Leasehold Reform, Housing and Urban Development Act 1993
The Leasehold Reform, Housing & Urban Development Act 1993 is the third of the 5 main Acts of Parliament relating to the management of blocks of flats. Leaseholders of blocks of flats finally got the right to the following:
- They were able to collectively purchase their freehold;
- Leaseholders who pay variable service charges got the right to a management audit. Whilst qualification is by not less than two thirds of leaseholders acting together, individual leaseholders also have the right where theirs is either the only dwelling, or one of two.
- Leaseholders became legally entitled to a statutory lease extension of 90 years added onto the unexpired term (after owning the property after two years or more). This right was finally granted because leaseholders had been getting increasingly angry for decades that not only had they paid a large amount of money up front, and continued to pay for repairs, maintenance and buildings insurance but the freeholders were making yet more money by charging what they liked for granting consents and extending the lease.