Explanatory note

A tenant with a lease of a flat granted after 6th January 1987 in pursuance of the right to buy or the right to a shared ownership lease under Part V of the Housing Act 1985 has certain rights in respect of service charges and improvement contributions. His liability to contribute to the costs of repairs and improvements incurred during, broadly, the first five years of the lease is limited by reference to estimates given before the lease was granted, with an allowance for inflation. This order prescribes methods for calculating the inflation allowance. Different methods are prescribed for cases where the repairs or improvements were itemised in the estimates and those where they were not.

This order also prescribes the information to be given to such a tenant when he is asked to contribute to such costs incurred during that 5 year period.