Rules & Regulations

The Commonhold and Leasehold Reform Act 2002 requires that as part of each Statement of Account you must be supplied with a “summary of the rights and obligations of tenants of dwellings in relation to service charges”. This is a typical Summary. The summary which follows is taken partly from Fact Sheet 6 in relation to the Act published by the Office of the Deputy Prime Minister.
To get this electronically try
Rights under the 1985 Act:
  • The right to be consulted about major works (major for this purpose now means costing over £6,250)
  • The right for service charges to be reasonable 
  • The right to challenge the reasonableness of any service charge or of the standard of works 
  • The right to certain information about service charges
New rights under the 2002 Act:
  • An annual accounting statement providing information about monies paid into the service charge trust fund, and costs incurred by the landlord. This is that statement. You can withhold payment if this requirement is not met. The Yorkshire Bank has been advised that the account is a designated account for the purpose of the Act. All Service Charge monies are paid into the Yorkshire Bank account. 
  • A summary of your rights and obligations in relation to Service Charges. The right to inspect documentation and to take copies or extracts from documents including accounts and receipts relevant to this statement. To exercise this right contact De Montfort Court Management (Leicester) Ltd at
  • The right to challenge Service Charges at a Leasehold Valuation Tribunal. The nearest such tribunal is located at: 

    2 nd Floor
    East Wing
    Ladywood House
    45/46 Stephenson Street
    B2 4UZ
    Tel: 0845 100 2615
They publish a brochure called “applying to a Leasehold Valuation Tribunal – service charges, insurance, management”. A challenge to the reasonableness of Service Charges at De Montfort Court would attract a hearing fee of £350.
In addition the following rights exist:
  • The right to inspect the insurance policy. You receive a copy of the certificate once a year. The policy is available. 
  • A right to challenge, in a Leasehold Valuation Tribunal, the coverage or cost of any insurance policy was created by the 1996 Housing Act. 
  • The right to be consulted in respect of long term contracts for works or services. Long term means in excess of 12 months.
  • The right to create a Right to Manage company to take over the management of the property. Note that our current policy is that any leaseholder may become a Director of this Company so that you have a de facto right to manage without creating a Right to Manage company.
Your obligation in respect of reasonable Service Charges is to pay them. In respect of the lease you hold your obligation is to pay Interim Charges within 21 days 0f 24 June and 25 December. The Directors have agreed to allow you to pay by instalments but that agreement is conditional on receipt of prompt payment on the 24 th of each month, commencing on 24 June each year.


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