RMC building safety director fees LTA 1985 s. 30E
Leases in high-risk buildings allow resident management or RTM companies to pay building safety directors through service charges, split like insurance.
This section applies to a lease of premises which consist of or include a dwelling in a higher-risk building if— the landlord is an accountable person for the building, the landlord is— a resident management company within the meaning of section 111 of the Building Safety Act 2022, or an RTM company within the meaning of Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (right to manage), and the tenant is liable to pay a service charge. The lease has effect— as if it contained provision authorising the appointment of a person (whether or not a leaseholder or a resident of the building) as a director of the landlord for a building safety purpose, as if the matters for which the service charge is payable under the lease included remunerating any director of the landlord appointed for a building safety purpose (insofar as this would not otherwise be the case), and where the lease contains different methods for apportioning different relevant costs (within the meaning of section 18), as if it provided that any costs for which the tenant is liable by virtue only of paragraph (b) to be apportioned in the same way as costs incurred in connection with insuring the building. In this section— “ building safety purpose ” means the purpose of supporting the landlord in complying with its duties under Part 4 of the Building Safety Act 2022 or under regulations made under that Part; “ landlord ” includes any person who has a right under the lease to enforce payment of a service charge; “ service charge ” has the meaning given by section 18; “ tenant ” includes any person who has an obligation under the lease to pay a service charge.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
For leasehold flats in higher-risk buildings managed by a Resident Management Company or a Right to Manage company that acts as an accountable person, the lease automatically includes provisions regarding building safety directors. Even if the written lease deed does not explicitly allow paying directors or creating such roles, the company is legally authorised to appoint a director specifically for building safety duties.
The cost of paying this building safety director can be recovered from leaseholders through their service charges. If a lease sets out different formulas for sharing different types of expenses, the director's remuneration must be apportioned among leaseholders using the exact same calculation used for building insurance.
When it applies
- A Right to Manage company hires a paid director to handle building safety obligations and adds the director's remuneration to the yearly service charge budget.
- A resident management company apportions a building safety director's fee among leaseholders according to the lease's building insurance allocation formula.
- Leaseholders challenge a service charge bill on the grounds that their original lease terms forbid paying company directors.
What this section does not say
- General liability for building safety repair costs, which is covered under section 30d.
- Challenging whether the specific amount of a service charge is reasonable, which falls under county court or tribunal jurisdiction in section 27a.
- The implied landlord covenants to comply with building safety duties generally, dealt with under section 30c.
Related sections
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This page reproduces the text of LTA 1985 s. 30E in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.