If you’re a long-leaseholder, it is important to understand what your lease terms mean. This article highlights the top 7 things you need to find when you read your lease – and why those things...
The starting point here is RTBL. Read The Bl**dy Lease ... to clarify where the flat stops and the rest of the building begins. You need to the words which describe the Demised Property.
From what you have said about the Reserved Property (that which is not demised to any flat), the glass in the window frames may be demised ... but the window frames are not demised.
Before you do anything, speak with the freeholder and/or managing agent (not letting agent) and get confirmation in writing of their view/position.... Read More
If RTM is not working for you - you should use Right to Enfranchise and buy the freehold. Then your destiny will be in your hands - and the appurtenant land.
But even where you have RTM, the Landlord of the appurtenant land (via their managing agent) still has to abide by Landlord & Tenant law ... including "reasonable" service charges.
I suggest you query the 400% increase - ascertain the facts - and then apply to the First-tier Tribunal if appropriate.... Read More
There have been many cases where the First-tier Tribunal has considered a reserve fund. Generally, these cases revolve around whether a reserve fund is permitted under the terms of the specific lease. However, sometimes they revolve around what is "reasonable".
Look through the cases here > https://decisions.lease-advice.org... Read More
Well, SCP, my view is that reserve funds and/or sinking funds are always a good idea - provided the lease allows them.
And to your other point - the "benefit" of a sinking fund for lift renewal (for example) is that there is a pile of cash to pay the large bill when it arrives. However, that spot in time is not where the leaseholder benefits from the lift. The leaseholder benefits from the lift every day... in the long run-up to the renewal. So that is what the leaseholder is paying for, in effect.
Think about your car service. The money you pay for that work - is that paying for that day's activity only - or are you paying to repair the damage caused by your use of the car each day leading up to that service?... Read More
He might be regarded as a 'shadow director', if he is doing all the things a director would normally do actions-wise and decisions-wise.
If his day job prevents him from being a director formally - why not invite him to board meetings as a guest - and listen to what he has to say. He may not be able to vote, but you can listen and take his views into account, surely?... Read More
If we look at the recent arrival of the Leasehold Reform (Ground Rent) Act 2022 which took effect on 30th June 2022 ... that arrived on the parliamentary start line about five years earlier. So, if the government actually does what it has promised ... we're looking at an Act taking effect in 2027 or thereabouts. And before then we have a general election ... and who knows how many Housing Ministers, as they don't last long.
The only way to be certain about your ground rent in the future, is to go down the section 42 lease extension route ... pay a chunk of money now ... and peppercorns forever after ... no matter what the government does or doesn't do.... Read More
It seems to me that the question of "reasonableness" applies here. Either the survey now is correct - in which case the works 1o years ago were "unreasonable". OR the works back then were fine and the survey now is unreasonable ... as the intended works would be.
An application to the FTT using Form Leasehold 3 seems appropriate > https://www.gov.uk/government/publications/form-leasehold-3-application-for-a-determination-of-liability-to-pay-and-reasonableness-of-service-charges
The practical problem lies with the freeholder - who no doubt is obliged by the terms of the lease to "repair and maintain" the roof. Recovering the costs is not an automatic and therefore the freeholder may be left out of pocket.... Read More
There are two main ways to deal with this situation - one collectively and one individually.
Collectively - you could group together with fellow leaseholders to buy the freehold, using Right to Enfranchise. That needs "more than 50%" to participate and therefore involves 'herding cats'. Difficult, but ultimately the best answer ... as you can grant yourselves lease extensions as part of the process and/or change the ground rent to zero (a peppercorn).
Individually, you can serve notice on the landlord requiring a statutory lease extension. That provides +90 years to the existing lease term; e.g. 125 > 215 years ... and also changes the ground rent to a peppercorn.
