ANNUAL REPORT
2007
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1. Board of management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 2. Outgoing and incoming Chairmans’ reports 3. Chief Executive’s report 4. About LEASE
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5. Demand and response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 6. LEASE website
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7. Management technology
8. Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 9. LEASE Mediation Service
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10. Conferences and outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 11. Social Sector Working Party 12. Commonhold 13. The future
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14. Statement of Chief Executive’s responsibilities 15. LEASE publications list
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LEASE Financial Statements for the year ended 31 March 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Appendix 1: Agreed Business Plan 2006-7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 Appendix 2: Accounts direction given by the Secretary of State . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
Contents
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Contents
1. Board of management
1. Board of management
Chairman Directors David Marcus (until 31st December 2006) Deep Sagar (from 1st January 2007) Jennifer Ellis Robert Levene Roger Malvern Trevor Moross Chief Executive Peter Haler
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Writing this report feels almost like writing one’s own obituary. I decided some time ago, when elections for the new board were announced and tied in with Peter Haler’s probable retirement, that I would not stand for the Board again. I have been a member since LEASE was created – indeed Ron Armstrong, who left the Board in 2004, and I did the creation – so this will therefore be my last contribution to the annual report. When I recall how we started LEASE more or less on a wing and a prayer, we rarely knew if next year’s funding was guaranteed; the fact that we have now reached Non-Departmental Public Body (NDPB) status shows how far we have come since 1993. I like to think therefore that I, together with others, have created something worthwhile. I cannot end however without paying tribute to Peter Haler. It is thanks to Peter’s verve and energy that LEASE has developed into such a fine organisation and I am sure it will develop further. As long as flats are being built there will be disputes and LEASE will be even more needed in the future.
David Marcus Chairman (April-December 2006)
2. Outgoing Chairman’s report
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2. Outgoing Chairman’s report
2. Incoming Chairman’s report
2. Incoming Chairman’s report
I always believed in LEASE’s cause. Thus I felt privileged to have been appointed its chair. In the last few months, though, I feel more hugely privileged than I had imagined. Almost everyone I have met – leaseholders, landlords, solicitors, lenders, valuers and others in the industry – has talked about how much they have appreciated LEASE’s work and its role. Peter Haler and his staff can be justly proud. And for their leadership and contribution I would like to thank the whole Board and in particular David Marcus. Partly because David and Peter are moving on, one of LEASE’s main objectives in the new year is to recruit a new Board and a new Chief Executive quickly. Along with that goes the objective of organising LEASE fully as a new NDPB. Having done those structural things, I envisage the new Board and staff led by the Chief Executive engaging with all stakeholders towards getting a general agreement about short-term direction so that present achievements are consolidated. In this debate I hope that we will be able to consider some of the following elements: How could LEASE be better known and reach more customers? Which services are most appropriate in addition to advice: mediation, conferences, literature etc? What is the optimum channel mix for advice: face-to-face, telephone, email/internet? I look forward to the new year and to working with the new Board, the staff and all in the industry.
Deep Sagar Chairman (January-March 2007)
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This has been another year of significant growth for LEASE, with a 12% increase in output, a further substantial uplift in usage of the LEASE website, additional events by our LEASE Conferences arm and the formal adoption of our pilot Mediation service as a core LEASE activity. The Social Sector Working Party, chaired by LEASE completed a research project on service charges in the sector and submitted a report to the Minister with a wide range of recommendations for action. Our achievements have been recognised through a substantial uplift in funding for 2007-8, for which we are grateful. Meanwhile it has been a year of change at Board level with the appointment of a new Chairman for the NDPB by the Minister and we welcome Deep Sagar to the organisation. The year ended with the existing LEASE Board in place but arrangements ongoing for the recruitment and appointment of new Directors early in the 2007-8 year; this will complete LEASE’s transition to full NDPB operation. On a personal note, I have decided to retire during 2007 and therefore this will be my final Annual Report as Chief Executive of LEASE. This has been a painful decision, taken entirely as a result of ill-health, but it is an appropriate time to hand over the reins; the organisation is healthy and on firm financial footings as a NDPB with generous funding for next year and the new Board should be in a position to build on LEASE’s growth and success. The present organisation is a far cry from our small beginnings in 1994 and I am hugely grateful to the consistent support and encouragement we have been able to rely on from the officials at Communities and Local Government (and its previous incarnations as DoE, DETR, and ODPM). Similarly, I have always received the full backing of the Board and have to record my appreciation for their input to the development of LEASE, particularly to Ron Armstrong and David Marcus, the ‘founding fathers’ of LEASE, who campaigned for its original funding and establishment. It has been immensely rewarding developing and maintaining contacts with outside organisations with different but interlocking objectives. Our close working relationship with the Association of Residential Managing Agents (ARMA) and the Association of Retirement Housing Managers (ARHM) has been particularly productive, resulting in a number of joint publications, training and other initiatives; there is little doubt that these two organisations have contributed substantially to the overall improvement of management standards in the leasehold sector. I am indebted to David Hewett and John Mills for their consistent support, encouragement and advice over the years. We have been fortunate in the quality of staff LEASE has been able to attract and the organisation could not have
Chief Executive’s report
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3. Chief Executive’s report
Chief Executive’s report
achieved what it has without their dedication, patience and commitment to the ongoing principal of LEASE, to empower the client to deal with their problems. I must, of course, record my particular debt to my deputy, Tony Essien, who joined LEASE in its first months of operation and without whose sound advice, loyalty and support LEASE would not be where it is now. LEASE has come a long way since 1994; in our first Annual Report in 1995 we reported advice output as responding to 83 enquiries per week; on most days we now deal with that before lunch. I leave with regret, but with absolute confidence in LEASE’s future.
