TPI Level 3 Associate Exam in Leasehold Management cheat sheet

Landlord and Tenant Act 1985 s.18(1): a service charge is an amount payable by a tenant, in addition to rent, for services, repairs, maintenance, insurance or management.

LTA 1985 s.19(1): costs are recoverable only to the extent they are reasonably incurred and the works or services are of a reasonable standard; s.19(2) applies the same test to variable service charges.

LTA 1985 s.20 consultation: qualifying works exceeding £250 per contributing leaseholder, and qualifying long-term agreements exceeding £100 per leaseholder per year, require notice of intention, at least two estimates and a 30-day inspection period.

LTA 1985 s.20B: costs incurred more than 18 months before a written demand are irrecoverable unless the leaseholder was notified in writing, within those 18 months, that the costs had been incurred.

LTA 1985 s.21A: every service charge demand must be accompanied by a summary of the tenant's rights and obligations; s.22 gives a right to inspect supporting accounts and receipts.

Landlord and Tenant Act 1987 ss.47 and 48: service charge demands must state the landlord's name and an address in England and Wales, and sums are not due until that information is given.

Leasehold Reform, Housing and Urban Development Act 1993: a qualifying tenant (long lease, flat, two years' ownership) may extend the lease by 90 years at a peppercorn rent.

Marriage value is payable on lease extension or collective enfranchisement only where 80 years or fewer remain unexpired; above 80 years the premium is calculated without it.

Commonhold and Leasehold Reform Act 2002 s.167: forfeiture for service charge arrears requires the amount to be admitted or agreed, determined by a court or tribunal, or subject to judgment; the Leasehold Reform (Ground Rent) Act 2022 bans ground rent above a peppercorn on new residential leases granted on or after 30 June 2022.

Annual budget per unit = total planned expenditure for the service charge year multiplied by the unit's apportionment percentage fixed in the lease.

Budget headings typically comprise insurance, management fee, common-part repairs and maintenance contracts, utilities, cleaning, gardening, reserve fund contribution and contingency.

Landlord and Tenant Act 1987 s.42: service charge contributions must be held in trust and kept in a designated account separate from the landlord's own money.

Reserve (sinking) fund contributions are collected in advance against a lifecycle or condition survey of major components; the lease must permit collection before the works are carried out.

Year-end reconciliation compares budget to actual, allocates any surplus to the reserve or credits it to leaseholders, and raises a balancing charge only where the lease permits and s.19 reasonableness is satisfied.

LTA 1985 s.21: on written request the landlord must supply a written summary of costs for the relevant period, showing each item, the total, the tenant's share and any surplus or deficit.

LTA 1985 s.27A: the First-tier Tribunal (Property Chamber) determines whether a service charge is payable, by whom, and in what amount.

Administration charges, including fees for late payment, reminder letters and consent requests, are recoverable only if reasonable and are challengeable at the First-tier Tribunal under Schedule 11, Commonhold and Leasehold Reform Act 2002.

Interest on arrears and default charges are recoverable only where the lease expressly provides for them; a lease without such a clause cannot support the charge.

A planned preventative maintenance schedule lists each asset, its service interval, the competent contractor, the statutory basis and the annual cost, and feeds directly into the reserve fund forecast.

LOLER requires passenger lifts to undergo a thorough examination at intervals not exceeding six months, with defects remedied before the lift returns to service.

Gas Safety (Installation and Use) Regulations 1998: gas appliances in let dwellings are checked every 12 months by a Gas Safe registered engineer, with the record given to the tenant and retained for two years.

Water hygiene (HSG274): hot water stored at 60°C and delivered at 50°C within one minute, cold water below 20°C, with sentinel taps, tanks and showers monitored and results logged.

The lease, not custom, allocates repair liability: typically the landlord maintains structure, roof and common parts while the leaseholder maintains the interior, with damage caused by the leaseholder recharged as a service charge item.

Contractor appointment decision rule: verify trade registration (Gas Safe, NICEIC), public liability insurance, health and safety policy and references, then issue a written scope with programme, method statements and risk assessments.

A communal electricity supply serving common parts is normally recharged through the service charge, so lighting, pumps and lift supplies must be metered or apportioned on a documented basis.

Record keeping for each building should include an asset register, O&M manuals, warranties, guarantees, service certificates, insurance valuations and a dated maintenance log.

Building Safety Act 2022: a higher-risk building is at least 18 metres high or has at least 7 storeys (whichever is met first) and contains at least two residential units.

The Building Safety Regulator sits within the Health and Safety Executive and oversees design, construction and occupation of higher-risk buildings; occupation requires a Building Assessment Certificate when directed.

The accountable person must produce a safety case report covering fire and structural safety, operate a resident engagement strategy and maintain the golden thread of building information.

Fire Safety (England) Regulations 2022, for buildings containing two or more domestic premises: record the fire risk assessment, provide residents with fire safety instructions, and give the fire and rescue service building plans and access details.

The same Regulations require best endeavours to check flat entrance fire doors annually and common-part fire doors at least every three months, with results recorded.

Regulatory Reform (Fire Safety) Order 2005: the responsible person must make and keep under review a suitable and sufficient fire risk assessment; there is no fixed statutory interval, so review at least annually and on any material change.

Control of Asbestos Regulations 2012: those responsible for common parts of pre-2000 buildings must survey, register and manage asbestos-containing materials under a duty-to-manage plan.

Building Safety Act 2022 leaseholder protections: a qualifying lease (landlord's lease granted before 14 February 2022, with a leaseholder deed of certificate) is exempt from cladding remediation costs, while non-cladding remediation and interim costs are capped.

Complaint handling decision rule: acknowledge in writing, investigate against the lease and records, respond within published timescales, and signpost the next stage including any redress scheme or tribunal.

Commonhold and Leasehold Reform Act 2002 s.168: before forfeiture for breach of covenant other than non-payment of rent, the landlord must serve a notice specifying the breach and, where capable of remedy, require it to be remedied.

Managing and letting agents must belong to a government-approved redress scheme, which gives leaseholders access to independent adjudication of complaints about agent conduct.

For landlords within the Housing Ombudsman scheme, a complaint may be escalated after the internal process is exhausted, normally eight weeks after the complaint was made.

UK GDPR: a subject access request must be answered without undue delay and within one month, extendable by up to two months where the request is complex.

Equality Act 2010: managing agents and landlords must not discriminate in providing services and must make reasonable adjustments for disabled leaseholders, for example in access, communication formats and meeting arrangements.

Disputes about service charge payability, reasonableness or administration charges are determined by the First-tier Tribunal (Property Chamber); mediation or a without-prejudice settlement discussion can be attempted first and usually shortens resolution time.

Records that support dispute resolution include dated correspondence, consultation notices and responses, contractor estimates and invoices, inspection reports and minutes of residents' meetings.