Administration fees explained

Sometimes we have to carry out additional work when a leaseholder has a particular need or request for information. Examples of this include:

  • Finding out if we can agree alterations to a property
  • Providing information to a solicitor to help with the sale of a leasehold property
  • Dealing with a breach of a lease.

We don't expect everyone to pay for administrative charges that only relate to one or two people so we don't include this type of cost in the annual service charge. We also think it's important that tenants' rents don't subsidise the work we do for leaseholders, so we have put together a menu of fixed charges so you can see what we classify as administration.

We will always tell you before a charge is incurred and will give you a statement with a summary of your legal rights.

This list explains the administration fees that are payable for specific items.

Fees for services you apply for can be paid by cheque, made payable to 'Red Kite Community Housing' and sent to Red Kite Community Housing, Windsor Court, Kingsmead Business Park, Frederick Place, High Wycombe, HP11 1JU.

You can also make a payment to our bank account quoting the reference LHAF and the first line of the property address - for example, LHAF 33 Red Kite Way.

Bank account name: Red Kite Community Housing Ltd Income Account
Bank name: National Westminster Bank plc
Bank account number: 16523059
Sort code: 60-11-01

Service Cost
Pre-assignment pack £200.00 + VAT
Pre-assignment – supplementary enquiries £18.98 + VAT
Remortgage £74.73 + VAT
Remortgaging with further advance £93.43 + VAT
Notice of mortgage/charge £77.61 + VAT
Notice of transfer/assignment £77.61 + VAT
Certificate of compliance £62.28 + VAT
Receipting other notices £31.15 + VAT
Licence to assign £124.57 + VAT
Subletting registration £74.73 + VAT
Subletting – retrospective registration £124.57 + VAT
Deed of postponement (including Right to Buy) £127.01 + VAT
Deed of covenant £62.28 + VAT
Deed of variation Cost of legal fees incurred
Lease extension valuation Cost of surveyor's fees incurred
Lease extension administration £254.01 + VAT
Additional lease extension fee for set-up of new lease £124.57 + VAT
New lease plan drafting Cost of surveyor's fees incurred
Lease extension legal fees (voluntary route) Cost of legal fees incurred
Lease extension legal fees (statutory route) Cost of legal feed incurred
Enfranchisement valuation Cost of surveyor's fees incurred
Enfranchisement administration £162.87 + VAT
Letter regarding breach of lease £42.33 + VAT
Copy of lease £37.37 + VAT
Assessment of request for minor alterations £98.78 + VAT (plus cost of professional fees incurred)
Assessment of request for complex alterations £311.40 + VAT (plus surveyor's costs incurred)
Assessment of retrospective request for alterations £311.40 + VAT (plus surveyor's costs incurred)
Shared ownership resales (with nominations) Refer to lease for % charge
Change of name £62.28 + VAT
Staircasing £250.37 + VAT
Transfer of equity administration fee £124.57 + VAT
Redemption of equity loan administration fee £124.57 + VAT
Statement of account – prior year's o/s of pre-assignment pack £24.91 + VAT
Returned cheques Recovery of any charge incurred by Red Kite
Legal recovery action (LRA) Office copy entry from Land Registry (proof of ownership) £24.91 + VAT
LRA Section 146 Notice (forfeiture proceedings) £126.56 + VAT
Visit regarding breach of lease (if required) £62.28 + VAT
Freeholder enquiries (freeholders with covenants/estate charges) £124.57 + VAT
Land sales administration fee £340.43 + VAT

Administration charges – Summary of your rights and obligations

  1. This summary, which briefly sets out your rights and obligations in relation to administration charges, must by law accompany a demand for administration charges. Unless a summary is sent to you with a demand, you may withhold the administration charge. The summary does not give a full interpretation of the law and if you are in any doubt about your rights and obligations you should seek independent advice.
  2. An administration charge is an amount which may be payable by you as part of or in addition to the rent directly or indirectly:
    • for or in connection with the grant of an approval under your lease, or an application for such approval;
    • for or in connection with the provision of information or documents;
    • in respect of your failure to make any payment due under your lease; or
    • in connection with a breach of a covenant or condition of your lease.
    • If you are liable to pay an administration charge, it is payable only to the extent that the amount is reasonable.
  3. Any provision contained in a grant of a lease under the right to buy under the Housing Act 1985, which claims to allow the landlord to charge a sum for consent or approval, is void.
  4. You have the right to ask the First-tier Tribunal whether an administration charge is payable. You may make a request before or after you have paid the administration charge. If the tribunal determines the charge is payable, the tribunal may also determine:
    • who should pay the administration charge and who it should be paid to;
    • the amount;
    • the date it should be paid by; and
    • how it should be paid.
    • However, you do not have this right where:
    • a matter has been agreed to or admitted by you;
    • a matter has been, or is to be, referred to arbitration or has been determined by arbitration and you agreed to go to arbitration after the disagreement about the administration charge arose; or
    • a matter has been decided by a court.
  5. You have the right to apply to the First-tier Tribunal for an order varying the lease on the grounds that any administration charge specified in the lease, or any formula specified in the lease for calculating an administration charge is unreasonable.
  6. Where you seek a determination or order from the First-tier Tribunal, you will have to pay an application fee and, where the matter proceeds to an oral hearing, a hearing fee, unless you qualify for fee remission or exemption. Making such an application may incur additional costs, such as professional fees, which you may have to pay.
  7. The First-tier Tribunal and the Upper Tribunal (in determining an appeal against a decision of the First-tier Tribunal) have the power to award costs in accordance with section 29 of the Tribunals, Courts and Enforcement Act 2007.
  8. Your lease may give your landlord a right of re-entry or forfeiture where you have failed to pay charges which are properly due under the lease. However, to exercise this right, the landlord must meet all the legal requirements and obtain a court order. A court order will only be granted if you have admitted you are liable to pay the amount or it is finally determined by a court, a tribunal or by arbitration that the amount is due. The court has a wide discretion in granting such an order and it will take into account all the circumstances of the case.