Section 20C LTA 1985 blocks the landlord recovering its litigation costs as a service charge. But most modern leases have a parallel covenant letting the landlord recover the same costs as an administration charge — often under a "costs incidental to preparation and service of notices under s.146 LPA 1925" clause or the ubiquitous "in relation to any breach or alleged breach of covenant" clause.
That's where paragraph 5A of Schedule 11 to the Commonhold and Leasehold Reform Act 2002 comes in.
What paragraph 5A does
The tribunal may order that all or part of the litigation costs incurred by the landlord in connection with proceedings before the FTT, Upper Tribunal, court or arbitral tribunal are not to be payable by the tenant as an administration charge.
Together with s.20C it closes the loop: costs cannot come back via service charge (s.20C) or admin charge (para 5A).
When to apply
At the same time as your s.20C application. A single paragraph in the application form covers both:
"The Applicant also seeks an order under paragraph 5A of Schedule 11 to the Commonhold and Leasehold Reform Act 2002 that all or any of the costs incurred by the Respondent in these proceedings shall not be payable by the Applicant as an administration charge."
The test
Same "just and equitable" test as s.20C. The same factors apply: outcome, conduct, proportionality, effect on other leaseholders.
Why it matters more than most leaseholders realise
Litigators in this space report that where a landlord has both routes, they overwhelmingly prefer admin charge recovery because:
- It targets the individual leaseholder (not spread across the block).
- It is a personal debt attaching to that leasehold interest.
- Non-payment can trigger a section 146 notice and forfeiture proceedings.
A s.20C order alone leaves you exposed. Ask for para 5A too.
Reading list
- [Section 20C costs order guide](/guides/section-20c-costs-order-explained-recover-landlord-legal-costs)
- [Tribunal fees and hearing costs — 2026](/guides/tribunal-fees-and-hearing-costs-a-2026-guide)
Frequently asked questions
Does para 5A apply if my lease has no admin-charge costs clause?＋
There is no admin charge to challenge, but ask for the order anyway — it costs nothing and protects against later reinterpretation.
Can I apply for para 5A after the decision?＋
Yes — the tribunal has jurisdiction as long as the underlying proceedings existed. Do not delay.
Does para 5A stop a s.146 forfeiture threat?＋
It removes the debt hook that would justify the s.146 in the first place, but you still need to be current on undisputed sums.
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