01483 890672

Copyright © 2005 - 2019  [The Leasehold Advice Centre]

All rights reserved - 
subject to amendment / updating & without prejudice to changes of legislation not reflected in this site

MISC & FAQ

MISC & FAQ

1.  Landlords / Agents - 

We have acted for a considerable number of clients across the country in relation to Lease Extensions, Right To Manage an Collective Enfranchisement. Below, in no particular order; is a small selection of  Landlords & agents who we have acted against, (i.e. acted on behalf of flat owners). Some of these are very well known owning considerable portfolios of Freehold Ground Rents to other far smaller ones

192 Queensgate Limited 

Abacona Investments Limited Abbotswood Limited

Acecrown Property Developers Limited

Actionleague Limited

Adar International Investments Limited

Alan Mattey

Alexander Wadham-Corn (Development Co.) Limited

Arklodge Limited

Asda Properties Limited

Assethold Limited

Ault Investments Limited

Avenir Property Company Limited 

Baldry Son & Chandler Limited 

Barnstaple Estate Investments Limited 

Bath and North East Somerset Council 

Bernard Construction Limited

BLR - Basicland Registrars

BPT (Bradford Property Trust) Limited

Bracknell Forest Council 

Brinor Investments Limited Broadridge Limited

Bull Construction Limited 

Bullion Properties Limited 

Burney Reality Limited 

Cadogan Estates Limited Camaco Properties Limited

Cambridge Road Investments Limited 

Camden Court Management Limited 

Capital & District Properties Limited 

Cavernlodge Limited

CH Chesterford Limited

CH Chesterford Limited

City and Country Properties Limited 

Cobstar Limited

Contactreal Limited

Cormorant limited

Crown Estate Commissioners

D J J Estates Limited 

Daejan Estates Limited 

Daejan Properties Limited

David Glass & Associates (DGA) 

