Landlords are obliged to provide certain information to leaseholders upon request. As most readers will know, service charge and ground rent demands must also contain specific information. Additionally, there is a prescribed summary of rights and obligations which must accompany demands for both service charges and administration charges.
The vast majority of leases will provide very few, if any, rights to information about the landlord or management parties to the lease. The statutory rights entitling leaseholders to this information is therefore important.
Failure to comply with these statutory provisions without a reasonable excuse is a summary offence punishable by fine. Whilst tenants are entitled to bring private prosecutions, it is more common (although rare in practice) for local housing authorities to do so. It is not possible to enforce these provisions by way of injunction in the civil courts.
So, what are these statutory rights?
THE LANDLORD’S IDENTITY – Section 1 of the Landlord and Tenant Act 1985
A leaseholder can submit a written request asking for the landlord’s name and address. The request can be made to anyone demanding rent or acting as agent for the landlord. That person must then supply a written statement of the landlord’s name and address within 21 days.
If the landlord is a company, the leaseholder can make a request in writing for the name and address of any directors and secretary (if any) of the company. Alternatively, if the landlord is a UK registered company, a search at Companies House should reveal this information.
CHANGE OF LANDLORD – Section 3 of the Landlord and Tenant Act 1985
If the landlord sells its interest in the freehold, the new landlord has a duty to give notice of this transfer in writing to the leaseholders within two months or on the next day rent is payable, whichever is later.
Interestingly, however, according to Section 3(3)(A) of the Landlord and Tenant Act 1987, the out-going landlord will still be liable under any covenants with the leaseholders until they have given the leaseholder notice in writing of the new landlord’s name and address (or the new landlord has given notice in writing of its name and address).
SECTION 47 AND 48 NOTICES – Landlord and Tenant Act 1987
Any written demand for rent, services or administration charges must contain the name and address of the landlord. For the avoidance of doubt, this requirement is not satisfied if the agents details are provided or by giving details of a director of a company landlord.
In the case of an individual, the address stated in the notice must be the individual’s home address or other address where he/she carries out business. In the case of a company, the address must be the registered address of the company.
If the landlord’s address is outside England and Wales, the demand must also contain an address, within England and Wales, where notices and proceedings may be served.
If the demand does not contain this information, the sums demanded will not be due until that information has been provided.
GROUND RENT DEMANDS – Section 166 Commonhold and Leasehold Reform Act 2002
A leaseholder is not liable to pay ground rent unless the landlord has first given notice in the prescribed form, which contains information about the dates for payment and consequences for non-payment i.e possible forfeiture proceedings.
INSURANCE – Schedule to the Landlord and Tenant Act 1985
Leaseholders who pay service charges in respect of insurance are entitled to certain information in that they:
- may require the landlord to provide them with a written summary of the insurance in place, the insured amount, the name of the insurer and the risks insured; and
- may inspect the insurance policy and any related accounts
Again, these sanctions do not apply to leaseholders whose landlords are local authorities.
SUMMARY OF COSTS – Section 21 of the Landlord and Tenant Act 1985
A leaseholder (or secretary of a recognised tenants association) may request in writing that the landlord supply the tenant with a “summary of relevant costs” for the previous accounting period.
On receiving the request, the landlord must within one month of the request or within six months of the end of the accounting period (whichever is later) provide a summary of costs which must contain certain information as set out in Section 21.
If there are more than four dwellings, a qualified accountant must have certified the summary confirming that it is a fair summary and is supported by relevant accounts receipts and vouchers.
A landlord may have a “reasonable excuse defence” for example, an arbitration clause in the lease, although you should note the offence cannot be committed by a local authority. It is, however, not an offence for a landlord to fail to provide documents they do not have.
MANAGEMENT AUDITS – Sections 76-84 of the Leasehold Reform Housing and Urban Development Act 1993
Leaseholders may appoint an auditor to conduct a “management audit”. The purpose of the audit is to ascertain whether the landlord’s obligations to the tenant are being discharged efficiently.
To request a management audit the minimum number of “qualifying tenants” must support it. A “qualifying tenant” is a tenant of a dwelling under a long lease (not a business lease). Where there are two dwellings, either or both leaseholders may request the audit. Where there are more than two dwellings, at least two-thirds of the leaseholders must make and support the request.
The auditor appointed must be a qualified accountant or qualified surveyor and cannot be a leaseholder.
The auditor is entitled to certain information. They are also entitled to inspect the premises.
In order to exercise the right, the auditor must give the landlord notice which has been signed by all those qualifying tenants requesting the audit. The notice must contain certain information too.
The landlord must respond within two months of the notice by either:
- sending copies of the documents requested or providing facilities for inspection or copying; or
- objecting to the supply of documents (reasons must be given).
If within two months of the notice, the landlord has failed to comply with the requirements of the notice, an application may be made to the court for an order requiring compliance. This application must be made within four months of the date of the notice.
Yashmin Mistry is a Partner at
JPC Law 