Not sure of your rights as a leaseholder?
The Leasehold Advisory Service (LEASE) can help you. If
you cannot find the answer to your question on their website at
www.lease-advice.org you
can call one of their trained, specialist lawyers on 020 7374 5380
for FREE legal advice. The service is government-funded and
completely free to you.
Commonhold & Leasehold Reform Act 2002 – Section 153
Service Charges (Summary of Rights and Obligations, and
Transitional Provision) (England) Regulations 2007
(1) This summary, which briefly sets out your
rights and obligations in relation to variable service
charges, must by law accompany a demand for service charges. Unless
a summary is sent to you with a demand, you may withhold the
service charge. The summary does not give a full interpretation of
the law and if you are in any doubt about your rights and
obligations you should seek independent advice.
(2) Your lease sets out your obligations to
pay service charges to your landlord in addition to your rent.
Service charges are amounts payable for services, repairs,
maintenance, improvements, insurance or the landlord's costs of
management, to the extent that the costs have been reasonably
incurred.
(3) You have the right to ask a leasehold
valuation tribunal to determine whether you are liable to pay
service charges for services, repairs, maintenance, improvements,
insurance or management. You may make a request before or after you
have paid the service charge. If the tribunal determines that the
service charge is payable, the tribunal may also determine—
- who should pay the service charge and who it should be paid
to;
- the amount;
- the date it should be paid by;
- And how it should be paid.
However, you do not have these rights where—
- a matter has been agreed or admitted by you;
- a matter has already been, or is to be, referred to arbitration
or has been determined by arbitration and you agreed to go to
arbitration after the disagreement about the service charge or
costs arose;
- or a matter has been decided by a court.
(4) If your lease allows your landlord to
recover costs incurred or that may be incurred in legal proceedings
as service charges, you may ask the court or tribunal, before which
those proceedings were brought, to rule that your landlord may not
do so.
(5) Where you seek a determination from a
leasehold valuation tribunal, you will have to pay an application
fee and, where the matter proceeds to a hearing, a hearing fee,
unless you qualify for a waiver or reduction. The total fees
payable will not exceed £500, but making an application may incur
additional costs, such as professional fees, which you may also
have to pay.
(6) A leasehold valuation tribunal has the
power to award costs, not exceeding £500, against a party to any
proceedings where—
- it dismisses a matter because it is frivolous, vexatious or an
abuse of process; or
it considers a party has acted frivolously, vexatiously, abusively,
disruptively or unreasonably. The Lands Tribunal has similar powers
when hearing an appeal against a decision of a leasehold valuation
tribunal.
(7) If your landlord—
- proposes works on a building or any other premises that will
cost you or any other tenant more than £250, or
- proposes to enter into an agreement for works or services which
will last for more than 12 months and will cost you or any other
tenant more than £100 in any 12 month accounting period, your
contribution will be limited to these amounts unless your landlord
has properly consulted on the proposed works or agreement or a
leasehold valuation tribunal has agreed that consultation is not
required.
(8) You have the right to apply to a
leasehold valuation tribunal to ask it to determine whether your
lease should be varied on the grounds that it does not make
satisfactory provision in respect of the calculation of a service
charge payable under the lease.
(9) You have the right to write to your
landlord to request a written summary of the costs which make up
the service charges. The summary must—
- cover the last 12 month period used for making up the accounts
relating to the service charge ending no later than the date of
your request, where the accounts are made up for 12 month periods;
or
- cover the 12 month period ending with the date of your request,
where the accounts are not made up for 12 month periods.
The summary must be given to you within 1 month of your
request or 6 months of the end of the period to which the summary
relates whichever is the later.
(10) You have the right, within 6 months of
receiving a written summary of costs, to require the landlord to
provide you with reasonable facilities to inspect the accounts,
receipts and other documents supporting the summary and for taking
copies or extracts from them.
(11) You have the right to ask an accountant
or surveyor to carry out an audit of the financial management of
the premises containing your dwelling, to establish the obligations
of your landlord and the extent to which the service charges you
pay are being used efficiently. It will depend on your
circumstances whether you can exercise this right alone or only
with the support of others living in the premises. You are strongly
advised to seek independent advice before exercising this
right.
(12) Your lease may give your landlord a
right of re-entry or forfeiture where you have failed to pay
charges which are properly due under the lease. However, to
exercise this right, the landlord must meet all the legal
requirements and obtain a court order. A court order will only be
granted if you have admitted you are liable to pay the amount or it
is finally determined by a court, tribunal or by arbitration that
the amount is due. The court has a wide discretion in granting such
an order and it will take into account all the circumstances of the
case.
Should you have any queries regarding your service charges or
major works, please contact your Leasehold Services Manager as
directed on the front of the demand.