Section 47 and 48: What it really requires?
14th April 2022
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14th April 2022
We receive a constant stream of requests for advice on what is actually required in s.47 and s.48 notices and who is liable to provide them, when, what addresses count etc. So, to assist, we have set out here a round up of previous Legal Updates on the topic and what we hope is a helpful guide as to when and what is required by whom together with some stencil wording of what you actually need to include in your notices.
The requirement to provide a landlord’s name and address on legal notices such as demands and tenancy agreements is potentially a contentious issue for managing agents. The two main provisions that deal with this area are sections 47 and 48 of Landlord and Tenant Act 1987 (“the Act”). The distinction between the two is important as is the need to understand what those provisions actually require.
What the law says
Section 48 of the Act requires landlords to provide an address, which must be in England or Wales, at which notices may be served on them by their leaseholders. A failure to properly comply with this provision results in rent or service charges demanded by the landlord being considered not due (despite demand), until the landlord does provide their address.
Section 47 of the Act requires that the leaseholder must be provided with the name and address of the landlord on any demand for rent or other sums due under the terms of the long lease. If, however, the landlord’s address is not in England and Wales, an address in England or Wales must be given.
This means that, where a compliant demand has not been issued, any legal costs incurred in enforcing payment or interest claimed on the unpaid charges shall not be recoverable from the leaseholder, as the service charges/ground rents are not due until a complaint notice has been issued. So the effect of Sections 47 and 48 is suspensory in nature, and a failure to comply only suspends liability until there has been full compliance.
In Beitov Properties Ltd v Elliston Martin [2012] UKUT 133 (LC), the Upper Tribunal held that providing a managing agents address for the landlord as the Section 47 address is not sufficient. The Upper Tribunal held that was is required is the landlord’s actual address whether that be his home address, registered office or his usual place of business (in the case of corporate entities). In many cases, the landlord’s registered office will also be the managing agents address, but in in other cases it will not and it is important that Companies House is regularly checked to ensure the relevant Section 47 address being given is correct. By contrast, the address to be given under Section 48 can be any address at which the landlord is prepared to accept notices (e.g. this does not have to be the landlord’s actual address, and can be the managing agent’s address). The purpose of Section 47 is for the leaseholder to have sufficient information about their landlord to identify them.
For the purposes of Sections 47 and 48, references to a landlord includes a RTM company (Para 12, Sch.7, Commonhold and Leasehold Reform Act 2002), so details must be provided for the RTM company. This is not the case for RMCs or other management companies party to the lease, but it is prudent to include the management company’s details on the demand in any event, provided that the landlord’s details are also stated.
In Westlake Estates Ltd v Yinusa [2019] UKUT 225 (LC), the Upper Tribunal held that, whilst the Section 47 notice did not have to expressly state that the name address being given was the landlord’s, where more than one name and address is given on a demand (e.g. the landlord’s and any management company’s), an indication of which party is the landlord would be needed to avoid confusion.
Template notices
We have set out below some template notices which can be used depending on whether the service charges are due to the landlord, an RTM company or management company (e.g. tripartite lease)
Landlord only - no RTM or management company
“For the purposes of Sections 47 and 48 of the Landlord and Tenant Act 1987, the Landlord’s name and address at which notices (including notices in proceedings) can be served is…..”
RTM company
“For the purposes of Sections 47 and 48 of the Landlord and Tenant Act 1987, the Landlord’s name and address at which notices (including notices in proceedings) can be served is [NAME AND ADDRESS OF LANDLORD - REGISTERED OFFICE (IF COMPANY) OR RESIDENTIAL ADDRESS (IF INDVIDUAL)].”
These charges are demanded on behalf of [NAME OF RTM COMPANY] whose address at which notices (including notices in proceedings) can be served is [REGISTERED OFFICE OF RTM COMPANY]”
Management company (tri-partite lease)
“For the purposes of Sections 47 and 48 of the Landlord and Tenant Act 1987, the Landlord’s name and address at which notices (including notices in proceedings) can be served is [NAME AND ADDRESS OF LANDLORD - REGISTERED OFFICE (IF COMPANY) OR RESIDENTIAL ADDRESS (IF INDVIDUAL)].”
These charges are demanded on behalf of [NAME OF MANAGEMENT COMPANY] whose address at which notices (including notices in proceedings) can be served is [REGISTERED OFFICE OF MANAGEMENT COMPANY]”
We trust that you find the above helpful, but please feel free to contact a member of the team on 01435 897297 or info@kdllaw.com should you have any queries whatsoever.
Disclaimer
This legal update is provided free of charge for information purposes only; it does not constitute legal advice and should not be relied on as such. No responsibility for the accuracy and/or correctness of the information and commentary set out in the article, or for any consequences of relying on it, is assumed or accepted by any member of KDL Law or by KDL Law as a whole.
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