Peter Haler Chief Executive
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4.1 LEASE is an ENDPB, entirely funded by grant-in-aid from Government; our principal funder is Communities and Local Government (CLG), with additional contributions from the National Assembly for Wales (NAfW) and Her Majesty’s Court Service (HMCS). We are an independent service providing free legal advice on all aspects of residential leasehold and commonhold in England and Wales. LEASE also has a formal role in the provision of advice to the Government. 4.2 Funding is subject to compliance with terms and conditions and a business plan for the grant-year, agreed between LEASE and CLG and HMCS (see Appendix 1) and to regular monitoring by the funding Departments. This Report follows the requirements of the business plan. 4.3 All LEASE advisers are legal professionals, either solicitors or non-practising barristers, able to offer high-quality advice from a position of specialisation in the subject. LEASE has gained public recognition as a fund of knowledge on residential leasehold and as a resource readily available not only to leaseholders and landlords but also to professionals working in the field, such as solicitors, valuers and managers. 4.4 LEASE publishes a wide range of advisory material, both in print and on its comprehensive website; the website also provides unique access to all decisions and determinations of the Leasehold Valuation Tribunals (LVTs) relating to purchases of the freehold and lease extensions under the Leasehold Reform Act 1967, purchases and lease extensions under the Leasehold Reform Housing and Urban Development Act 1993, the Landlord and Tenant Acts 1985 and 1987 and applications concerning the right to manage under the Commonhold and Leasehold Reform Act 2002.
3. About LEASE
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4. About LEASE
4. About LEASE
The LEASE team
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5.1 Once again LEASE has exceeded both its Business Plan target and the previous year’s output figures. In 2006-7 LEASE responded to 32,981 enquiries; this exceeds the Business Plan target of 32,000 by 3% but is an increase of 12.5% on the 2005-6 figures. It may be noted that the Business Plan target was only set by CLG in late October 2006 when output figures for the year to date were already available. During the year LEASE staff responded to more than 25,500 telephone calls, over 5,000 emails and nearly 1,300 letters. Office interviews remained much as last year at almost 800. Breakdown of method of enquiry is shown at Figure 5. 3% of enquiries were handled by reception staff in sending LEASE publications and we issued 6,588 advice notes in hard copy during the year. All requests for printed leaflets are responded to on the same working day. 96.8% of enquiries dealt with by our Advisers are completed within 15 working days and 98.2% within 25 working days. This latter is an improvement on 2005-6 and a cumulative improvement over the last nine years (see Figures 1-2) and arises from improvements in management technology and staff monitoring. 5.2 Distribution of status of client, type of dwelling and geographical origin of enquiry are shown in Figures 5-8 and are generally consistent with previous years. Subject of enquiry is shown at Figure 3 and this represents a departure from previous years in that, for the first time, enquiries on lease extension represents the highest category, having overtaken enquiries about collective enfranchisement (see Figure 4). It is interesting that clients requiring information on freehold acquisition dropped by 3% on 2005-6 figures, and, at 17% of all enquiries, is substantially less than the 27% figure of only five years ago. This particular change is symptomatic of the changing role of LEASE and can be tracked in comparison of subject distribution since the 1998 Annual Report (ignoring the years prior to LEASE’s transition, post 1996 Housing Act, from a service dealing only with enfranchisement issues into a fully generic advice service). The decline in enquiries on collective enfranchisement seems to demonstrate the ultimate effectiveness of the 1993 Act legislation, particularly in its present amended form; either most of the available freeholds have already been acquired or the procedures are now so simple as to lessen the need for advice. Certainly there has been a very significant change in ownership of freeholds since the Act’s first use in 1994. The LVTs have determined prices of freeholds for 765 properties since the first 1993 Act hearing in August 1994, containing some 7,500 individual leasehold flats, but this must represent only a small proportion of acquisitions agreed by negotiation outside the Act. There are no available statistics on freehold acquisition beyond LVT figures, but there are around 60,000 Resident Management Companies registered at Companies House, and ARMA reports that at least two-thirds of all blocks in management by their members are freeholds in leasehold company ownership. It is satisfying that LEASE has been able to contribute to this change.
5. Demand and response
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5. Demand and response
5. Demand and response
Figure 1. Number of completed enquiries by year
Figure 2. Number of completed enquiries by month
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Figure 3. Subject of enquiry
Figure 4. Number of enquiries on Collective Enfranchisement, Lease Extension and Service Charges
5. Demand and response
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5. Demand and response
Figure 5. Method of enquiry
Figure 6. Status of client
Figure 7. Type of dwelling
Figure 8. Enquiries by geographical area
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Figure 9. Percentage of enquiries taking longer than target times to complete
5. Demand and response
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6. Lease website
6. LEASE website
6.1 Usage of the website continues to grow, emphasising its importance as the primary source of information for both lay and professional clients on leasehold issues and LVT determinations. We have substantially developed our monitoring capabilities of website usage, through revised software, and are now able to filter the statistics to count only visits by a real user, excluding visits by search engines checking content of the site. This has reduced the number of visits recorded by around 30% but provides much more useful and accurate information on real client needs. Notwithstanding the 30% reduction, the number of visits during the year totalled 509,081 representing an average 1,395 visitors per day. Working on the basis of 24 hours, 365 days a year, this represents a visit a minute all year. Taking real figures of visits during weekday working hours this averages a visitor to the site every 32 seconds. 6.2 Comparative statistics for website usage over the past three years is shown at Figure 11 (statistics for 2004-5, 2005-6 include search engine visits.) Each year shows similar patterns of very high demand in March, followed by a downturn in April and it has to be assumed that this relates to the issue of service charge budgets at the March year-end. This is not paralleled in LEASE Adviser output statistics in that there is a finite limit to the capacity of the advice staff but none on the website, which can cope more easily with seasonal demand variations.
