This part of the website contains a very brief summary of the main laws that cover leaseholders.

We have copies of the main laws in our offices and you are welcome to visit our office to read them or copy extracts. If you want to do this, please call us to make an appointment. Your local library may also have copies of the main laws or you can buy copies from Her Majesty's Stationery Office (HMSO) or legal bookshops.

Housing Act 1996
This Act gives you extra protection if you dispute a service charge we are making.The Act set up Leasehold Valuation Tribunals (LVTs) to decide whether service charges are reasonable.We cannot take action to evict you for not paying the service charge until a Leasehold Tribunal has decided whether or not service charge is reasonable.

If there is a recognised residents' group, the Act gives the leaseholder the right to appoint a qualified surveyor to advise them about the service charges.

Arbitration Act 1996
This Act sets out the powers of arbitration tribunals, including Leasehold Valuation Tribunals.

The Leasehold Housing and Urban Development Act 1993
The Leasehold Reform Housing and Urban Development Act 1993 gives you the right to appoint an auditor (called a 'surveyor' in the Act) to look at the way we are managing the property. The auditor must be suitably qualified, for example, they must be a fellow or a professional associate of the Royal Institution of Chartered Surveyors.
The auditor must be appointed by two thirds of lessees in a property or block. If there are only two lessees in a block, the auditor can be appointed by a single lessee.

The auditor can demand to see a summary of service charge spending (the figures showing what money we have spent on the shared areas) for the most recent 12-month accounting period. If these figures have not yet been prepared, the auditor can demand to see figures for the 12 months immediately before that. The auditor can also ask to see other relevant documents. We must allow the auditor to inspect the documents and take copies. The auditor also has the right to inspect the shared areas of the building.

Landlord and Tenant Act 1985
(as amended by the Leasehold and Commonhold Reform Act 2002) This Act set out rules and definitions regarding service charges including:

• an explanation of what a service charge is
• guidance on what is a 'reasonable' service charge
• the right to be consulted about service charges
• a time limit for us to pass on costs to you
• your right to inspect bills for service charges
• your right to see a summary of the insurance policy, and if appropriate to put forward another insurance policy
• rules for recognising residents' groups and their rights

We explain this in more detail in the section on 'Your Service Charge'.

Landlord and Tenant Act 1987
This Act sets out rules for changing existing leases. Under the Landlord and Tenant Act 1987:

• landlords must give their name and address when making service charge demands
• private landlords must set up 'trust funds' for sinking, reserve or contingency fund contributions

Housing associations do not have to set up trust funds. However, The Housing Corporation make sure housing associations protect sinking, reserve or contingency fund contributions paid by leaseholders.

Law of Property Act 1925
This Act means we must tell your mortgagee (in other words, the bank or building society lending the money for the mortgage) before taking legal action to make you give up the lease.

Commonhold and Leasehold Reform Act 2002
This Act introduced a number of important new rights for leaseholders. The Act has been brought into force in several phases, with the final phase due in early 2006. Under this Act, leaseholders of flats in England, who meet the qualifying criteria now have the right to take over the management of their blocks from their landlords.This is known as 'Right to Manage' (RTM).

The Act allows leaseholders more control over the level of service charges they pay and for those that qualify, it also enables them to choose their own managing agent and buildings insurance. Even if leaseholders do not take advantage of these new rights, the Act gives them greater power in their dealings with their landlords.

In 2003 a provision of the Act came into force, which increases leaseholders' rights to be consulted about any major work to be carried out. This mainly applies to owners of flats. Under this provision:

• when any major work on an estate exceeds £250 per dwelling, your landlord must give you notice of their plans and a description of the work to be carried out.You will then be given 30 days to allow you, or the residents' group that represents you, to comment on the plans and to nominate a contractor to be included in the tender process
• your landlord will then invite tenders from all the proposed contractors and once received, copies will then be made available for inspection.You will then have a further 30 days during which to make further comments
• if any comments are received at this second stage of consultation, your landlord must write to you or your residents' group responding to these comments.They must also write to explain the reasons for their choice of contractor, unless there were no comments received at the second stage of consultation or they chose the contractor who made the lowest quote

The Act has also made some improvements to the way Leasehold Valuation Tribunals (LVTs) deal with disputes between leaseholders and landlords.

Please contact us if you want to find out the latest information about the introduction of the Commonhold and Leasehold Reform Act 2002.