Landlord and Tenant Act 1987
The Landlord and Tenant Act 1987 is the second of the two main principle statutory Acts relevant to leasehold management, expanding the framework of leaseholder rights by supporting the 1985 Act:
- s5: (landlord required to serve offer notice to tenants) when disposing of the freehold interest (the Right of First Refusal) more on which can be read here;
- s21 (tenants right to apply to court to appoint a manager), more on which can be read here;
- s22 (preliminary notice by tenant);
- s23 (application to court for appointment of a manager);
- s24 (appointment of manager by the court);
- s25 (compulsory acquisition of the landlord’s interest by qualifying tenants);
- s26 (qualifying tenants);
- s27 (preliminary notice by tenants);
- s28 (applications for acquisition orders);
- s29 (conditions for making acquisition orders);
- s30 (content of acquisition orders);
- s31 (determination of terms);
- s32 (discharge of existing mortgages);
- s33 (acquisition order where landlord cannot be found), more on which can be read here;
- s34 (discharge of acquisition order and withdrawal by tenants);
- 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 all variable service charge payments should be held in ring-fenced designated bank accounts. Such accounts must contain the words ‘trust’, ‘client’ or the property name in the bank account title and they must not be mixed up with the business accounts of whoever is holding them. Unless required by the lease, there’s no obligation to put reserve funds into separate bank accounts.
- s48 (notification by landlord of address for service of notices).
Note: s60 (general interpretation) defines technical terms.
An overview of the third Act of Parliament concerned with block management, that of the Leasehold Housing, Reform and Urban Development Act 1993 can be found here.