Leaseholder right to information when in breach of lease

[helenj]

Hi

I share the freehold in a block. One of the leaseholders is in breach of their lease. We have not demanded ground rent or service charges whilst the dispute continues. However, the leaseholder is now asking for copies of accounts and the insurance certificate - they have not contributed towards either. Should we provide them? if we did would this affect our rights?

Thanks

HelenJ

[leaseholdanswers]

Unless they have made a statutory request ( s21 LTA 1985 for accounts or s30a LTA 1985/87) then they can be safely ignored, for now.

If there is a dispute then get on with mediation arbitration FTT action or court action to resolve it rather than let it drift on.

Your solicitor can of course provide the information on a without prejudice basis when taking into consderation the dispute and current a state of play.

Focus on the main issue of resolving the dispute.

[helenj]

Thank you for your response. They have sent a request for copies to the freeholders. Am I right in thinking that there is no prescribed format, they just need to request it.

[leaseholdanswers]

Helen, I have answered that question already.......Do not send the information as in most cases that waives the right to forfeit the lease as remady to a breach, or if you do it must be done in a particular way.

You need to be getting on with acting on the breach that exists. What is it and what course of action are you following?

its tempting to just focus on one issue- their request- however the two are interelated as I suspect that the request is an attempt to broaden the dispute and or undermine your position.

[andydd]

There is no set format for the requests for summary or insurance information.

What LHA is saying is that unless they have specifically said 'This is a request under S30..blah..blah' then the request can be ignored, although generally speaking The RICS code does imply that FH should provide answers/communication to questions and requests.

As mentioned you should be progressing the breach issue otherwise you cant service charges/ground rent and the LH can legitimately withhold payment and it may turn out that a court/FTT eventually finds that there is no breach.

[Lawcruncher]

The request for insurance details just needs to be in writing. There is no need for the request to refer to the relevant legislation.

[leaseholdanswers]

The request for insurance details just needs to be in writing. There is no need for the request to refer to the relevant legislation.

Sadly that is not correct as it was determined, a long time ago, that the request must be made in a form that reflects the right being exercised. That is particularly relevant as the rights are for a particular summary, not a “copy of the insurance”, and two part, in that information that is provided is conditional on one right being exercised first before the other.

Moreover the rights do not require that the information is provided in the way that I suspect has been asked, and most likely in the case of the full policy which would satisfy the request, can at the insured’s choice, simply allow inspection.

[Lawcruncher]

Sadly that is not correct as it was determined, a long time ago, that the request must be made in a form that reflects the right being exercised. That is particularly relevant as the rights are for a particular summary, not a “copy of the insurance”, and two part, in that information that is provided is conditional on one right being exercised first before the other.

Moreover the rights do not require that the information is provided in the way that I suspect has been asked, and most likely in the case of the full policy which would satisfy the request, can at the insured’s choice, simply allow inspection.

I think I would like to see the authority for that. Given that a failure to comply is a criminal offence, I can see that the tenant's request has to be clear, but I can see nothing in the legalisation which requires chapter and verse to be cited.

[leaseholdanswers]

I am not refering to "chapter and verse" but must clearly relate to the right on which they rely. That is a basic legal principle, but a request for a summary is very different thing to "send me the building insurance", particularly in this context with the structure of the rights. All I can add is that the Magistrates in two hearings agreed with me.