Figure 10. Website usage (visits per month)
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leasehold lease LVT right to manage
leasehold ground rent lease advice lease extension
Leasehold Advisory Service enfranchisement leasehold law
These 11 terms represent an increase of four on last year, demonstrating the increasing dominance of the site, the addition of the last term being particularly satisfying. 6.4 During the year we added Leasehold Reform Act 1967 determinations to the schedules of LVT decisions on the website, dating back to 1994. This is the only website source of these documents. The schedule went live in December and immediately proved popular with 10,358 downloads during the last quarter. The introduction of the internal search facilities (see 7.2 below) has substantially improved clients’ access to and use of the site. It currently contains 4,170 LVT determinations, although none from the LVT for Wales who are not presently able to supply them. Recognising that most visitors to the LVT schedules downloaded the text of the determination, as an improvement to customer-service we added in July an option to download in HTML format. The HTML download is quicker and is clearly popular with clients, and by March there were three times as many downloads in HTML as in PDF form. During the year clients downloaded 227,459 LVT determinations from the LEASE website. 6.5 The most accessed document on the website remains the generic guide Living in Leasehold Flats at 35,427 visits, followed by the two advice notes on extending a lease, then the new note on service charges at 26,868 visits. The referral lists of solicitors and surveyors remain popular with 19,729 and 13,194 visits respectively.
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6. LEASE website
6.3 The number of visitors finding LEASE through the Google search engine has increased to around 37% (191,391) and LEASE retains the top position for the following search terms:
7. Management technology
7. Management technology
7.1 Much of LEASE’s efficiency and cost-effectiveness arises from the very high integration of management technology into all operations. Last year’s annual report referred to the substantial changes to the database and our progress toward the objective of a paperless office and these have both improved advisers’ working conditions through removal of paperwork and increased output through efficiency gains. 7.2 During the year we installed a Google Mini, which operates as a secondary search engine within the LEASE website and provides major benefits to both staff and clients. It is presently handling 12,000 searches per month and indexes the website twice a week in order to maintain accurate search facilities. The system allows a much greater detail of search than is achievable through the external search engines, with staff being able to search the database, correspondence files and research software by key word references, for example, all cases previously dealt with by LEASE advisers on a particular issue, and searches of caselaw by single reference etc. It also enables a much greater facility for search within the schedules of LVT determinations on the website, again by single reference, say ‘S20B’ by name or general issue. This has enabled us to dispense with summaries of determinations on 1985/1987 Act cases since clients looking for a specific case, or perhaps generally looking at developments and new cases on a particular issue, can locate what they need more quickly through the dedicated search facility. This has both improved customer service delivery and reduced workloads in drafting the summaries. The Google Mini was installed at a total cost, including specialist support, of £1,535 . 7.3 The generous provision of additional grant-in-aid in the final quarter of the year enabled us to proceed with a major improvement of the previously automated telephone system. It was expedient to renew the system to take advantage of the switchover of the local telephone exchange to Internet Protocol operation; this will result in much cheaper outgoing telephone calls with an estimated saving of 30% in billed costs. The new system improves customer service through better integration with the client database (providing pop-up client details immediately on connection to an adviser) and more efficient queue management. The system provides facilities for call-recording (operational on 30th April 2007) with all recorded calls fully integrated to the individual client casefile on the database. This will allow better interrogation of previous enquiries and provide a resource in case of complaint against the advice given. Because of the routing of calls through the internet, the system is being developed to allow home working by staff. All calls referred to the remote adviser will be through the internal switching operation and clients will not be aware of the transfers; the adviser will, in effect, remotely control their PC terminal in the LEASE office and will therefore have full access to both the client database and the on-line research and case law facilities. It has proved a popular proposal with the staff and will contribute to morale as well as obtaining more efficient use of staff time.
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8.1 Once again this year pressure of work and other priorities at CLG prevented further progress on the review of LEASE publications and the majority remain in LEASE livery only without the CLG logo. It is presently unclear when it will be possible to complete the review sufficiently to meet the target of replacing of Government publications on long-leasehold with LEASE advice notes. It is not anticipated that the works will be completed during 2007-8 and no specific budget provision has been made for the necessary distribution contract. 8.2 Within these limitations it was only possible to produce two new LEASE/CLG advice notes within the year. Service charges and other Issues replaced our earlier note Service Charges, Ground Rent and Forfeiture and is drafted to provide a general guide to leasehold matters. It includes a copy of a substantially redrafted Living in Leasehold Flats to give general background information on statutory rights etc. The publication of Security of Tenure at the End of the Lease completed the replacement of all the content of the CLG publication Residential Long Leaseholds and it is regrettable that this cannot now be discontinued, as originally intended. 8.3 LEASE cannot offer general advice on Home Information Packs (HIPs), but can give specific advice on leasehold elements of the pack such as service charge information, ground rent etc. LEASE was invited, with ARMA and the Royal Institution of Chartered Surveyors (RICS), to work with CLG in the production of a basic guide for leaseholders to the requirements of HIPs, particularly directed to encouraging leaseholders to retain important information. There was early disagreement on both form and content of the leaflet and it was agreed that CLG would proceed with a very simple note, for wide distribution, and that LEASE/ARMA/RICS and ARHM would produce a more substantial guide to be available on all the organisations’ websites and in hard copy from their members. At the end of the year progress was sufficient to ensure availability of the joint publication in time for commencement date for the originally envisaged commencement date for HIPs(and for inclusion in the LEASE Conference delegates’ packs on 31st May). 8.4 The immediate priority for 2007-8 is the major revision of the joint leaflet with ARMA/ARHM Appointing a Managing Agent, to take account of recent legislative changes including the 2002 Act requirements, and also the very wide range of regulatory requirements with which managers must comply. This publication will not require CLG endorsement.
8. Publications
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8. Publications
9. LEASE Mediation Service
9. LEASE Mediation Service
9.1 The pilot mediation service, launched in November 2005, proved successful and the Board gave approval in December 2006 to inclusion of mediation as a core LEASE activity. During the pilot period 83 applications for mediation were received but only 11 progressed to successful mediation hearings. Whilst this represents a very high decay rate it is in common with other mediation services, where cases cannot progress without the express consent of both parties. It was satisfying that in another nine cases the simple opening of communications between the parties by LEASE mediators led to amicable resolution of the problem, without the need for a mediation session. 9.2 With approval to continue, all remaining advisers were trained in mediation to full accreditation standard. The training included two senior members of the LVT, without cost to the Residential Property Tribunal Service (RPTS), as a gesture of assistance toward their own mediation service Since December mediation activity has increased with a further 26 applications in the last quarter.
