Leashold property-lease

Adria74

Hello,I am in the process of buying a leasehold maisonette and we are currently reviewing the lease. The lease dates back to 1953, so one can imagine that many things have changed since then. I have already sent an inquiry to my solicitor, but I’m curious if anyone here has encountered a similar situation.

Specifically, the lease does not mention anything about the amount of the service charge. I am responsible, along with another leaseholder, for repairs which should be valued by a surveyor appointed by the freeholder, and their decision is final.

How does this relate to the law that came into effect in 1987, the Landlord and Tenant Act, especially Section 20? Does the lease from 1953, which is currently being signed, override the new legal regulations, or do the new legal provisions take precedence?

eddddy

Adria74 said:

The lease dates back to 1953, so one can imagine that many things have changed since then. 

The lease as it was written in 1953 still applies - nothing will have changed in relation to the content of the lease.  (Unless there has been a formal lease variation.)

But as you suggest, there might be legislation which overrides some aspects of the lease.

Adria74 said:

Specifically, the lease does not mention anything about the amount of the service charge. 

A long lease should never specify the amount of service charge - it would be unworkable.

Typically (but not always), a lease will say that

• the freeholder is responsible for insuring the building, and maintaining and repairing parts of the building

• the cost of the insurance, maintenance and repairs will be shared across all the leaseholders - that cost is called the service charge

In 1953, whoever wrote the lease would have no idea about how much buildings insurance would cost in 2025, or what repairs would be needed in 2025, or what tradesmen / contractors would charge for repairs in 2025.

So the lease will not mention what those costs might be.

Adria74 said:

I am responsible, along with another leaseholder, for repairs which should be valued by a surveyor appointed by the freeholder, and their decision is final.

Are you sure that the lease says that any repairs should be valued by a surveyor? That doesn't make too much sense.

Often leases will say that, if there is a dispute, a surveyor should be brought in to make a final decision.

For example, if

• one party says the windows are rotten and need replacing at a cost of £50k
• another party says the windows just need repairing at a cost of £10k (and replacing the windows should only cost £30k anyway)

... then a surveyor should be brought in to decide which route is most reasonable.

Adria74 said:

How does this relate to the law that came into effect in 1987, the Landlord and Tenant Act, especially Section 20? Does the lease from 1953, which is currently being signed, override the new legal regulations, or do the new legal provisions take precedence?

The Landlord and Tenant act 1985 says that service charges must be reasonable. If you believe they are not reasonable, you can challenge them at a tribunal.

But if, for example, the freeholder's professional surveyor has said that "replacing the windows at a cost of £50k" is reasonable, you'd probably have to find your own professional surveyor to give evidence that it's not reasonable - and let the tribunal decide which surveyor is right.

Section 20 consultations would also be required, but again you can challenge the outcome at tribunal. (But again, it would probably be an argument between surveyors.)