Either route removes the onerous ground rent clauses in your lease and solves the problem you're worried about.... Read More
Ground rent is only due once a legal s166 notice has been sent. Likewise, if the lease allows, the administration charge is only payable once a legally correct demand is sent, which the correct Summary of Rights & Obligations.... Read More
It is always worth checking that the service charge demand and/or ground rent notice is in a legal form, in accordance with the law and regulations. Just because you're being chased for 'a debt' doesn't mean that debt actually exists - and if the documentation sent by the landlord/agent is invalid for whatever reason, the debt doesn't exist.
Leasehold Lesson 6 refers > https://berniewales.co.uk/leasehold-lessons-live/... Read More
From the leaseholder viewpoint (rather than landlord viewpoint) be careful about breaching the terms of the lease. Read it VERY carefully. Quite often there is a clause requiring the leaseholder NOT to bring anything explosive onto the property. Calor gas bottles, etc, would fall into that category.
I suggest you approach the freeholder/landlord and/or their managing agent for advice.... Read More
12:52 PM, 21st December 2022, About 2 years ago
The starting point here is RTBL. Read The Bl**dy Lease ... to clarify where the flat stops and the rest of the building begins. You need to the words which describe the Demised Property.
From what you have said about the Reserved Property (that which is not demised to any flat), the glass in the window frames may be demised ... but the window frames are not demised.
Before you do anything, speak with the freeholder and/or managing agent (not letting agent) and get confirmation in writing of their view/position.... Read More
16:27 PM, 6th December 2022, About 2 years ago
If RTM is not working for you - you should use Right to Enfranchise and buy the freehold. Then your destiny will be in your hands - and the appurtenant land.
But even where you have RTM, the Landlord of the appurtenant land (via their managing agent) still has to abide by Landlord & Tenant law ... including "reasonable" service charges.
I suggest you query the 400% increase - ascertain the facts - and then apply to the First-tier Tribunal if appropriate.... Read More
11:48 AM, 5th December 2022, About 2 years ago
There have been many cases where the First-tier Tribunal has considered a reserve fund. Generally, these cases revolve around whether a reserve fund is permitted under the terms of the specific lease. However, sometimes they revolve around what is "reasonable".
Look through the cases here > https://decisions.lease-advice.org... Read More
9:14 AM, 30th November 2022, About 2 years ago
Reply to the comment left by SCP at 29/11/2022 - 16:59
Play nicely children :-)... Read More
9:10 AM, 30th November 2022, About 2 years ago
Reply to the comment left by SCP at 29/11/2022 - 13:04
Well, SCP, my view is that reserve funds and/or sinking funds are always a good idea - provided the lease allows them.
And to your other point - the "benefit" of a sinking fund for lift renewal (for example) is that there is a pile of cash to pay the large bill when it arrives. However, that spot in time is not where the leaseholder benefits from the lift. The leaseholder benefits from the lift every day... in the long run-up to the renewal. So that is what the leaseholder is paying for, in effect.
Think about your car service. The money you pay for that work - is that paying for that day's activity only - or are you paying to repair the damage caused by your use of the car each day leading up to that service?... Read More
12:11 PM, 25th November 2022, About 2 years ago
In short, no.
He might be regarded as a 'shadow director', if he is doing all the things a director would normally do actions-wise and decisions-wise.
If his day job prevents him from being a director formally - why not invite him to board meetings as a guest - and listen to what he has to say. He may not be able to vote, but you can listen and take his views into account, surely?... Read More
15:20 PM, 4th November 2022, About 2 years ago
Reply to the comment left by Shining Wit at 29/10/2022 - 07:56
True ... and I understand representations are being made to the civil servants in question, in the hope that those holes can be plugged.... Read More
14:30 PM, 26th October 2022, About 2 years ago
#ropa : Regulation of Property Agents petition > https://petition.parliament.uk/petitions/617995... Read More
13:57 PM, 25th October 2022, About 2 years ago
In the penultimate programme, he said the Faculty had rented a house on their behalf.
