Part 4 - Regulation of leasehold Section 64: Restriction on recovery of non-litigation costs of enfranchisement, extension and right to manage
Section 64 adds 20J to the 1985 Act which prohibits the recovery of non-litigation (process) costs through variable service charges and renders any term of a lease or collateral agreement that purports to allow a landlord or third party to recover their process costs unenforceable. These provisions supplement Section 38, stating that the aforementioned contractual agreements are also made unenforceable for non-participating tenants, ensuring that measures which overall seek to prevent a landlord from recovering any costs (litigation or process) from an enfranchising tenant, an RTM company or member of such company, cannot be subject to a loophole. The Section ensures that as well as these parties, mechanisms such as variable service charges to pass on costs they are not entitled to recoup are unenforceable if issued to any other leaseholder.
	The Section also adds Section 20K to the 1985 Act, which gives the Tribunal a power to order the recovery of any sums that have been paid by non-participating tenants to a landlord or third party under a term of a lease or collateral contract that is in fact unenforceable.