The Commonhold and Leasehold Reform Act 2002, section 151 Note: If the long-term agreement allows for work to be carried out in the immovable property (e.g. B a collective agreement for general maintenance), and if such work entails a fee for a tenant of more than £250, the lessor must carry out a separate consultation, in accordance with Schedule 3 of the 2003 Service Charge Rules. Initial advice on the contract set out in Schedule 1 or Schedule 2 does not mean that the lessor does not have to provide separate advice for the work. Example of a declaration of intent to enter into a long-term agreement that does not require public notice The owner had argued that the words «unless terminated» could be included in the clause and that the word «bis» should be read as «except». The Court contradicted and found that the words had to be implied or modified, indicating that the natural meaning of the words does not support this interpretation in itself. The owner will then ask for estimates of the contractors they have selected. They should also try to ask for estimates from contractors appointed by tenants and rta. The criteria that tenants and contractors designated by the ATR must meet to tender for the work are described in the previous section on tenant-designated contractors and RTAs. In Poynders Court Ltd v GLS Property Management Ltd, the Upper Tribunal (Lands Chamber) held that a management contract with no fixed term, but which served any party the right to terminate at any time with a period of three months, was a QLTA.
HHJ Gerald felt that the agreement was practically permanent and distinguished between termination and duration. « 48. In my opinion, an agreement for a given year, then from one year to the next, to remain in formal notice, is not «an agreement of a duration of more than 12 months» (put forward by HHJ Marshall) within the meaning of this part of the statute. I come to this conclusion with a little hesitation. In other words, the structure of the law is that the definition of a long-term qualifying contract must apply to a contract in which tenants would have to make a definitive contribution for a period of more than 12 months. The legal limitation of the recoverable amount applies only to receivables for which work has been performed or the service has been performed. For the service fee to be paid on account (if the rental agreement allows it), the only limit of the refundable amount is whether the amount is reasonable.. . . .