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10.1 The LEASE Annual Conference continues to provide a valuable forum for leasehold professionals and the 2006 event attracted 310 delegates; we were fortunate in securing a contribution from His Honour Michael Rich QC. 10.2 The ongoing interest in the Lands Tribunal decisions in the Arbib and Sportelli appeals led to approaches to LEASE to run an event dedicated to valuation issues within leasehold reform legislation and we held a Valuers’ Forum on 23rd November 2006. This was deliberately set in a small and intimate venue, the Law Society Council Chamber, to encourage open discussion without need of microphones, and was a sell-out event with all 100 places filled. There seems considerable justification in making this an annual event. LEASE strongly supports and participates in professional discussion of leasehold issues and LEASE Conferences has taken over the administration of the quarterly Southern Valuers’ Forum. This was initiated and run by Richard Inniss of South East Surveys and provides an opportunity for discussion among valuers who generally work outside London in the wider area of the south-east, south and west of England. The forum consists of an informal lunch meeting with discussion led by an eminent practitioner, this year including Stan Gallagher of Falcon Chambers, Christopher Guest of Tanfield Chambers, and Bruce Maunder Taylor. The quarterly southern group meetings complement the proposed Annual Valuers’ Forum but we need to extend the concept to the Midlands and the North. All conference activities are operated by our associated company, LEASE Conferences, and are not subsidised by Government funding. 10.3 As always LEASE has participated in the sector’s principal conferences and made presentations to the ARMA Conference, the ARHM Winter Seminar and the Chartered Institute of Housing (CIH) Home Ownership Conference, as well as a number of commercial events. Tony Essien contributed to the 2006 Jordans’ regional Leasehold Update seminars. During the year we made major efforts in extending LEASE’s professional outreach, improving our working contacts through presentations to branches of the RICS and the Institute of Environmental Health Officers, and to Legal Easel a forum for solicitors. 10.4 LEASE developed a basic training module for social sector leasehold managers for the CIH, in conjunction with Richard Towes of the London Borough of Hammersmith & Fulham, and held a number of regional training days to a total of 150 delegates. LEASE remains very concerned about lack of professional training in the sector and this is an area for further development in 2007-8. 10.5 During the year LEASE provided 57 hours of professional training in leasehold legislation to external organisations.
10. Conferences and outreach
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10. Conferences and outreach
10. Conferences and outreach
Dr Michael Biles, the Housing Ombudsman, and David Marcus
Gerry Fox, ARMA, Deep Sagar and Tony Essein
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Damian Greenish, Peter Haler and Judge Rich
David Hewett, ARMA, and David Marcus
Damian Greenish chairs the conference
Jeff Platt, IRPM, and John Mills, ARHM
10. Conferences and outreach
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11. Social Sector Working Party
11. Social Sector Working Party (SSWP)
11.1 This group includes representatives of lessees and managers in the social sector and is chaired by LEASE. The group meets on a two-monthly basis, with sub-group meetings to consider specific subjects, and is making considerable progress through its agreed work programme;. The target was a formal report to the CLG Minister on overall proposals for change during 2007. Issues are both complex and emotive and LEASE acknowledges the huge learning curve surmounted by the leaseholder representatives during the year. The group is fortunate in the very high level of expertise of the representatives of the landlord sector and discussion have been fruitful. 11.2 In September the SSWP was invited by CLG to contribute to the Minister’s ongoing review of the problems of high service charges in the sector and whether these arose as a direct or indirect consequence of the implementation of the Government’s Decent Homes Standard. The issues was raised specifically in a Parliamentary adjournment debate on 1st November 2006 The SSWP diverted discussion to the issue and submitted its report, Major Works Charges for Social Sector Leaseholders to the Parliamentary Under Secretary, Baroness Andrews, on 26th January 2007. The report fully examines all of the issues and provides 16 recommendations for Government action, some requiring primary legislation but the majority considered capable of introduction through secondary legislation or policy initiatives. The report calls particularly for Government recognition of ownership of the issues and responsibility for improvement; ‘both social sector leaseholders and their landlords require some firm assurance that remedial proposals will be seriously evaluated and considered for implication by Government’. The proposals were submitted in the express intention of furthering dialogue on the problems and the SSWP stands ready to discuss them. The report is available on the LEASE website. 11.3 The Government made an initial response to the report, and other submissions, in a statement to Parliament on 29th March 2007, containing a wide range of proposals including to ‘increase funding for LEASE to enable it to increase its role in the area of alternative dispute resolution and mediation in respect of social sector service charge disputes’. This was followed by an immediate supplementary grant-in-aid payment for the current grant year. Whilst, in our stewardship of the SSWP, we hope for, and expect, further progress from Government in providing long-term solutions to the identified problems, LEASE acknowledges the Minister’s recognition of our mediation role and the input we can make in the sector. LEASE remains grateful for the Minister’s expressed confidence in our organisation and abilities and for the additional funds. A programme for further impact in the social sector is a priority for development in the early part of 2007-8.
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12.1 It remains a matter of disappointment that the Government has not taken a more pro-active approach toward encouraging take-up of commonhold, although we acknowledge the substantial level of work being carried out by Her Majesty’s Court Service (HMCS), the relevant section of the Department for Constitutional Affairs, in identification and resolution of problems with the legislation. However, progress is slow and it is unfortunate that it was not possible to publish the necessary Consultation Paper within the 2006-7 year. 12.2 Both the Commonhold Consultative Committee and the private sector legal advisers to the Oakgrove scheme (the first substantial mixed-use commonhold project) identified a major problem in how shared-ownership (low-cost) housing could be provided within a commonhold, based as it presently is on a joint-ownership lease. The Committee and the Oakgrove team concurred in the solution – creation of a co-ownership trust model – and this has been approved in principal for Oakgrove by the Hyde Housing Association, the provider (with consent of the Housing Corporation) and by the lender, Nationwide. However, it is understood that HMCS may wish to include, as an option in the Consultation Paper, the creation of long leases within a commonhold in order to allow the continuation of the traditional shared-ownership model. LEASE shares the Consultative Committee’s concerns that this would be a major mistake, sufficient to seriously compromise the commonhold concept. The Chairman’s letter to both Ministers on the subject remains unanswered. 12.3 In the event, HMCS was not able to support the proposed Commonhold Conference for developers and principal housing associations and this did not proceed. Proposals are in hand for a privately sponsored event during 2007.
