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101. Buying a Leasehold Flat

This information sheet refers to the types of tenure available for flat owners, which are leasehold, leasehold with a share of the freehold and commonhold. It provides an indication of the one-off costs that will be incurred in buying leasehold property and the ongoing financial obligations. It explains the role of the solicitor and sets out the different stages of the purchasing process. It also gives a brief summary of what the leaseholder and landlords’ rights and obligations will be. (Please also see The LA Information Sheet 119).

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102. Tenants' Associations

This information sheet defines a Tenants’ Association (TA), clarifies who can form a TA and how this can be achieved. It explains the role of a recognised TA and the two methods of gaining recognition for the TA. It clarifies the importance of a well-drafted constitution and sets out the process of trying to obtain external recognition in cases where this is not granted voluntarily by the landlord.

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103. Service Charges

This information sheet defines service charges, explains why they must be paid and what is meant by a reasonable level of charges. It sets out why service charges are usually payable in advance and what action leaseholders might take if agreement cannot be reached on the service charges demanded. It advises on how far back service charges might be recovered and describes what information must be provided by the landlord.

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104. Management Fees

This information sheet defines management fees and the circumstances in which they are payable. It sets out the services that might typically be provided in return for management fees and provides advice on whether the level of management fees might be challenged. It also includes details of other fees that might be payable that are not usually covered by management fees, such as professional fees.

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105. Reserve Funds

This information sheet explains what reserve funds are for and why they are beneficial to leaseholders. It describes the different types of clauses there are in leases which will determine how leaseholders contribute towards reserve funds. It advises on the differences between reserve fund contributions and other charges such as transfer fees and sets out details of the information leaseholders are entitled to.

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106. Administration Charges

This information sheet defines administration charges and explains the circumstances in which they might be payable. It explains what information must be provided when an administration charge is demanded and how an administration charge might be challenged by leaseholders.

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107. Building Insurance

This information sheet explains who is responsible for arranging buildings insurance for leasehold flats and the scope of the insurance. It explains what is typically covered by buildings insurance and the differences between buildings and contents insurance. It sets out the information the landlord needs to provide and how leaseholders might challenge buildings insurance premiums. It gives details of the other types of insurance that might be arranged by the landlord and provides good practice guidance on the charging of commissions.

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108. Repairs and Improvements

This information sheet explains the differences between repairs, renewals and improvements. It sets out who might be responsible for particular repairs and the typical obligations of the landlord or manager. It defines defects and how these might be dealt with and advises on improvements and whether leaseholders might have to pay for these. It gives details of the obligations for leaseholders in a typical lease and describes the circumstances where insurance might help with the costs.

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109. Section 20 Consultation

This information sheet provides a summary of the landlords’ legal obligations to consult with leaseholders in relation to works on the building and the award of contracts. It explains what action can be taken if the works are urgent and sets out some additional good practice requirements that should apply to consultation. It includes summaries of two recent decisions which have affected this consultation process.

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110. Lease Variations

This information sheet sets out the circumstances in which the landlord, leaseholders or managers might want to vary the terms in leases and whether this might be achievable. It provides a summary of the relevant legislation and explains how in some cases an application to a First-Tier Tribunal might be made.

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111. Right to Manage

This information sheet sets out the objectives of Right To Manage (RTM) which is the legal right of leaseholders to take over the responsibility for the management of their block without proving fault or compensating the landlord. It explains who might be eligible for RTM and a summary of how leaseholders can exercise this right. It also provides details of the consequences that might arise following RTM.

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112. Lease Extensions

This information sheet explains how the term of the lease might be extended and why this is beneficial to leaseholders. It explains that a lease extension can be negotiated with the landlord without some of the restrictions of the statutory process. It sets out in detail the legal process for obtaining a statutory 90-year lease extension and advises on the professional assistance that would be needed.

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113. Enfranchisement

This information sheet defines enfranchisement, which is the leaseholders’ collective right to the purchase of the freehold regardless of whether the landlord wishes to sell. It sets out in detail the legal process including the eligibility criteria and likely costs as well as advising on the professional assistance that would be needed.

