Introduction

Freeholders of blocks of flats that are sold on long leases (greater than 21 years) from 1st October 2007 (England) and 30 November 2007 (Wales) are required to provide a summary of rights and obligations in the form of a notice typewritten in at least 10-pt. This prescribed form must accompany any demand for a service or administration charge.

If a freeholder landlord fails to provide a summary of rights and obligations with any demand for payment, the tenant may withhold payment of the service charge [section 21B(4) Landlord and Tenant Act 1985]. Where a tenant withholds a service charge, any provisions of the lease relating to non-payment or late payment of service charges do not have effect in relation to the period for which he so withholds it [section 21B(4) Landlord and Tenant Act 1985].

There are two notices depending on the nature of the demand and whether the amounts due represent service charges or administration charges:

Service Charges

Service charge means an amount payable by a tenant of a dwelling as part of or in addition to the rent which is payable, directly or indirectly, for

  • services
  • repairs
  • maintenance
  • improvements
  • insurance or
  • the landlord’s costs of management, and

The whole or part of which varies or may vary according to the relevant costs. [section 18 Landlord and Tenant Act 1985]. “Costs” includes overheads [s.18(3)(a)].

A suitable form for service charge demands for England only is available by clicking here (Please contact us if a Wales version is required)

The appropriate legislation detailing the requirements of the notice is The Service Charges (Summary of Rights and Obligations, and Transitional Provision) (England) Regulations 2007 for England and The Service Charges (Summary of Rights and Obligations, and Transitional Provisions) (Wales) Regulations 2007 for Wales.

Administration Charges

An administration charge is an amount which may be payable by the tenant as part of or in addition to the rent directly or indirectly-

  • for or in connection with the grant of an approval under your lease, or an application for such approval;
  • for or in connection with the provision of information or documents;
  • in respect of the tenants failure to make any payment due under your lease; or
  • in connection with a breach of a covenant or condition of the lease.
(see full information in schedule 11 Commonhold and Leasehold Reform Act 2002.)

A suitable form for administration charge demands for England only is available by clicking here (If you require a Wales version of the notice, please contact us).

The appropriate legislation detailing the requirements of the notice is The Administration Charges (Summary of Rights and Obligations) (England) Regulations 2007 for England and The Administration Charges (Summary of Rights and Obligations) (Wales) Regulations 2007 for Wales.

 

Demand for Rent

In addition to notices for service charges and administration charges as discussed above, a demand for rent on a long lease (greater than 21 years) must be made using a prescribed form [section 166 Commonhold and Leasehold Reform Act 2002]. The prescribed form is contained in The Landlord and Tenant (Notice of Rent) (England) Regulations 2004 for England and The Landlord and Tenant (Notice of Rent) (Wales) Regulations 2005 for Wales.

The requirements of the notice are (taken from the England regulations):

Additional content and form of notice of rent due
2. – (1) A notice under subsection (1) of section 166 of the 2002 Act (requirement to notify long leaseholders that rent is due) shall contain (in addition to the information specified in accordance with paragraphs (a) and (b) of subsection (2) of that section and, if applicable, paragraph (c) of that subsection) –

(a) the name of the leaseholder to whom the notice is given;

(b) the period to which the rent demanded is attributable;

(c) the name of the person to whom payment is to be made, and the address for payment;

(d) the name of the landlord by whom the notice is given and, if not specified pursuant to sub-paragraph (c) above, his address; and

(e) the information provided in the notes to the form set out in the Schedule to these Regulations.

(2) A notice under subsection (1) of section 166 of the 2002 Act shall be in the form set out in the Schedule to these Regulations.

 

A tenant under a long lease of a dwelling is not liable to make a payment of rent under the lease unless the landlord has given him a notice relating to the payment [section 166(1) Commonhold and Leasehold Reform Act 2002].

A suitable notice is for England only is available by clicking here (If you require a Wales version, please contact us).

All these forms (service, administration and ground rent) were also amended by schedule 2, The Transfer of Tribunal Functions Order 2013

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