Acts of Parliament that will have an impact on landlords and managing agents, seeking to recover the cost of switching to digital TV.
Secure and regulated tenants who commenced their tenancy before 14th January 1989 are affected.
Costs to be recovered through service charges limited to the amount recorded as part of the Fair Rent on the rent registration document issued by The Rent Service.
Although a fair rent normally lasts for a period of two years, a landlord can re-apply within that period to the Rent Service (under s67 (3) (d) of the Act) on the grounds of changed circumstances for a revised service charge to take account of the costs of the switchover to digital.
If The Rent Service has registered a variable service charge, the landlord will be able to recover its costs in full provided that those costs are reasonable. This would not be necessary under a variable service charge assuming that the provision and maintenance of a communal TV system was already included in the service charge in the tenancy agreement.
Secure tenants who have exercised the Right to Buy are affected.
Tenants must have been given a list of services and their costs as part of the Right to Buy process.
Upgrade costs or estimates should be included in S125 notices where works are proposed.
This affects tenants and leaseholders paying variable service charges.
The landlord has the ability to recover all its costs through the service charge provided that those costs are reasonable and the works or services have been provided to a reasonable standard.
Landlords must consult with residents if costs to be incurred on any one contract exceed £250 (including VAT) per resident before the works are commenced.
Landlords must consult with residents if costs to be incurred on any long-term contract entered into for more than 12 months exceed £100 per annum (including VAT) per resident.
For details of procedures see the Service Charges (Consultation Requirements) (England) Regulations 2003 (Statutory Instrument 2003 No 1987 and Service Charges (Consultation Requirements) (Wales) Regulations 2004 (Statutory Instrument 2004 No 684 (W72).
A useful LVT decision is City West Homes May 2007.Sections 35 to 37 allow a party to a lease to seek to vary the terms of that lease where agreement cannot be reached between the parties. The Leasehold Valuation Tribunal considers such disputes Applications forms available from http://www.rpts.gov.uk.
Section 42 stipulates that funds can only be spent at the development from which they had been collected.
Although Housing Associations and Local Authorities are exempt landlords under s42, the Housing Corporation expects Housing Associations managing leasehold stock to comply with the spirit of s42 and keep such funds in a bank account that is separate from the Association’s main account.
Tenants and leaseholders paying variable service charges are affected.
Landlords should comply with Statutory Codes.
Tenants and leaseholders paying variable service charges are affected.
Tenants and leaseholders have the right to apply to the Leasehold Valuation Tribunal on the grounds that services or works have not been carried out to a reasonable cost or to a reasonable standard.
Amendments to the law relating to the Landlord and Tenant Acts of 1985 and 1987. Introduction of a current limits above which it is now essential to consult with residents paying variable service charges.
Still can't find what you're looking for? Call our contact centre:
Opening hours: Mon - Fri 9am - 7pm, Sat 10am - 4pm. Extended opening hours on switchover dates.