I wish I had an employer like that.... Read More
14:35 PM, 14th October 2022, About 2 years ago
If we look at the recent arrival of the Leasehold Reform (Ground Rent) Act 2022 which took effect on 30th June 2022 ... that arrived on the parliamentary start line about five years earlier. So, if the government actually does what it has promised ... we're looking at an Act taking effect in 2027 or thereabouts. And before then we have a general election ... and who knows how many Housing Ministers, as they don't last long.
The only way to be certain about your ground rent in the future, is to go down the section 42 lease extension route ... pay a chunk of money now ... and peppercorns forever after ... no matter what the government does or doesn't do.... Read More
16:20 PM, 10th October 2022, About 2 years ago
VAT should not be applicable. The freeholder is trying it on (surprise).... Read More
13:49 PM, 10th October 2022, About 2 years ago
It seems to me that the question of "reasonableness" applies here. Either the survey now is correct - in which case the works 1o years ago were "unreasonable". OR the works back then were fine and the survey now is unreasonable ... as the intended works would be.
An application to the FTT using Form Leasehold 3 seems appropriate > https://www.gov.uk/government/publications/form-leasehold-3-application-for-a-determination-of-liability-to-pay-and-reasonableness-of-service-charges
The practical problem lies with the freeholder - who no doubt is obliged by the terms of the lease to "repair and maintain" the roof. Recovering the costs is not an automatic and therefore the freeholder may be left out of pocket.... Read More
10:49 AM, 5th October 2022, About 2 years ago
There is an informational article on this very subject, here > https://berniewales.co.uk/who-is-responsible-for-fixing-a-leak/
And one about the insurance excess, here > https://berniewales.co.uk/insurance-excess/... Read More
16:09 PM, 30th September 2022, About 2 years ago
There's a Facebook Group called "Leasehold Advice" which should be useful for you > https://www.facebook.com/groups/334139498656747/... Read More
9:22 AM, 29th September 2022, About 2 years ago
Reply to the comment left by Raj Kirpalani at 28/09/2022 - 18:34
There's no upper limit as far as I'm aware.... Read More
11:48 AM, 28th September 2022, About 2 years ago
There are two main ways to deal with this situation - one collectively and one individually.
Collectively - you could group together with fellow leaseholders to buy the freehold, using Right to Enfranchise. That needs "more than 50%" to participate and therefore involves 'herding cats'. Difficult, but ultimately the best answer ... as you can grant yourselves lease extensions as part of the process and/or change the ground rent to zero (a peppercorn).
Individually, you can serve notice on the landlord requiring a statutory lease extension. That provides +90 years to the existing lease term; e.g. 125 > 215 years ... and also changes the ground rent to a peppercorn.
Either route removes the onerous ground rent clauses in your lease and solves the problem you're worried about.... Read More
19:03 PM, 22nd September 2022, About 2 years ago
Reply to the comment left by Puzzler at 22/09/2022 - 15:48
Ground rent is only due once a legal s166 notice has been sent. Likewise, if the lease allows, the administration charge is only payable once a legally correct demand is sent, which the correct Summary of Rights & Obligations.... Read More
11:30 AM, 22nd September 2022, About 2 years ago
Reply to the comment left by Nina noke at 22/09/2022 - 11:26
Contact me via my website > berniewales.co.uk... Read More
11:40 AM, 21st September 2022, About 2 years ago
It is always worth checking that the service charge demand and/or ground rent notice is in a legal form, in accordance with the law and regulations. Just because you're being chased for 'a debt' doesn't mean that debt actually exists - and if the documentation sent by the landlord/agent is invalid for whatever reason, the debt doesn't exist.
Leasehold Lesson 6 refers > https://berniewales.co.uk/leasehold-lessons-live/... Read More
11:39 AM, 5th September 2022, About 2 years ago
From the leaseholder viewpoint (rather than landlord viewpoint) be careful about breaching the terms of the lease. Read it VERY carefully. Quite often there is a clause requiring the leaseholder NOT to bring anything explosive onto the property. Calor gas bottles, etc, would fall into that category.
I suggest you approach the freeholder/landlord and/or their managing agent for advice.... Read More