614. Meanings of 'service charge' and 'relevant costs'.

For the purposes of the Landlord and Tenant Act 1985 provisions relating to service charges, insurance and managing agents1, 'service charge' means an amount payable by a tenant of a dwelling2 as part of, or in addition to, the rent3:

  1.  

    (1)     which is payable, directly or indirectly, for services, repairs, maintenance, improvements or insurance or the landlord's costs4 of management5; and

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    (2)     the whole or part of which varies or may vary according to the relevant costs6.

The relevant costs are the costs or estimated costs incurred or to be incurred by or on behalf of the landlord, or a