand must also give the landlord's name and an address in England and Wales under [section 47 of the Landlord and Tenant Act 1987](https://www.legislation.gov.uk/ukpga/1987/31/section/47), which applies to administration charges as well as service charges. Once a compliant demand is served, the charge becomes payable from that point.

## How do you challenge an administration charge?

You can ask the First-tier Tribunal (Property Chamber) to decide whether a charge is payable, by whom, how much, when and how. Under paragraph 5 you can do this whether or not you have already paid, and paying does not count as agreeing to the charge.

A practical sequence:

1. Check the lease. Find the clause that allows the charge. If there is none, ask the landlord to point to it in writing.
2. Check the demand. Make sure it came with the prescribed summary of rights and the landlord's name and address. If not, you can withhold payment until a compliant demand arrives.
3. Ask for a breakdown. For a variable charge, ask what work was done, by whom and at what rate. A flat fee with no explanation is hard to defend as reasonable.
4. Put your objection in writing. Explain why the amount is unreasonable, with evidence such as quotes for similar work. Keep copies of everything.
5. Consider paying under protest. If a sale or consent depends on payment, you can pay and still challenge the charge later, because paragraph 5(5) says payment alone is not an admission.
6. Apply to the tribunal. Apply under paragraph 5 for a determination, or under paragraph 3 to vary a lease with an unreasonable fixed fee. Our [practical guide to the First-tier Tribunal](https://manage.management/blog/first-tier-tribunal-for-leaseholders-when-and-how-to-use-it) explains the forms and process.

You cannot use paragraph 5 for a matter you have already agreed or admitted, one decided by a court, or one referred to arbitration under an agreement made after the dispute arose. The approach is similar to challenging a service charge, set out in our guide on [how to challenge an unreasonable service charge](https://manage.management/blog/service-charge-disputes-how-to-challenge-an-unreasonable-bill).

## Can a landlord add legal costs as an administration charge?

Yes for now, if the lease allows it, but leaseholders can ask the court or tribunal to reduce or cancel the charge. From 1 April 2027, the starting point reverses: leaseholders are not liable for the landlord's litigation costs as an administration charge unless the landlord obtains an order.

The current route is paragraph 5A of Schedule 11, added in 2017, which lets a leaseholder apply for an order reducing or extinguishing an administration charge for litigation costs if that is just and equitable. [Section 62 of the Leasehold and Freehold Reform Act 2024](https://www.legislation.gov.uk/ukpga/2024/22/section/62) replaces it with new paragraphs 5B and 5C:

- The general rule in paragraph 5B is that a tenant is not liable to pay an administration charge for the landlord's litigation costs.
- A landlord can apply for an order disapplying that rule, and the court or tribunal can grant it only if it is just and equitable.
- No such order can be made for costs of enfranchisement, lease extension or right to manage proceedings.
- A lease term that conflicts with the new rule has no effect.
- Paragraph 5C lets ministers set exceptions or suspend the rule for certain landlords.

The [Leasehold and Freehold Reform Act 2024 (Commencement No. 4 and Saving Provision) (England) Regulations 2026](https://www.legislation.gov.uk/uksi/2026/1128/contents/made) bring section 62 fully into force on 1 April 2027, and the new rules do not apply to proceedings issued before that date. The government says one more set of regulations on litigation costs will be laid before the end of 2026, and its consultation response promised a temporary flexibility for resident-led companies such as RMCs and RTM companies. Our post on the [confirmed timetable for the 2027 service charge and legal cost reforms](https://manage.management/blog/leasehold-reform-timetable-confirmed-service-charge-insurance-and-legal-cost-changes-from-2027) sets out the full package.

Costs linked to a breach of the lease, including Section 146 notices, are often charged as administration charges. Our guide to [forfeiture of a lease](https://manage.management/blog/forfeiture-of-lease-what-leaseholders-must-know-about-risk) explains why those costs matter if a dispute escalates.

## What changes for administration charges in 2027?

Two changes start in 2027 in England: the litigation cost limits from 1 April 2027, and a new duty to publish an administration charge schedule from 1 November 2027. The regulations to put these into effect were due to be laid in Parliament on 12 November 2026, according to the [government's announcement on 11 November 2026](https://www.gov.uk/government/news/flat-owners-handed-massive-boost-to-fight-rip-off-service-charges).