12. Commonhold
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12. Commonhold
13. The future 14. CEO’s responsibilities
13. The future
13.1 LEASE remains committed to the provision of a high quality legal advisory service, free to its users. We remain obliged to our three funding agencies, CLG, NAfW and HMCS for their continuing support.
14. Statement of Chief Executive’s responsibilities
14.1 The Chief Executive is responsible for the day-to-day governance and running of LEASE and for carrying out the role and requirements of Accounting Officer and Consolidation Officer as set out in paragraphs 32-34 and 37-39 of the Management Statement and Financial Memorandum. 14.2 Additional information on the financial requirements of LEASE can be found at Appendix 3, which sets out the accounts directions to be followed, and Schedules 1 and 2 which set out various issues that must be covered in the accounts produced, and any additional disclosure requirements respectively.
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Living in Leasehold Flats (jointly with ARMA & ARHM) Commonhold Application to the Leasehold Valuation Tribunal Service charges The Right to Manage Collective enfranchisement – Getting Started Valuation for Collective Enfranchisement Lease Extension – Getting Started Valuation for Lease Extension Houses – Qualification and Valuation Participation Agreements Getting Value from your Valuer Appointing a Managing Agent (jointly with ARMA & ARHM) S20 Consultation (jointly with ARMA & ARHM) S20 Consultation for Public Sector Landlords (jointly with ALG) Leasehold Retirement Rights (jointly with AIMS and ARHM) Appointment of a Surveyor/Management Audits Right of First Refusal Security of Tenure when the Lease runs out Home Information Packs for Leaseholders
15. LEASE publications list
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15. LEASE publications list
Operating and financial review, Remuneration report
LEASE: FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2007
Operating and financial review
LEASE is an ENDPB and operates as a company registered at Companies House. LEASE is wholly funded by the Government and has no other income; funding is principally from CLG supplemented by lesser amounts from NAfW and HMCS. Accounting is on actual spend basis; subject to quarterly monitoring by CLG and application for payment of grant-in-aid. LEASE has no loans, investments or contracts, other than minor leasing arrangements and maintenance contracts for office equipment; there are no capital assets other than office and IT equipment. The accounts on the following pages have been prepared in accordance with the Companies Act 1985 and the accounts direction given by the Secretary of State; the auditors appointed by the Board are Hodgson Hickie.
Remuneration report
The Board members and Chief Executive (who is not a member of the Board) are listed on page 2. The Board meets on a quarterly basis with the supervising officer at CLG attending as an observer and to comment on Departmental issues and requirements; the Audit Committee, comprising all members of the Board, meets on the same cycle. The Board is governed by the Code of Conduct agreed with the principal funding Department. Under NDPB operational arrangements Board members appointed by the Minister are able to claim remuneration to a level set by CLG. During 2005-6 only the new Chairman was in a position to claim, with effect from 1st January 2007; total remuneration paid (not including travelling expenses) was £533. The Chief Executive’s salary for 2006-7 was £76,788 inclusive of National Insurance, plus employer’s pension contribution of £6,917, totalling £83,705. At year-end there was a total of 18 staff in post (full complement) and remuneration, including National Insurance and employer’s pension contribution at 10% and 11% respectively of gross salary, was in the following bands (excluding Chief Executive): £20,000-£30,000 £30,000-£40,000 £40,000-£50,000 £50,000-£60,000 2 staff 2 staff 12 staff 1 staff
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As Accounting Officer, I have responsibility for maintaining a system of internal control risk management to support the aims and objectives set by the Board and to safeguard the public funds and assets held by LEASE. Systems of control in place relate to expenditure and financial viability and third party liabilities. Almost 80% of LEASE’s expenditure is salaries; the remaining expenditure is sufficiently small that every transaction is personally authorised by the Accounting Officer; all transactions for a sum exceeding £1,000.00 require additional authorisation by the Chairman or specified Board Member. There is no delegation of authority for expenditure. The annual grant-in-aid is paid quarterly, in advance. Quarterly expenditure is scrutinised by the Audit Committee and, separately, by CLG as the basis for the application for the payment of grant in respect of the following quarter. The accounts are audited annually in accordance with company legislation and approved by the Board. Grant-in-aid is approved in principle on a three-year basis, subject to separate application and approval for each year. Externally liability is limited to potential action by clients of LEASE in terms of damages alleged to have been accrued as a direct result of defective advice provided. The company maintains professional indemnity insurance cover to a maximum for any individual claim of £500,000. There is a client complaint policy and procedure in place, accessible on the LEASE website, although no client has yet activated it. The systems of internal control are designed to manage rather than eliminate the risk of failure and can, therefore, only provide reasonable and not absolute assurance of effectiveness.