Daws Investments Limited 

Deftbrent Limited

Denetower Limited 

Dexite Company Limited 

DGA PLC

Distinctfine Limited

Dorrington (Knightsbridge) Properties Limited

Eagerstates Limited

Earl of Plymouth  Estates Limited 

Earnsdale Properties Limited 

Elliott Land Company Limited 

Ennersdale Investments Limited 

Ernle Estates Limited

Escalus Properties Limited

Estate Acquisition & Development Limited

Estates & Management Limited

Fable Estates Limited 

Fairfield Rents Limited 

Finalbrief Limited

Freehold Management (Traders) Limited 

Freehold Portfolios (GR) Limited 

Freehold Securities Limited

G & O Estates Limited

G & O Properties (London) Limited 

G & O Real Estate Limited 

Gatehouse Limited

George Jamieson Limited 

Gracewell Properties Limited 

Grangeward Limited

Grayshott Investments Limited 

Great Dock Properties Limited 

Grosvenor (Mayfair) Estate 

Grosvenor (Mayfair) Estate Grosvenor West End Properties 

Grosvenor West End Properties 

Ground Rents (Regisport) Limited 

Guaranteed Investments Limited

H & D Property Services Limited 

Hamilton King Management Limited 

Haynes (Holding) Company Limited 

Headline Developments Limited 

Highcharm Limited

Highdorn Co Limited 

Hillary Estates Limited 

Hinton Landholdings Ltd

Holding And Management (Solitaire) Limited

Holmwell Properties Limited

 Howard De Walden Estates Limited 

Imberhorne Investments Limited

J J & E L Developments Limited

JH Watson Property Investment Limited 

Jonathan Dewan Developments Limited 

Joyful Investments Limited

Julex Limited

Kentwood House Developments Limited

Kittyco Limited KLJ Limited 

Knighthouse Limited

Kolup Investments Limited 

Laing Homes Limited

Lakeside Developments Limited 

Lakeside Developments Limited 

Lambournes Surveyors Limited 

Landshea Estates Limited

LCP Securities Limited

Leanne Mattey

Mattey Group

Leslie Fink Limited

Leyton Properties Limited

Liberty Property Management Limited 

Liberty Property Management Limited 

Linkproud Limited

London & Provincial Consolidated Investments

Long Term Reversions Limited 

Long Term reversions (Torquay) Limited

M & JS Properties Limited 

Marshlease Limited

Maxiwood Limited

Mayfair Leasehold Properties Limited 

Metropolitan  Properties Co (FGC) Limited 

Metropolitan Realizations Limited 

Michael Howard Lawson 

Milesahead Properties Limited 

Millgate Developments Limited 

Mint Property Management Limited 

Montague Alan Limited

Narvo Impex Limited

Nelson Property Investments Limited

Netpex Services Limited

Newservice Limited

North Central Developments Limited 

Northumberland & Durham Property Trust Li OM Properties

OM Properties Limited 

Omonville Properties Limited 

Orchidbase Limited

Ozzygate Limited

Pemco Investment Trust Limited 

Pemco Investment Trust Limited 

Peverel OM Limited

Peveril OM Limited 

Phyllis Trading Limited 

Pier Management 

Placidi Limited 

Plainworth Limited

Primeview Developments Limited 

Priority Estate Management  Limited

Proudale Limited

Quadrant Property Management Ltd

Quadron Investments Limited 

Queens Lodge Limited 

Queensville Properties Limited 

R.A. Creamer & Son Limited 

Raj Properties Limited

Raleigh Close Investments Limited 

Rayners Property Management 

Redrow Homes Limited

Regis Group (Barclays) Freeholds Limited

Regisport Limited 

Regisport PLC Reston Limited

RMG - Residental Management Group Limited

Rosekey Limited

Rosemead Nominees Limited 

Safeland (Ground Rents) Limited 

Sagitus Limited

Sanctuary Housing Association 

Sarum Properties Limited 

Sarum Trustees Limited

Saxony Development Company Corp

Shenstone Properties Limited

Shortlift Limited

Sidewalk Properties Limited

Simmons Gainsford Services Limited

Sinclair Gardens Investments (Kensington) Li

SMG Management Co Limited

Solitaire Property Management Limited 

Southern Land Securities Limited 

Stadium Housing Association Limited 

Staimon Securities Limited

Stefos Estates Limited 

Stonefield Estates Limited 

Swanlane Estates Limited 

Target Performance Limited

Taylor Woodrow Holdings Limited

Tepador Properties Limited

Tesco Blue (Nominee 1) Limited 

Tesco Blue (Nominee 2) Limited 

Tesco Property Holdings Limited

The Baron Homes Corporation Limited

The Commissioners for the Exhibition of 1851

The Common Estate Limited

The Halliard Property Co Limited

The Hamiltons No 1 Residents Company Limited 

The Hampstead Garden Suburb Trust Limited 

The London Diocesan Fund

Topland Investments 

Tulsense Limited

Mayfair Limited 

Triplerose Limited

Tulsesense Limited

Tyrrel Investments Inc

Urbanpoint Property Management Limited

V & J Investments  Limited

Vectis Property Company Limited 

Vereker Property Company Limited 

Vermont Street Flats Management Limited 

Voteglen Limited

W.J. Martson & Son Limited

Waterglen Limited 

Waverley Realty Limited 

Wellcastle Limited 

Wenghold Limited

Westleigh Properties Limited 

Wingdawn Property Company Limited 

Wynbay Limited

Zambra Investments Limited

.

2.  Definitions In Brief

Absent Landlord

A Landlord that cannot be found.  Where a Landlord is 'absent' then an application can be made to the First-tier Tribunal for an order enabling the RTM company to acquire the right

Acquisition Date

Date when the RTM Company takes over the responsibility for managing the Block of Flats

Block / Block of Flats

Block of flats that is considering forming an RTM Company to make a claim for RTM. The Block must satisfy certain criteria in so far as that:   it is self-contained (or if part of another building, be capable of being redeveloped independently);  it must contain at least two flats;  at least two-thirds of the flats must be let to "qualifying tenants"; and  part of it can be used for Commercial purposes but the Non-Residential part must not exceed 25% of the total floor area

Building Insurers

Insurer of the Building

Buildings Insurance

The insurance policy that covers the Building

Claim Dispute Reasons

The only possible reasons that a Landlord can give in the Counter Claim Notice for disputing the Claim  are  whether (a) the Block does not qualify (b) the RTM Company does not comply with the legislative requirements; and (c) the Members do not represent at least half of the Qualifying Flat Owners in the Block

Claim Notice - Section 79

A document sent to the Landlord by the RTM Company notifying the Landlord that the RTM Company is exercising the right to acquire the Right to Manage the Block

Commercial Element(s)

Part or parts of a Block that are used for non residential purposes 

Commonhold and Leasehold Reform Act 2002

Act of Parliament which allows Flat Owners to take over the responsibility for the management of their Block

 

Company Law

The aspect of law that governs the way that companies can operate

Company Secretary

A person who is elected and responsible for the administration and compliance of the RTM Company with Company Law.  The Company Secretary can also be a Director

 

