HCA confirms LSE Management Fee Limit for 2016/17

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Registered providers (‘RP’s) who own or manage retirement leasehold accommodation should take note of the new LSE management fee limits for the 2016/17 financial year.

From 1st April 2016, the basic limit where the RP provides the management service direct to the tenant will be £422 with no VAT being chargeable.  When a RP contracts out the management services to an agent who is required to charge the RP VAT, the amount collected from the leaseholder must not exceed £483.  The changes represent a smaller percentage increase than witnessed this time last year, when the basic limit rose from £409 to £418 and the agent limit climbed to £479 from £469.

These limits not only apply to the management aspect of service charges in Leasehold Schemes for the Elderly (‘LSE’), but also Shared Ownership for the Elderly and other types of grant-funded retirement leasehold accommodation. RPs are not tied to the limits automatically, however, as there must be a clause within the relevant lease which specifies that the prescribed limits should apply – without such a clause no restriction is imposed by the HCA.

If you are looking for any more information with regards to our services view our Housing & Regeneration section. You can also contact solicitor Lucy Worrall in our Housing & Regeneration department via email or phone on 01254 222393. Alternatively send any question through to Forbes Solicitors via our online Contact Form.

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