Part 4 - Regulation of leasehold Section 54: Notice of Future Service Charge Demands
Section 54 replaces part of subsection (2) and inserts new subsections (3) to (9) into Section 20B of the Landlord and Tenant Act 1985. This covers the time limit after works or services are carried out for the landlord to demand payment, or to notify tenants that a demand for payment will be forthcoming.
	In subsection (2) of Section 20B of the Landlord and Tenant Act 1985, the words "from notified in writing" to the end are replaced with "given a future demand notice in respect of future costs."
	Subsection (3) defines a "future demand notice" as a notice in writing that confirms relevant costs have been incurred and that the tenant will be required to contribute towards the cost, as set out in their lease, as part of their variable service charge.
	Subsection (4) confers powers on the appropriate authority to set out in regulations: (a) the form of the notice; (b) information to be included in the notice; and (c) the manner in which the future demand notice must be given to the tenant.
	Subsection (5) details that regulations made by the appropriate authority may, among other things, specify information to be included in the future demand notice as: (a) an amount estimated as the costs incurred (an "estimated cost"); (b) an amount the tenant is expected to contribute toward the costs (an "expected contribution"); and (c) a date on or before which it is expected that the variable service charge will be demanded ("expected demand date").
	Subsection (6) sets out that regulations may provide for a relevant rule to apply where: (a) the tenant has been given a future demand notice, and (b) the demand for payment of a variable service charge as a contribution to the costs is served on the tenant more than 18 months after the costs were incurred.
	Subsection (7) sets out the relevant rules. Subsection (7)(a) states that where the future demand notice contains estimated costs, the tenant is only liable to pay the service charge to the extent it reflects relevant costs that do not exceed the estimated costs. Subsection (7)(b) states that where a future demand notice contains an expected contribution, the tenants are only liable to pay the service charge to the extent that is does not exceed the expected contribution. Subsection (7)(c) states that where a future demand notice contains an expected demand date, the tenant is not liable to pay the service charge to the extent it reflects any of the costs if the demand is served after the expected demand date.
	Subsection (8) details that regulations that provide the relevant rule in new subsection (7)(c), may also provide that the rule is to apply as if, for the expected demand date, there were substituted a later date determined in accordance with the regulations. This allows for the landlord to be able to extend the expected demand date in cases specified by regulations, for example, due to unexpected delays in completing the work.
	Subsection (9) details that regulations under this Section are: (a) to be made by statutory instrument; (b) may make provision generally or for a specific case; (c) may make different provision for different purposes; and (d) may include supplementary, incidental, transitional or saving provision. Subsection (10) sets out that the statutory instrument containing regulations under this Section is subject to the negative procedure.