Q&As

Have remedies under section 121 of the Law of Property Act 1925 been removed in relation to a modern ‘service charge’ type charge payable by owners on an estate (eg a typical newbuild type estate where there might be common areas, etc paid for collectively by way of variable charge, payable by positive covenant). Are these estate rentcharges?

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Published by a ³ÉÈËÓ°Òô Property expert
Published on: 16 April 2025
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The Leasehold and Freehold Reform Act 2024 (LFRA 2024) amended the Law of Property Act 1925 (LPA 1925) and introduced a new concept of a ‘regulated rentcharge’ (LFRA 2024, ss 113(2) and 124(2)(a) and LPA 1925, s 120A(1)). A ‘regulated rentcharge’ is any rentcharge of a type that could not be created under section 2 of the Rentcharges Act 1977 (RcA 1977)—see LPA 1925, s 120A(1) and Practice Note: Rentcharges—apportionment, termination and enforcement (which refers to ‘regulated rentcharges’ as ‘Historic Rentcharges’).

On and from 27 November 2023, remedies under LPA 1925, s 121 are no longer available in relation to a ‘regulated rentcharge’ (LPA 1925, s 121(1A) and LFRA 2024, s 113(5)). Note that there are anti-avoidance provisions that apply (see LPA 1925, s 122A).

An

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