Example notice of proposals to enter into a long-term agreement

To all leaseholders of (insert name of the premises) and the (insert name of recognised tenants’ association*).

*Delete if not applicable

1. This notice is given following the notice of intention to enter into a long-term agreement issued on (insert date of notice of intention). The consultation period in respect of the notice of intention ended on (insert relevant date).
2. We have now prepared (insert number, at least two) proposals in respect of the (goods) (services) (works) to be provided under the agreement based on the estimates received, and (a copy of each proposal accompanies this notice) or (copies of the proposals may be inspected at (insert place and hours for inspection) (see Notes 1 and 2 below).
3. We invite you to make written observations in relation to the proposals by sending them to (address of landlord or manager). Observations must be made within the consultation period of 30 days from the date of receipt of this notice, and the consultation period will end on (insert date of not less than 30 days from the date that the notice is given to the recipient) (see Note 3 below).
4. We did not receive within the consultation period any written observations in relation to the notice of intention given on: (insert date of notice of proposals) (see Note 4 below)
   or
5. The written observations in relation to the notice of intention received during the consultation period may be summarised as follows: (insert summary of observations). Our response to the observations is: (state response) (see Note 4 below)

Signed:

(Signature of person giving the notice. Where an agent signs, insert also ‘duly authorised agent of (name of landlord or manager)’.)

Address: (Give the address to which future communications relating to the subject matter of the notice should be sent.)

Date:

1. The landlord is required to prepare at least two proposals in respect of the matters described in a notice of intention. These need not relate to the two lowest estimates. At least one of the proposals must propose that goods or services are provided, or works are carried out, by a person wholly unconnected with the landlord. Where an estimate has been obtained from a person nominated by leaseholders, the landlord must prepare a proposal based on that estimate. Each proposal must contain a statement of the intended duration of the agreement and the party’s name and address must be included on the proposal, as well as any connection between the party and the landlord (apart from the proposed agreement). Each proposal should state the estimated contribution relevant to the tenant’s unit of occupation. If it is not reasonably practical to provide that information, the landlord may provide the overall cost estimated under the agreement or a unit cost or a daily or hourly rate. Where the agreement comprises of or includes the proposed appointment of an agent to carry out the landlord’s management obligations to the tenants each proposal shall contain a statement saying whether or not the person is a member of a professional body or trade association (including the name of the body or association), and whether they do/do not subscribe to any code of practice or voluntary accreditation scheme relevant to the functions of managing agents. Each proposal shall also contain details of the provisions (if any) to vary the amount specified in, or to be determined under the proposed agreement as well as the duration of the agreement.
2. Where a notice specifies a place and hours for inspection:
   1. the place and hours so specified must be reasonable; and
   2. copies of the proposals must be available for inspection, free of charge, at that place and during those hours. If facilities to enable copies to be taken are not made available at the times at which the proposals may be inspected, the landlord shall provide to any leaseholder, on request and free of charge, a copy of the proposals.
3. The landlord has a duty to have regard to written observations made within the consultation period by any leaseholder or recognised tenants’ association. ‘Recognised tenants’ association’ is defined by Section 29 of the 1985 Act.
4. Where a landlord has received written observations within a consultation period in relation to a notice of intention to enter into a long-term agreement, he is required to summarise the observations and respond to them.