TPI Level 3 Associate Exam in Leasehold Management flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Service charge definition

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

Section 19 reasonableness test

Under s.19 Landlord and Tenant Act 1985, service charge costs are recoverable only to the extent they were reasonably incurred and the works or services were of a reasonable standard.

Section 20 consultation threshold

Qualifying works costing more than £250 per contributing leaseholder, or long-term agreements over £100 per leaseholder per year, require formal consultation with two estimates and a 30-day inspection period.

Section 20B eighteen-month rule

Costs incurred more than 18 months before a written service charge demand cannot be recovered unless the leaseholder was given written notice within those 18 months that the costs had been incurred.

Qualifying lease for extension

Under the Leasehold Reform, Housing and Urban Development Act 1993 a long lease of a flat held for two years qualifies the tenant for a 90-year extension at a peppercorn rent.

Marriage value threshold

Marriage value is included in lease extension or collective enfranchisement premiums only where the lease has 80 years or fewer unexpired; it is shared between landlord and tenant.

Forfeiture restrictions for arrears

Commonhold and Leasehold Reform Act 2002 s.167 bars forfeiture for service charge arrears unless the amount is admitted, agreed, determined by a tribunal or court, or subject to judgment.

Sinking fund purpose

A reserve fund collects regular contributions towards future major or cyclical works, smoothing cost peaks; contributions must be held in trust under s.42 Landlord and Tenant Act 1987.

Service charge apportionment

Each leaseholder's share is fixed by the lease, usually by floor area or equal shares; where the lease is unclear the First-tier Tribunal can determine a reasonable apportionment.

Section 21 accounts summary

A leaseholder may request a written summary of service charge costs for the last accounting period, showing each item, the total, their share and any surplus or deficit.

Section 22 inspection right

Within one month of a written request, the landlord must allow the leaseholder to inspect the accounts, receipts and other documents supporting the service charge summary.

Qualifying long-term agreement

An agreement for a term of more than 12 months, such as a maintenance or insurance contract, where the annual cost per leaseholder exceeds £100, triggers section 20 consultation.

Tribunal service charge jurisdiction

Under s.27A Landlord and Tenant Act 1985 the First-tier Tribunal (Property Chamber) decides whether a service charge is payable, by whom, and in what amount.

Administration charges reasonableness

Under Schedule 11 Commonhold and Leasehold Reform Act 2002, administration charges such as late payment fees or consent fees must be reasonable and can be challenged at the tribunal.

Planned preventative maintenance

A scheduled programme of inspections and servicing for each building asset, used to forecast costs, extend asset life and set reserve fund contributions.

Lift thorough examination interval

Passenger lifts must be thoroughly examined under LOLER at intervals not exceeding six months; the examination report must be kept and defects remedied before further use.

Gas safety check frequency

Gas appliances in let dwellings must be checked every 12 months by a Gas Safe registered engineer, with the record given to the tenant and retained for two years.

Legionella temperature controls

Hot water should be stored at 60°C and delivered at 50°C within one minute; cold water should remain below 20°C, with sentinel outlets monitored and results recorded.

Repairing obligations split

The lease allocates repair liability: the landlord typically maintains structure and common parts, the leaseholder the flat interior, with leaseholder-caused damage recharged through the service charge.

Contractor competence checks

Before appointment, verify trade registration such as Gas Safe or NICEIC, insurance cover, health and safety arrangements and references, and obtain a written scope with method statements and risk assessments.

Higher-risk building definition

Under the Building Safety Act 2022 a building is higher-risk if it is at least 18 metres high or has at least 7 storeys, and contains at least two residential units.

Accountable person duties

The accountable person for a higher-risk building must assess and manage fire and structural safety risks, produce a safety case report and maintain the golden thread of information.

Fire Safety England Regulations

The Fire Safety (England) Regulations 2022 require, for buildings with two or more domestic premises, a recorded fire risk assessment, resident fire safety instructions and information provided to the fire service.

Flat entrance door checks

In buildings containing two or more domestic premises, the responsible person must use best endeavours to check flat entrance fire doors annually and common-part fire doors at least quarterly.

Asbestos duty to manage

Under the Control of Asbestos Regulations 2012, those responsible for common parts of pre-2000 buildings must survey, register and manage asbestos-containing materials under a written management plan.

Leaseholder remediation protections

Under the Building Safety Act 2022, qualifying leaseholders are exempt from cladding remediation costs, non-cladding remediation and interim costs are capped, and a leaseholder deed of certificate is required.

Redress scheme membership

Property agents carrying out lettings, sales or management work must belong to a government-approved redress scheme, giving consumers access to independent dispute resolution.

Section 168 breach notice

Before forfeiture for breach of covenant other than non-payment of rent, the landlord must serve a notice specifying the breach and, where it is capable of remedy, requiring remedy.

Housing Ombudsman escalation

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

Subject access request deadline

Under UK GDPR a data controller must respond to a leaseholder's subject access request without undue delay and within one month, extendable by two months for complex requests.

Reasonable adjustments duty

The Equality Act 2010 requires service providers, including managing agents, to avoid discriminatory practices and make reasonable adjustments for disabled leaseholders in access and communication.

Mediation before tribunal

Mediation is a voluntary, without-prejudice process that can resolve service charge, nuisance or communication disputes before an application is made to the First-tier Tribunal.