landlord and tenant act 1987
📖 What is landlord and tenant act 1987? Meaning and definition
The Landlord and Tenant Act 1987 is a significant Act in UK property law, particularly for leaseholders and landlords of residential properties. It provides mechanisms for leaseholders to address certain issues related to their leases and the management of their buildings. For example, under section 37 of the Act, leaseholders can apply to the First-tier Tribunal (Property Chamber) to vary two or more leases by a majority, typically to correct inconsistencies or make necessary updates across multiple leases within a building. This process involves an application to the Tribunal, which then determines whether to grant the order varying the leases.
Another key aspect of the Act, as seen in the excerpts, is the provision for management orders. Section 24 of the Landlord and Tenant Act 1987 allows for applications for interlocutory management orders. These orders can be made by the Tribunal when circumstances make it just and convenient to do so, often in situations where there are issues with the current management of the property. Such an order can remain in force until a further order from the Tribunal, providing a temporary solution to management problems.
The Act also addresses other aspects, such as the variation of leases under sections 35(2), (3A), and (4), which can be used to adjust elements like the percentage payable towards service charges to ensure fairness and consistency among lessees. The Tribunal considers whether all relevant parties have been made aware of the application and if there are any objections. The aim is often to bring lease terms into line with others in the building and ensure the collective percentage payable does not exceed 100%.
📋 Requirements
- Application to vary two or more leases must be by a majority (s37)
- For an interlocutory management order, there must be circumstances making it just and convenient (s24(b))
- For lease variations, all other lessees must be made aware of the application (s35)
- The proposed variation should aim to bring lease terms into line with other leases and ensure collective percentages are correct (s35)
📝 Procedure
- An application is made to the First-tier Tribunal (Property Chamber)
- The Tribunal issues directions, which parties must comply with
- The Tribunal holds a hearing, which may be remote
- The Tribunal considers the application, evidence, and any objections
- The Tribunal makes a decision, which may include an order varying leases or an interlocutory management order
💡 Examples
- A group of flat owners in a building applies to the Tribunal under section 37 of the Act to change a clause in their leases that is inconsistent across several flats.
- Leaseholders apply for an interlocutory management order under section 24 of the Act because they are dissatisfied with the current property management and believe it is just and convenient for the Tribunal to intervene.
- The Tribunal uses section 35 of the Act to vary a lease, reducing one leaseholder's service charge percentage to ensure the total payable by all lessees does not exceed 100% and aligns with other leases.
- A landlord and freeholder from 2018 is involved in an application to vary leases by a majority under s37 of the Landlord and Tenant Act 1987.
📚 Legal basis
- Landlord and Tenant Act 1987
- Landlord and Tenant Act 1985
❓ Frequently asked questions
What does 'vary two or more leases by a majority' mean under the Landlord and Tenant Act 1987?
This refers to a process under section 37 of the Act where leaseholders can apply to the First-tier Tribunal to change specific terms in their leases, provided a majority of the affected leaseholders agree to the proposed changes. This is often done to correct errors or update outdated clauses across multiple leases in a building.
When can an 'interlocutory management order' be made under the Landlord and Tenant Act 1987?
An interlocutory management order can be made by the Tribunal under section 24 of the Act when it is satisfied that there are circumstances making it just and convenient to do so. These orders are typically temporary and aim to address issues with the management of a property until a more permanent solution can be found.
Does the Landlord and Tenant Act 1987 only apply to residential properties?
The case excerpts provided specifically refer to flats and leaseholders in residential property contexts, indicating its relevance to residential property matters, such as varying leases for flats and making management orders for residential buildings.
Can the Landlord and Tenant Act 1987 affect service charges?
Yes, the Act can affect service charges. As seen in the excerpts, the Tribunal can make orders under section 35 of the Act to vary leases, which might include adjusting the percentage payable by a lessee towards service charges to ensure fairness and consistency with other leases in the building.
What is the role of the First-tier Tribunal in relation to the Landlord and Tenant Act 1987?
The First-tier Tribunal (Property Chamber) is the body that hears applications and makes decisions under the Landlord and Tenant Act 1987. It determines whether to grant orders for lease variations, make management orders, and resolve disputes related to the Act's provisions.