Leaseholder rights
What rights does the leaseholder have?
Probably more than you think. There is a wide range of rights set out in the legislation and advice is readily available; however, where a dispute arises, the first step should be to ask the landlord or managing agent for full details and/or an explanation. These rights include:
- Information: the landlord must provide his name and a contact address within England or Wales which must be stated on every demand for ground rent and service charges. Leaseholders can demand summaries of the service charges; details of the insurance cover and have the right to inspect accounts and other documents.
- Consultation on major (qualifying) works:
the landlord cannot carry out major works to the building
where it costs any leaseholder more than £250 without first
consulting the leaseholders in the proper fashion; if he
fails to do this, he may not be able to recover all the
costs.
- Consultation on long-term agreements:
the landlord cannot enter into certain agreements or contracts
for any service over 12 months where the cost to any leaseholder
is more than £100 per year without first consulting the
leaseholders.
- Challenging service charges: leaseholders
can apply to the LVT to seek a determination of the liability
to pay and reasonableness of the charges, whether already
paid or not.
- Challenging administration charges:
leaseholders can apply to the LVT to seek a determination
of the liability to pay and reasonableness of other charges
arising from the lease in addition to the service charge.
For example, consents for alterations and subletting, or
fees for providing information.
- Right to manage: if leaseholders want
to change the management of their property, whether it is
deficient or not, they can do so by using the right to manage.
This is a 'no fault, no compensation' process that will
allow leaseholders as a group to decide the management arrangements
for the property. This right does not apply where the landlord
is a local authority.
- Appointing a manager: if the landlord's
management is deficient, then leaseholders can apply to
the LVT for the appointment of a manager (except where the
landlord is a housing association or local authority).
- Extending a lease: an individual leaseholder
who satisfies certain conditions can demand a new lease
from the landlord, adding 90 years to the existing lease,
with the price to be agreed between the parties, or, if
this is not possible, set by the LVT.
- Buying the freehold: groups of leaseholders
who satisfy certain conditions can get together and enforce
the purchase of the freehold, again with the price being
agreed between the parties or, if this is not possible,
set by the LVT.
- Right of first refusal: in most cases,
where the landlord proposes to sell his interest in the
building, he must offer it to the leaseholders first or
he can be prosecuted. There are some exceptions to this,
including housing associations and local authority landlords.
- Right to vary a lease: a lease can be varied at any time where it does not make proper provision for such things as the repair or maintenance of the building, insurance etc. A lease can be varied with the agreement of all interested parties or by application to an LVT.
All these rights are covered in various publications available from LEASE.
Where can I get advice?
- LEASE - The Leasehold Advisory Service
31 Worship Street, London, EC2A 2DX Tel: 020 7374 5380 Fax: 020 7374 5373 Email: info@lease-advice.org Website: www.lease-advice.org. LEASE provides free advice and guidance to leaseholders and landlords on all aspects of leasehold law, including problems with service charges, the right to manage, possession proceedings and rights to lease extension and freehold acquisition. LEASE is funded by the Department for Communities and Local Government and the National Assembly for Wales. - ARMA - The Association of Residential Managing Agents
178 Battersea Park Road, London SWII 4ND. Tel: 020 7978 2607 Fax: 020 7498 6133 Email: info@arma.org.uk Website: www.arma.org.uk ARMA is the leading trade body in England and Wales that focuses exclusively on matters relating to the block management of residential property, whether for landlords or resident management companies. Members agree to adopt and comply with the principal objectives of the Association and undertake to follow the codes of practice issued by ARMA and the Royal Institution of Chartered Surveyors.