Peter Haler Accounting Officer
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Statement on internal control
Statement on internal control
Company information
Company information for the year ended 31st March 2007
Directors: D Sagar J Ellis R Levene D Marcus T Moross R Malvern P Haler 31 Worship Street London EC2A 2DX 3296985 (England and Wales) Hodgson Hickie Registered Auditors Chartered Accountants 4 Dovedale Studios 465 Battersea Park Road London SW11 4LR
Secretary: Registered office:
Registered number: Auditors:
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The directors present their report with the financial statements of the company for the year ended 31 March 2007. Principal activity The principal activity of the company in the year under review was that of the provision of advice to the public on residential leasehold issues. Directors The directors during the year under review were: D Sagar (appointed 1.1.07) J Ellis R Levene D Marcus T Moross R Malvern Statement of Directors’ responsibilities The directors are responsible for preparing the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the Directors are required to select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Report of the Directors
Report of the Directors for the year ended 31 March 2007
Report of the Directors
Statement as to the disclosure of information to auditors As far as the directors are aware, there is no relevant audit information (as defined by Section 234ZA of the Companies Act 1985) of which the company’s auditors are unaware, and each Director has taken all the steps that he or she ought to have taken as a Director in order to make himself or herself aware of any relevant audit information and to establish that the company’s auditors are aware of that information. Auditors The auditors, Hodgson Hickie, will be proposed for re-appointment in accordance with Section 385 of the Companies Act 1985. The Leasehold Advisory Service Report of the Directors for the Year Ended 31 March 2007 This report has been prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies. On behalf of the Board
P Haler Secretary
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We have audited the financial statements of The Leasehold Advisory Service for the year ended 31 March 2007 on pages 6-11. These financial statements have been prepared in accordance with the accounting policies set out therein and the requirements of the Financial Reporting Standard for Smaller Entities (effective January 2005). This report is made solely to the company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of directors and auditors The directors’ responsibilities for preparing the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out on page two. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985. We also report to you whether in our opinion the information given in the Report of the Directors is consistent with the financial statements. In addition, we report to you if, in our opinion, the company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors’ remuneration and other transactions is not disclosed. We read the Report of the Directors and consider the implications for our report if we become aware of any apparent misstatements within it. Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
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Report of the independent auditors
Report of the Independent Auditors to the Members of The Leasehold Advisory Service
Report of the independent auditors
Opinion In our opinion: the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities, of the state of the company’s affairs as at 31 March 2007 and of its profit for the year then ended; the financial statements have been properly prepared in accordance with the Companies Act 1985; and the information given in the Report of the Directors is consistent with the financial statements.
Hodgson Hickie, Registered Auditors, Chartered Accountants 4 Dovedale Studios 465 Battersea Park Road London SW11 4LR
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Notes Turnover Administrative expenses Operating profit (loss) on ordinary activities before taxation Tax on profit/(loss) on ordinary activities 4 2
31.3.07 £ 1,161,560 (1,061,645) 99,915
31.3.06 £ 1,005,600 (1,100,277) (94,677)
5
– 99,915
– (94,677)
Profit (loss) for the financial year after taxation
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Profit and loss account
Profit and loss account for the year ended 31 March 2007
Bablance sheet
Balance sheet for the year ended 31 March 2007
Notes Fixed assets Tangible assets Investments Current assets Debtors Cash at bank 6 7 31.3.07 £ 12,008 1 12,009 86,758 92,254 179,012 Creditors Amounts falling due within one year Net current assets Total assets less current liabilities Reserves Profit and loss account 9 (26,512) 152,500 164,509 31.3.06 £ 34,587 1 34,588 24,746 37,467 62,213 (32,207) 30,006 64,594
8
10
164,509 164,509
64,594 64,594
These financial statements have been prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective January 2005). The financial statements were approved by the Board of Directors on July 10th 2007 and were signed on its behalf by:
D Sagar, Chairman
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1.
ACCOUNTING POLICIES Basis of preparing the financial statements The company is reliant on a government grant, which is allocated on an annual basis only. For the coming year funding has been received from the Department of Communities and Local Government. Accounting convention The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2005). The accounts have not been modified to account for the revaluation of tangible fixed assets, as there would be no material difference to the reported profits or between the revalued costs and the historic costs. Turnover Turnover represents grant income from the Department of Communities and Local Government, The Department of Constitutional Affairs and The Welsh Office. The grant from The Department of Communities and Local Government of £1,135,000 has been received in full and was credited in total in the Profit & Loss Account. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Fixtures and fittings: 33% on cost Computer equipment: 33% on cost
2.
TURNOVER The turnover and profit (2006 – loss) before taxation are attributable to the one principal activity of the company. STAFF COSTS 31.3.07 £ Wages and salaries 731,461 31.3.06 £ 748,523
3.
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Notes to the Financial Statements
Notes to the financial statements for the year ended 31 March 2007
Notes to the Financial Statements
Notes to the Financial Statements for the year ended 31 March 2007 (ctd)
The average monthly number of employees during the year was as follows: 31.3.07 Accounting Officer 1 Support Staff 18 19 Included in staff costs are pensions contributions of £60,456 (2006: £54,764). 4. OPERATING PROFIT The operating profit (2006 – operating loss) is stated after charging: 31.3.07 £ Depreciation – owned assets 22,579 Auditors’ remuneration 2,800 Directors’ emoluments 5. 533 31.3.06 1 17 18
31.3.06 £ 22,807 2,500 –
TAXATION Analysis of the tax charge No liability to UK corporation tax arose on ordinary activities for the year ended 31 March 2007 nor for the year ended 31 March 2006. TANGIBLE FIXED ASSETS Plant and machinery etc £ Cost At 1 April 2006 and 31 March 2007 Depreciation At 1 April 2006 Charge for year
6.
68,421
33,834 22,579
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At 31 March 2007 Net book value At 31 March 2007 At 31 March 2006 The amounts shown are at historical cost less depreciation. They have not been modified to their current value, as there would be no material difference to the reported profits or between the revalued costs and the historic costs. 7. FIXED ASSET INVESTMENTS
56,413
12,008 34,587
Unlisted investments £ Cost At 1 April 2006 and 31 March 2007 Net book value At 31 March 2007 At 31 March 2006
1
1 1
The company’s investments at the balance sheet date in the share capital of companies include the following: Lease Conferences Limited Nature of business: Conference & Education facilities Class of shares: Ordinary % holding 100.00
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Notes to the Financial Statements
Notes to the Financial Statements for the year ended 31 March 2006 (ctd)
Notes to the Financial Statements
Notes to the Financial Statements for the year ended 31 March 2007 (ctd)
8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.07 £ Department of Constitutional Affairs – Department of Communities and Local Government 50,000 Prepayments and accrued income 36,758 86,758 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Accrued expenses 10. RESERVES Profit and loss account £ 64,594 99,915 164,509 31.3.06 £ 18,000 – 6,746 24,746
31.3.07 £ 26,512
31.3.06 £ 32,207
At 1 April 2006 Profit for the year At 31 March 2007 11.
