Where a leaseholder has previously extended the lease under the statutory right provided by the 1967 Act, the new Act abolishes the restriction on buying the freehold after extension and allows security of tenure under the Local Government and Housing Act 1989 to apply at the end of the term as an alternative to enfranchisement. In addition, a sub -tenant whose long lease has been created out of a lease that was extended under the 1967 Act will no longer be excluded from rights to buy the freehold.

Where the Landlord is absent and cannot be traced the Act allows for the tenant to apply for a Vesting Order to the County Court instead of the High Court, in order to significantly reduce the costs of such application.

The residence test is partly abolished in that it will no longer apply to residential leases, however the tenant must have owned the lease of the house for at least two years. If the lease is one to which Part II Landlord and Tenant Act applies then the residence test applies but is reduced to two years from the current three.

Personal representatives of a deceased's estate will be entitled to make the claim for the freehold or lease extension provided the tenant had the right to do so immediately before his death but they must not serve the Notice of Claim any later than two years after the grant of probate or letters of administration.

The same changes as made to the 1993 Act regarding marriage value and the share of marriage value are made to the 1967 Act. For further information please refer to the publication Houses - Qualification and Valuation for Enfranchisement.

Applications for variation may now be made to the Leasehold Valuation Tribunal rather than the County Court.

The Tribunal will have powers to require parties before it to give it any information it may reasonably require on a minimum of 14 days notice subject to criminal action and a fine for failure to comply.

New procedural regulations give the Tribunal the power to order costs (up to £500 unless otherwise decided by regulations) where an action in the LVT is dismissed as frivolous or vexatious or where it decides a party has acted 'frivolously, vexatiously, abusively, disruptively, or otherwise unreasonably in connection with the proceedings'. This may overcome some problems where parties are challenging matters without grounds just to delay matters or being unco-operative especially in relation to production of information prior to a hearing.

The Act provides welcome attempts to deal with long standing criticism and disputes over the current system of management of leasehold properties and proposes remedies to practical and interpretational problems that have proven a source of difficulty for landlords and tenants and those advising them. It also goes some way to redress the balance of power between landlord and tenant arguably reflecting the relative investment values in the property.

This is not meant to describe or give a full interpretation of the law; only the courts can do that. Nor does it cover every case. If you are in any doubt about your rights and duties, then seek specific advice.

The lease will usually set out the percentage payable by the lessee, but sometimes the lease just stipulates a 'fair' or 'just' proportion. If differing groups of occupiers benefit from different services, there may provision for more than one percentage to be paid.

The lease will say whether advance payments are to be made and, if so, whether they are based on the previous year's cost or an estimate of the cost in the year to come. There will always be provision for a final charge at the year end when the actual costs are known. If interim payments have been made, and they exceed expenditure, the final 'charge' will be a credit.