Under [section 61 of the Leasehold and Freehold Reform Act 2024](https://www.legislation.gov.uk/ukpga/2024/22/section/61), new paragraph 4A of Schedule 11 requires every landlord to produce and publish a schedule of the administration charges it considers may be payable, with each amount or the method for working it out. The landlord must give each tenant the current schedule and publish any revised version.

The key rule is in paragraph 4A(6) and (7): an administration charge is payable only if its amount, or the method for setting it, appeared on a published schedule for the 28 days ending with the day the charge is demanded. A fee that is not on the schedule, or was added at short notice, will not be payable.

If a landlord fails to comply, paragraph 4B lets a tenant apply to the tribunal, which can order compliance within 14 days and award damages of up to £1,000. Section 61 also removes paragraph 4, so the 2007 summary of rights requirement ends when the schedule duty begins. Regulations will set the form and content of the schedule, so check the final rules before November 2027.

## What should RMC and RTM directors do now?

Directors of resident-led companies should list every fee the company charges and check that the lease allows it. Then set each fee at a level you could justify to a tribunal.

- Make a fee list now. Record each charge, the lease clause behind it and how the amount is set. This becomes the starting point for your administration charge schedule in 2027.
- Fix your templates. Make sure every administration charge demand carries the prescribed summary and the company's name and address until the rules change.
- Review legal cost clauses. Before taking enforcement action after 1 April 2027, assume you will need an order to recover costs from the leaseholder.
- Ask your managing agent. If an agent charges leaseholders directly for consents or sale packs, ask for its fee list and its plan for the 2027 schedule. Check which tasks are already covered by the management fee.

Keeping demands, fee lists and leaseholder records in one place makes these rules easier to follow. The [Manage.Management service charge tools](https://manage.management/features/service-charges) handle demands and collection for self-managed blocks, and leaseholders can read a plain summary of their rights on our [leaseholder rights page](https://manage.management/leaseholder-rights).

## Frequently asked questions

### What counts as an administration charge in a leasehold flat?

An administration charge is a fee paid on top of rent for one of four things listed in paragraph 1 of Schedule 11 to the Commonhold and Leasehold Reform Act 2002: approvals under the lease, providing information or documents, late payment, or a breach or alleged breach of the lease. Common examples are consent to sublet, pre-sale enquiry packs, arrears letters and solicitors' letters about breaches.

### Can I refuse to pay an administration charge?

You can withhold an administration charge if the demand did not include the prescribed summary of rights, and late payment terms in the lease do not apply while you withhold it. You can also challenge the amount at the First-tier Tribunal if it is unreasonable. Simply refusing to pay a properly demanded, reasonable charge can lead to arrears action, so put any objection in writing.

### Is there a cap on administration charges?

There is no fixed cap in pounds. Instead, a variable administration charge is payable only to the extent that it is reasonable, under paragraph 2 of Schedule 11. If the lease fixes the fee, you can apply to the tribunal to vary the lease if the amount is unreasonable. From 1 November 2027, a charge must also appear on the landlord's published schedule for 28 days before it is demanded.

### Can I challenge an administration charge after I have paid it?

Yes. Paragraph 5 of Schedule 11 lets you apply to the First-tier Tribunal whether or not you have paid, and paragraph 5(5) says that paying does not count as agreeing to the charge. This means you can pay a fee to keep a sale or consent moving and still challenge it later. The exception is where you have agreed or admitted the amount in some other way.

### Do the rules apply to RMCs and RTM companies?

The Schedule 11 definition covers charges payable to the landlord or to a person who is party to the lease other than the landlord or tenant, which includes many RMCs. Resident-led companies that charge for consents, information or arrears should follow the same rules on reasonableness and demands. Check the 2027 regulations for how the schedule duty and litigation cost exceptions apply to RMCs and RTM companies.

## Administration charges: the short answer

Landlords can only charge administration fees the lease allows, variable fees must be reasonable, and every demand needs the prescribed summary of rights. Leaseholders can challenge a fee at the First-tier Tribunal before or after paying. From April 2027, legal costs need an order, and from November 2027 every fee must sit on a published schedule for 28 days before it is demanded.

Last reviewed: 12 November 2026 by Franklin Baeza, Manage.Management. This article is general information for England and Wales, not legal advice. Check the current position with a qualified adviser before acting.

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Source: [Administration Charges: What Landlords Can Charge](https://manage.management/blog/administration-charges-what-landlords-can-charge-and-how-to-challenge-them) on the Manage.Management blog.