RELATED PARTY DISCLOSURES Grants of £1,135,000 were received during the year from the Department of Communities and Local Government. That department is the sponsor department for the company. CONSTITUTION The company is limited by guarantee not having share capital. Each member of the Association undertakes to contribute an amount, not exceeding £1 on winding up.
12.
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31.3.07 Income Local Government National Assembly for Wales Department of Constitutional Affairs 1,135,000 16,560 10,000 1,161,560 Expenditure Staff costs Rents, Rates, Heat & Light Post, Telephone, Stationery Travel & Subsistence Printing Other expenditure New premises costs Auditors’ remuneration Depreciation Fixtures and fittings Computer equipment 731,461 158,914 22,130 4,745 23,952 95,064 – 2,800 748,523 131,752 26,175 3,086 24,404 59,210 81,820 2,500 960,000 9,600 36,000
31.3.06
1,005,600
13,852 8,727 1,061,645 99,915 (4,009) 103,924) 4,009 99,915
13,992 8,815 1,100,277 (94,677) (3,918) (98,595) 3,918 (94,677)
Notional cost of capital SURPLUS FOR YEAR (2006 – DEFICIT) Notional cost of capital reversed EXCESS OF INCOME OVER EXPENDITURE 2006 – EXPENDITURE OVER INCOME
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Income and expenditure account
Income and expenditure account for the year ended 31 March 2007
Appendix 1
Appendix 1: Agreed Business Plan 2006-7
Area of work
(a) Provision of advice on residential leasehold law (CLG) (a)
Objectives
To provide comprehensive, objective and impartial advice to tenants, landlords, professional advisers, professional bodies and others on all aspects of residential leasehold law in England and Wales. To aim to respond to 32,000 enquiries in 2006/07. To aim to respond to 95% of requests for guidance leaflets within 3 working days. To aim to respond to 85% of enquiries requiring specialist advice within 15 working days. To aim to respond to 100% of enquiries requiring specialist advice within 25 working days.
1
(a)
Responding to leasehold enquiries
(a) (b)
(b) Target times for responding
2
(a)
Efficiency targets
(a)
3
Publications and website (a) Residential leasehold (CLG) (b) (b) Website (a)
To further improve response times for enquiries through IT and organisational means, having procedures in place by September 2006. Produce joint LEASE/CLG guidance publications on residential leasehold (in conjunction with CLG). Maintain a comprehensive website with access to all LEASE publications and reports, and all LVT decisions and determinations, aiming to have LVT decisions on the website within 2 months of receipt. Provide monitoring information and statistics to CLG on a quarterly basis in the form agreed. Complete NDBP returns for CLG. Produce the LEASE Annual Report for 2006/2007 in draft by 30 May 2007, and final report by 15 July 2007. Complete a draft updated Corporate Plan by March 2007. Provide reports, discussion papers and responses to Government consultations as appropriate.
4
(a)
Statistics and monitoring information
(a)
(b) Annual Report (c) Corpotrate Plan (b)
(d) Related reports and papers
5
(c) (d)
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Area of work
Liaison and advice with Government and others (a) Advising officials and Ministers of CLG (a) (b) (c)
Objectives
Continue to advise CLG officials and Ministers on residential leasehold issues. Liaise with CLG and WAG as appropriate on NDBP issues. Continue the operation and servicing of the Social Sector Working Party and produce a report and recommendations to the Minister. Continue and further develop working relations with RPTS (including User Groups) and Housing Ombudsman (including Stakeholder Forums). Develop a strategy for wider communications to promote awareness of LEASE for implementation in 2006/07. Devise and effect awareness-raising, training and education in leasehold legislation for professionals and others (as necessary). Arrange an annual conference and seminars (as necessary) on residential leasehold legislation. Continue to develop working relations with leaseholder organisations, the professions and trade bodies with an interest in leasehold. To participate in public speaking engagements/ seminars to promote a wider understanding of leaseholder rights and obligations, and Landlord & Tenant law in general. Continue to work with ARMA/ARHM/CIH and CLG towards improving professional standards of management in leasehold property. Run the pilot Mediation Service for resolution of landlord and tenant disputes; at the conclusion of the pilot period to review the operation and future of the service.
(b) ENDPB requirements (c) Working parties and other groups
6
(d) Communication
(d)
(a)
Training and awareness in residential leasehold issues
(a)
7
(b)
(a)
Working with leasehold organisations, professionals and trade bodies
(a)
8
(b) Seminars, speaking engagements and promoting wider understanding of leaseholder rights (Landlord & Tenant Law) (c) Work on improving professional standards of leasehold management
(b)
(c)
(a)
Mediation status
(a)
9
(b)
Appendix 1
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Appendix 2
Appendix 2: Accounts direction given by the Secretary of State
1. The financial statements of The Leasehold Advisory Service (hereafter in this accounts direction referred to as ‘the Company’) shall give a true and fair view of the profit and loss and the cash flows for the accounting year and the state of affairs at the year end. Subject to this requirement, the financial statements shall be prepared in accordance with: (a) the accounting and disclosure requirements of the Companies Act 1985; (b) United Kingdom Financial Reporting Standards and Statements of Standard Accounting Practice; (c) any guidance that the Treasury may issue from time to time in respect of the annual accounts of non-departmental public bodies; (d) any other specific disclosure requirements of the Secretary of State; insofar as these requirements are appropriate to the Company and are in force for the year for which the financial statements are prepared, and except where agreed otherwise with the Secretary of State or the Treasury, in which case the exception shall be described in the notes to the financial statements. 2. Schedule 1 to this direction gives clarification of the application of the accounting and disclosure requirements of the Companies Act and accounting standards and also gives any exceptions to standard Treasury requirements. Additional disclosure requirements of the Secretary of State and further explanations of Treasury requirements are set out in Schedule 2. This direction shall be reproduced as an appendix to the financial statements.
