Leasehold Training Day

Challenging service charges
Shabnam Ali-Khan
Statutory authority
Landlord and Tenant Act 1985
Landlord and Tenant Act 1987
Commonhold and Leasehold Reform Act
Housing and Regeneration Act 2008
Crucial questions
Are the costs payable ?
Are the costs reasonable ?
LVT vs. County Court
Section 27A LTA 1985
The Service Charge Demand
Sections 47 and 48 Landlord and Tenant
Act 1987
Must be accompanied by the summary
of rights and obligations, since October
Administration charges must also be
accompanied by similar summary
Construction of Lease
Entitled to recover?
Improvements vs. repairs
Management costs
Legal costs
Section 20C LTA 1985
Sinking fund
Sweeper clause
Machinery in the lease
Advance payments?
And when due?
And by whom ?
Audited accounts required ?
Inspection of documents?
Sections 21 and 22 of Landlord and Tenant Act 1985,
2002 Act changes not coming into force. Superceded
by Housing and Regeneration Act changes regarding
statement of accounts.
Historic service charges
Section 20B of the LTA 1985
("City of Westminster vs. Hammond")
Limitation Act 1980: rent- 6 years,
service charges- 12 years
Statutory Consultation
Section 20 LTA 1985
(as amended by Section 151 of the
CLRA 2002)
3 stage process now.
Applicable to QLTA
LVT can determine
Right to Buy
Section 125 notice
Payment options
Various Public Sector landlords will
have payment options
"Continental vs. White"
Historic neglect
Reasonably incurred?
Reasonable standard?
Advance payments reasonable?
Decent Homes
National strategy for renewal of local
authority housing designed to deal with
disrepair issues
Certain requirements to be met by 2010:”All
property owned and managed by the council
must meet the Decent Homes Standard. To
meet the standard, property must have
reasonably modern facilities, be warm and
weatherproof.” (DirectGov website)
Decent Homes
Huge service charge demands for local
authority lessees
Huge number of enquiries for LEASE
LVT applications
Limited if within reference period for
RTB leases
Has to be recoverable under the lease
Assistance for Decent Homes
Landlord may provide a loan
Mandatory and Discretionary Directions
Exchange sale scheme
31 Worship Street
Tel: 020 7374 5380
Fax: 020 7374 5373
Email: [email protected]

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