Landlord and Tenant Act 1987
The Landlord and Tenant Act 1987 is not only the second principle Act relevant to leasehold management but is also the second of the two main statutory acts providing the framework for the rights of leaseholders.
- s21 (tenants right to apply to court to appoint a manager);
- s22 (preliminary notice by tenant);
- s23 (application to court for appointment of a manager);
- s24 (appointment of manager by the court);
- s35 (application by party to lease to vary a lease);
- s36 (application by respondent for variation of other leases);
- s37 (application by majority of parties for variation of leases);
- s42 (service charge contributions to be held in trust). Service charge monies are ‘trust money’ and should be held in ring-fenced designated bank accounts. Unless required by the lease, there’s no obligation to put reserve funds into separate bank accounts. However, the RICS Code states that such funds should be placed in an interest earning account.
- s48 (notification by landlord of address for service of notices).
The next major Act is that of the Leasehold Reform, Housing and Urban Development Act 1993 and a short summary can be found here.