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114. Dispute Resolution

This information sheet provides guidance on how disputes, complaints and issues might be regarded. It sets out the disputes most likely to arise in leasehold property and how The Leaseholder Association can help to resolve these. It explains in detail the dispute resolution process, the different types that are available and the reasons why it is usually the most effective method of resolving disputes. It also advises leaseholders of other avenues for complaint such as their landlords’ complaint procedure.

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115. Applying to a First-Tier Tribunal

This information sheet defines the First-Tier Tribunal (Property Chamber) and explains that it is the judicial body that deals with a wide range of leasehold related housing matters. It lists the matters the Tribunal can deal with and provides details of what application fees, if any, are payable. It describes in detail the procedures for applications, hearings, determinations and appeals.

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116. Commonhold

This information sheet provides details of commonhold which is a relatively new system of owning ‘freehold units’ within a building or block comprising of separate properties that allows unit-owners to have a joint responsibility for the common parts. It also sets out the differences between commonhold and leasehold tenure and whether in practice there are any advantages to commonhold.

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117. Right of First Refusal

This information sheet defines the Right of First Refusal (RFR) which provides an opportunity for leaseholders, and some regulated tenants, to collectively purchase the freehold interest in the property they occupy at the same price and terms as the landlord would sell it to another party. It sets out in detail the legal process of the RFR including the eligibility criteria and likely costs, compared to enfranchisement, as well as advising on the professional assistance that would be needed.

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118. Retirement Housing

This information sheet describes the different types of retirement housing available and the level of support that might be provided. It advises prospective purchasers of the specific services that need to be considered before buying and moving into this specialist type of housing. It provides details of these services such as the alarm system and the role of the scheme manager and sets out in detail the procedures required to change the nature of the scheme manager service.

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119. Leaseholders' Rights & Obligations

This information sheet describes the effects of the lease and provides details of ground rent and how it is payable, management audit, debt recovery and forfeiture. It sets out leaseholders’ legal rights which are explored in more detail in other information sheets and the leaseholder and landlords’ rights and obligations under the terms of a typical lease.

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120. Disability Adaptations

This information sheet provides a legal definition of disability under the Equality Act. It explains the implications of the previous legislation, the Disability Discrimination Act, in relation to leasehold property and any changes brought in by the Equality Act. It summarises the Disability Equality Duty for social housing providers. It advises on what a leaseholder defined as disabled can expect when requesting consent in respect of their own property and the communal areas.

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121. Appointment of a Manager

This information sheet defines appointment of a manager, which is the right available to one or more leaseholders to apply to a First-Tier Tribunal for the appointment of a new manager. It sets out in detail the application process including the eligibility criteria and the reasons for considering this action. It provides advice on the circumstances where dispute resolution, Right To Manage or enfranchisement might be more effective solutions to continued discontent with the existing management.

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122. Health and Safety

This information sheet provides a summary of some of the most significant health and safety regulations that apply to blocks of flats. It explains what risk assessments are required in respect of the communal areas. It advises leaseholders what they can expect with regard to fire precautions, electrical and gas safety, control of hazardous substances, legionella and asbestos. It summarises smoke free regulations and sets out the implications of the Housing, Health and Safety Rating System.

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123. Understanding Service Charge Accounts

This information sheet helps leaseholders to interpret budgets and annual service charge accounts including balance sheets and schedules relating to reserve funds. It explains how the legislation, good practice guidance and the terms of the lease affect the format and content of the accounts. It advises leaseholders on what information they are entitled to and sets out what further assistance might be available if they have concerns regarding any aspect of the financial management.

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124. Resident Management Companies

This information sheet defines Resident Management Companies (RMCs), describes how they might arise and advises of the main functions of an RMC. It refers to the need for Articles of Association, which set out the objectives and regulate the activities of RMCs. It explains there is a distinction in the role of the flat-owner as a leaseholder and as a member of the RMC. It sets out the duties the RMC has to perform and summarises the responsibilities of members and directors of the RMC.

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