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Summary of leaseholder's rights



As from 1 October 2007 it has been necessary to give leaseholders a summary of their rights and obligations relating to service and administration charges when they are sent their service and administration charge demands. The leaseholder is not obliged to pay the sum demanded until a demand with a summary is given to him or her.

The Commonhold and Leasehold Reform Act 2002 (Commencement No.6) (England) Order 2007 - Brings into force s153 of the 2002 Act on 1 October 2007 - which requires that a demand for service charges must be accompanied by a summary of the rights and obligations of the tenant.

The Service Charges (Summary of Rights and Obligations, and Transitional Provision) (England) Regulations 2007 - The regulations that prescribe the content of the summary of tenants' rights and obligations relating to service charges, which must accompany any demand for such charges made by a landlord, under section 21B of the Landlord and Tenant Act 1985.

The Administration Charges (Summary of Rights and Obligations) (England) Regulations 2007 - Similar provisions that apply to administration charges.

The Commonhold and Leasehold Reform Act 2002 (Commencement No.4) (Wales) Order 2007 (SI No.3161 (W.272) (C.128)) - Brings s153 of the Commonhold and Leasehold Reform Act 2002 into force on 30 November 2007. That section inserts section 21B into the Landlord and Tenant Act 1985, which requires that a demand for service charges must be accompanied by a summary of the rights and obligations of the tenant.

The Administration Charges (Summary of Rights and Obligations) (Wales) Regulations 2007 (SI No.3162 (W.273)) - These Regulations prescribe the content of the summary of tenants' rights and obligations relating to administration charges which must accompany any demand for such charges made by a landlord. The Regulations also make provision for minor matters in respect of the form of the summary. A leaseholder may withhold the service or administration charge payment if a landlord fails to provide the summary with the demand. In force 30 November 2007.

The Service Charges (Summary of Rights and Obligations, and Transitional Provisions) (Wales) Regulations 2007 (SI No. 2007/3160 (W.271)) - These Regulations prescribe the content of the summary of tenants' rights and obligations relating to service charges, which must accompany any demand for such charges made by a landlord, under section 21B of the Landlord and Tenant Act 1985. The Regulations also make provision for minor matters in respect of the form of the summary. Regulation 4 provides transitional provisions relating to demands for service charges sent to tenants prior to 30 November 2007.

Housing and Regeneration Act 2008

The 2008 Act was intended to bring about three changes to the law in relation to service charges (not yet in force). See Schedule 12 to the 2008 Act

Costs summaries - s 21 Landlord and Tenant Act 1985

Section 21 of the 1985 Act, as presently enacted allows the tenant to request a written summary of costs incurred by the landlord which he is seeking to recover as a service charge. The Commonhold and Leasehold Reform Act 2002 proposed to substitute a new s21, but the relevant parts were never brought into force. Schedule 12 of the 2008 Act substitutes a completely new scheme in place of the existing scheme currently set out in s21.

The obligation to supply a written summary on demand is retained, but regulations will require that a report by a qualified person be supplied with the information provided. Regulations will also specify the time period for provision of the information and define “qualified person”.

Management audit - s 78 Leasehold Reform etc Act 1993

Section 78 of the 1993 Act defines the persons able to carry out a management audit of premises under rights provided to long leaseholders by the Act. Paragraph 14 of Schedule 12 to the 2008 Act will amend this provision to insert a new class of auditor, being a person who is a member of a body which is a recognised supervisory body for the purposes of Part 42 of the Companies Act 2006 and disqualifies certain persons.

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