Counter Notice - Section 84

A notice sent by the Landlord to the RTM Company that either admits that the RTM company is entitled to acquire the RTM or alleges that the RTM Company is not entitled to acquire the Right to Manage

Determination Date

A date that is set at least one month after the Claim Notice (S79) is issued by which time the landlord must serve a Counter-Claim or accept that the RTM will be exercised on the Acquisition Date

Director

A person who is elected and  responsible for the running of the RTM Company. A Director  is legally required to comply with company and health and safety law

Duty to Provide Information Notice - Section 93

A notice sent by the RTM Company to the Landlord requesting information that will be required for managing the Block. This can be sent at any time after the Claim Notice has been issued

Financial Obligations

Requirements to pay certain amounts on behalf of the Block such as for insurance, repairs, maintenance etc

 

Flat Owner

The person who owns the lease of the flat

 

Freehold

Ownership of the Block subject to any Leases granted

 

Head Lessee

Ownership of the Head Lease from which the sub leases have been granted

 

Landlord

The Head Lessor or freeholder of a block

 

Lease

The contract / agreement between a Lessor and lessee that sets out each parties rights and obligations

 

Leasehold Property

A property upon which there is a Lease granted

 

Leasehold Reform, Housing and Urban Development Act 1993

Act of Parliament which provides for certain Lessees (who meet the necessary qualification criteria) to acquire a lease extension

 

Leasehold Valuation Tribunal

The previous name for the government body that determines disputes regarding matters concerning Leases, service charge disputes and the management of blocks of flats which has now been changed to The First-tier Property Chamber Tribunal

 

Lessee

Someone who owns a lease on a property

 

Lessor

The person who owns the Freehold of the building

 

Long Lease

A Lease that was originally granted for more than 21 years at a premium and a low annual rent

 

Memorandum and Articles of Association

Documents that control and determine the running of the RTM Company

 

Non-Residential

Premises (or part thereof) that are not used for residential purposes

 

Notice of Invitation to Participate - Section 78

A notice sent by the RTM Company to all Qualifying Flat Owners in the Block inviting them to participate in the RTM Company.  This can be sent at anytime after the RTM Company has been formed but it must be sent prior to the issue of the Claim Notice

 

Officers

The Directors and Company Secretary of the RTM Company

 

Qualifying Flat Owner

A Lessee (i.e. someone who owns the Lease on the flat)  who has a Long Lease i.e. one that was originally granted for more than 21 years at a premium and a low annual rent

 

Qualifying Tenant

A Lessee (i.e. someone who owns the Lease on the flat)  who has a Long Lease i.e. one that was originally granted for more than 21 years at a premium and a low annual rent

 

Qualifying Leaseholder

A Lessee (i.e. someone who owns the Lease on the flat)  who has a Long Lease i.e. one that was originally granted for more than 21 years at a premium and a low annual rent

 

Reserve Fund

Money collected from Flat Owners over a period of time to provide for funds needed for future Major Works

 

Right to Information Notice - Section 82

A notice sent by the RTM Company to the Landlord requesting information.  This can be sent anytime after the RTM Company has been formed and before the Claim Notice is issued

 

Right to Manage

The right for Flat Owners, via an RTM Company, to take over the management functions of the block of flats from the Landlord or the Landlord's appointed Manager

 

RTM Company

A specific type of company (which is entirely different to a Limited Company)  registered with Companies House that is limited by guarantee, to take over the management of the Block

 

Self-Contained

A Building or Block that is structurally detached (or if part of another building, be capable of being redeveloped independently)

Service Charge

Payments by owners of flats to the Landlord / Managing Agent relative to the services provided to the Block, which would or may include items relative to insurance,  maintenance /  repairs,  lighting and cleaning of the common parts and could also include such matters as communal central heating, porterage, lifts,  etc
 

 

3.  Frequently Asked Questions

We have been offered the Freehold for our block - what should we do?

A lot no doubt might depend upon the present length of the leases, whether the amount proposed is 'reasonable' or not & how many of the flats are interested in the proposal. A Landlord could be intending to dispose of the Freehold by Auction or by Private Treaty & in the case of the latter should serve what is known as Section 5 Notices. Usually, where a Landlord serves a Section 5 Notice it is because the Landlord intends to sell at a figure no less than that stated in the Notice. By law they cannot legally dispose of the Freehold for a sum less than they have stated. Usually, if the Offer is not accepted the Landlord will endeavour to sell elsewhere at any figure equal to or greater than the sum proposed. They have 12 months in which to do this & are not obliged to offer the Freehold again to you assuming they were to sell within the time period for a sum no less than that stated. If they are unable to sell for the figure proposed but find a buyer who is prepared to proceed at a lower figure then they would, as such, be obliged to re-offer the Freehold again to you by means of another Section 5 Notice all over again, stating the lower figure. There is a set procedure under the legislation to accept such a proposal but one should bear in mind it is the majority who need to accept so, for example, if there are 10 flats in a building 6 would need to accept the proposal, unlike the position of compelling the sale of the Freehold under S13 where only 50% of the leaseholders are required to participate subject to the other qualification requirements being met. Furthermore, where leaseholders are accepting a proposal following Section 5 the ones who are participating will have to pay the total purchase price between them so the less that participate the more expensive, 'per flat' it can be.

