ABSTRACT
This chapter proposes to give an overview of the position on costs recovery following the impact of the 2002 Act, with special reference to the decisions of the Leasehold Valuation Tribunal (LVT), and the way in which administration charges fit in with all that. Costs may be payable contractually under a covenant, as part of the terms for relief from forfeiture, as costs of the action awarded by a court or the LVT or an arbitrator, or through the service charge. Different rules, statutes, case law and means of assessment apply in each context, but there is one common thread: full costs recovery is becoming increasingly difficult. Any demand for administration charges must be accompanied by a summary of the leaseholder's rights and obligations as regards such charges. Property managers may need to consider their procedures carefully in the light of the matters.