3.
Schedule 1 1. The Company shall prepare an Operating and Financial Review in line with the recommendations of Reporting Statement Operating and Financial Review, to the extent that such requirements are appropriate to the Company.
*2. The financial statements shall contain a Remuneration Report in line with the requirements of section 234B and Schedule 7A of the Companies Act 1985 and for which purpose, all members of the management board shall be taken to be additional directors. 3. The Company’s profit and loss account shall be in format 1 as set out in Schedule 4 to the Companies Act 1985, adapted where necessary to suit the special nature of the Company’s business. The balance sheet shall be in format 1. In the balance sheet, totals shall be struck at ‘Total assets less total liabilities’. Freehold land and non-leased buildings held as fixed assets shall be stated at existing use value or, for property of a specialised nature, at depreciated replacement cost. Other non-leased fixed assets shall be stated at net current replacement cost. All valuation bases as defined by the Royal Institution of Chartered Surveyors. Stocks and work in progress shall be included in the balance sheet at the lower of estimated replacement cost and estimated net realisable value. Expenditure in the profit and loss shall include a notional cost of capital, at 3.5% of the average net assets during the year. This amount shall be reversed after the line showing the surplus or deficit for the year. The foreword and balance sheet shall be signed and dated on behalf of the board of directors and by the accounting officer.
4.
5. 6. 7.
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Additional disclosure requirements: The following information shall be disclosed in the notes to the financial statements, as a minimum, and in addition to the information required to be disclosed by paragraphs 1 and 2 of this direction. (a) An analysis of grants from: (i) government departments (ii) European Community funds (iii) other sources identified as to each source; (b) For grants from the Department for Communities and Local Government, the following information shall also be shown: (i) the amount that the Company is entitled to receive for the year (ii) the amount received during the year (iii) the amount released to the profit and loss account for the year (iv) the amount used to acquire or improve fixed assets in the year (v) movements on amounts carried forward in the balance sheet and the note should make it possible to reconcile any of the amounts in (i) to (v) above, to each of the other amounts; (c) An analysis of grants included as expenditure in the profit and loss account and a statement of the total value of grant commitments not yet included in the profit and loss account; (d) Details of employees, other than directors, showing: (i) the average number of persons employed during the year, including part-time employees and secondees, analysed between appropriate categories (ii) the total amount of loans to employees (iii) employee costs during the year, showing separately: (1) wages and salaries (2) early retirement costs (3) social security costs (4) contributions to pension schemes (5) payments for unfunded pensions (6) other pension costs. (e) An analysis of liquid resources, as defined by accounting standard FRS1 (revised). (f) In the note on debtors, prepayments and payments on account shall each be identified separately. (g)* Particulars, as required by the accounting standard on related party disclosures, of material transactions during the year and outstanding balances at the year end (other than those arising from a contract of service or of employment with the Company), between the Company and a party that, at any time during the year, was a related party. For this purpose, notwithstanding anything in the accounting standard, the following assumptions shall be made: (i) transactions and balances of £5,000 and below are not material
Appendix 2
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Schedule 2
Appendix 2
(ii) parties related to directors and key managers are as notified to the Company by each individual director or key manager (iii) the following are related parties: (1) subsidiary and associate companies of the Company (2) pensions funds for the benefit of employees of the Company or its subsidiary companies (although there is no requirement to disclose details of contributions to such funds) (3) directors and key managers of the Company (4) members of the close family of directors and key managers (5) companies in which a director or a key manager is a director (6) partnerships and joint ventures in which a director or a key manager is a partner or venturer (7) trusts, friendly societies and industrial and provident societies in which a director or a key manager is a trustee or committee member (8) companies, and subsidiaries of companies, in which a director or a key manager has a controlling interest (9) settlements in which a director or a key manager is a settlor or beneficiary (10) companies, and subsidiaries of companies, in which a member of the close family of a director or of a key manager has a controlling interest (11) partnerships and joint ventures in which a member of the close family of a director or of a key manager is a partner or venturer (12) settlements in which a member of the close family of a director or of a key manager is a settlor or beneficiary (13) the Department for Communities and Local Government, as the sponsor department for the Company. For the purposes of this sub-paragraph: (i) A key manager means a member of the Companys management board. (ii) The close family of an individual is the individual’s spouse, the individual’s relatives and their spouses, and relatives of the individual’s spouse. For the purposes of this definition, ‘spouse’ includes personal partners, and ‘relatives’ means brothers, sisters, ancestors, lineal descendants and adopted children. (iii) A controlling shareholder of a company is an individual (or an individual acting jointly with other persons by agreement) who is entitled to exercise (or control the exercise of) 30% or more of the rights to vote at general meetings of the company, or who is able to control the appointment of directors who are then able to exercise a majority of votes at board meetings of the company. (h) A statement of losses and special payments during the year, being transactions of a type which Parliament cannot be supposed to have contemplated. Disclosure shall be made of the total of losses and special payments if this exceeds £250,000, with separate disclosure and particulars of any individual amounts in excess of £250,000. Disclosure shall also be made of any loss or special payment of £250,000 and below if it is considered material in the context of the Company’s operations. * Note to paragraph 2 of Schedule 1 and paragraph 2(g) of Schedule 2: under the Data Protection Act 1998, individuals need to give their consent for some of the information in these sub-paragraphs to be disclosed. If consent is withheld, this should be stated next to the name of the individual.
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31 Worship Street, London EC2A 2DX Telephone: 0207 374 5380 or local rate on 0845 345 1993 Fax: 0207 374 5373 Email: info@lease-advice.org Website: www.lease-advice.org