 

Why should I extend my lease? 

A lease is a right to use the property for a specific duration. As a lease gets shorter the value of the lease decreases, in comparison with other similar properties with long leases. It also becomes more expensive to extend the lease. It is not uncommon for it to be difficult to sell a property with a short lease because mortgage lenders may be reluctant to lend money on such properties and prospective purchasers may be reluctant to buy knowing this can affect the saleability and value of the property. Other issues could relate to high levels of ground rent or possibly 'undesirable' ground rent review clauses. There are a small proportion of leases where they have such review clauses which can significantly affect the value / saleability of the property. One of the benefits in extending a lease under the legislation is that not only does it give you a much longer term it also reduces the ground rent for the entire period to a ‘peppercorn’ (i.e. basically nil) & this is for the entire term not just the extended period. Furthermore it would do away with any further rent review clauses in the lease although given the short lease and the high level of ground rent / review clauses it is likely to be more expensive to extend than a longer lease with a lower ground rent.

I want to extend my lease. Other than the price paid to the freeholder, are there any other costs? 

You will be responsible for the freeholder's "reasonable costs", which includes the professional fees such as  the freeholder's valuation, if he requires one and his legal costs of drawing up the new lease and the cost of his solicitor dealing with the Notice of Claim, Counter Notice etc. You do not usually have to pay a Landlord's legal costs of going to the First-tier Tribunal but will have to pay your own.

What will it cost to apply to the FTT? 

There are currently no fees payable to the Tribunal for an application which relates to the enfranchisement of flats and lease extensions.

Where can I get a copy of my lease? 

Usually it can be obtained from your mortgage lender or the Land Registry will usually hold a copy who will provide a copy, where available, subject to a fee.

What should a summary of a service charge contain?

  • how the costs relate to the service charge demand, or if they will be included in a later demand;

  • any items for which the landlord did not receive a demand for payment during the accounting period;

  • any items for which a demand was received and for which no payment was made during the accounting period;

  • any items for which a demand was received and for which payment was made during the accounting period; and

  • whether any of the costs relate to works for which an improvement grant has been or is to be paid.

I have received a service charge demand for works undertaken 2 years ago. I think this is unfair. What can I do? 

A landlord must demand a service charge from a leaseholder within 18 months of a cost being incurred, unless the landlord has written to inform you within 18 months of a cost being incurred that s/he has incurred a cost and s/he will seek to recover such costs through the service charge.

My landlord has completed the work without seeking my views beforehand. Will I have to pay? 

If your landlord failed to consult you in a situation where consultation was required your liability to pay towards the costs of the works will be limited regardless of the amount the landlord has sought to charge you. The landlord is not required to consult with you in all circumstances. Where the works required are urgent, the landlord can seek 'dispensation' from the Leasehold Valuation Tribunal (FTT) to avoid using the consultation process

We have taken over RTM. But the freeholder insists that it continues to insure the building. Is this correct?  

No. Your RTM limited company has taken over the management functions of the freeholder (and any management company that might have been in place). Management includes the insurance of the building. But it is specifically provided that it is entitled to arrange its own insurance in addition if it wishes - but if it chooses to do so, it will do so at its own expense.

What should the written summary of the insurance policy contain?  

[1]   the sum for which the property is insured

[2]   the name of the insurer

[3]   the risks covered in the policy

 

The freehold has been sold without being offered to us.  There may be a Right of First Refusal in which case there may be rights of enforcement against new purchase. It may be possible to serve a notice on the new freeholder to compel sale of the freehold.

 

We have asked for information from the freeholder but they simply won't reply. What can be done about it?  

If the freeholder/management company declines to provide certain information it is required to give in response to a request under S82 or S93, one can serve on the Landlord what is called a Default Notice which gives it a further 14 days within which to comply failing which you could then bring an Application for compliance to your local County Court under S107. The Court might make a Costs Order against the freeholder as well as granting the Order requested.