Summary
1. This section states that specific information must be included in a Notice sent under Section 146 of the Law of Property Act 1925.
2. If the Notice does not contain this information then it is ‘ineffective’ (this means that it does not meet the requirements of the law) when the reason for sending the Notice is failure to pay a service charge and a court will not grant Forfeiture.
What is a Notice under Section 146 of the Law of Property Act 1925?
1. Section 146 of the Law of Property Act 1925 gives a Landlord a ‘right of re-entry’ to their property in the event that the leaseholder breaches the term of their lease. This process is known as Forfeiture and it can happen when a Leaseholder fails to pay a Service Charge.
2. If a Court grants Forfeiture of a Lease, the Leaseholder loses the right to use the property without compensation from the Landlord for that loss.
3. Before a Landlord can apply to a Court to exercise this right of Forfeiture they must first send a notice to the Leaseholder giving them a ‘reasonable’ period of time to remedy the breach of their lease (ie. pay the service charge or do something else to comply with the terms of their lease).
4. This Notice is commonly known as a ‘Section 146 Notice’ or ‘Forfeiture Notice’.
What does Section 82 say must be included in the Notice for Forfeiture?
1. Section 146 of the Law of Property Act 1925 says that the Notice must contain:
i. A description of the breach of lease in relation to which the Notice has been sent.
ii. A request that the Leaseholder remedies the breach of lease described.
iii. A request that the Leaseholder pay to the Landlord a sum of money in compensation for the breach of lease.
2. Section 82 of the Housing Act 1996 adds further information which the Notice must contain:
i. A statement that Section 81 of the Housing Act 1996 applies, and an explanation that this means that Forfeiture cannot be granted until there has been a determination by a Court or Tribunal if Forfeiture is being sort in respect of a failure to pay a Service Charge.
ii. A clear indication that failure to comply with the Notice may result in the Lease being forfeited.
3. Section 82 also includes a provision allowing the Secretary of State (Government minister) the right to make regulations for specific wording to be used in the Notice.
4. At the time of writing (August 2014) no such regulations have been made.
Click on the link to read more about The Housing Act 1996