Schedule 8: Remediation costs under qualifying leases Paragraph 10: Paragraphs 2 to 4, 8 and 9: supplementary Proposed use of power
The power at sub-paragraph (4) will be used to expand the protections to non-residential leases. While service charges and reserve funds in respect of residential leases are governed by the Landlord and Tenant Act 1985 and the Landlord and Tenant Act 1987, there is no equivalent overarching legislation governing these matters for non-residential leases.
	Paragraph 2 of Schedule 8 applies equally to non-residential leases as it does to residential leases. This means that where a landlord for the building was responsible for the defect, no service charges relating to that defect can be passed to any leaseholder, including non-residential leaseholders. The power at sub-paragraph (4) will be used to make provision setting out that in this situation, costs cannot be met by service charges payable by commercial leaseholders or by reserve funds into which commercial leaseholders may have made payments.
Example
The landlord for a high-rise building is linked to the developer and so cannot pass on any costs to leaseholders relating to defects connected with the initial construction of the building. Paragraph 10 prevents the landlord from meeting any of the costs for remediation of those defects from the building’s reserve fund.