THE
LEASEHOLD
ADVICE
CENTRE
We have detailed below a very brief description of the relevant
legislation which applies to The Right To Manage, Collective
Enfranchisement & Lease Extensions together with details
regarding the Leasehold Valuation Tribunal (LVT). Naturally, the
full text is very detailed & complex but is included in our
packages should you wish to proceed further and explained in
simplified form.
The Right To Manage
 The
Commonhold and Leasehold Reform Act 2002 is legislation which
provides an opportunity for the flat owners, to run their own
affairs and to make their own decisions about the management and
upkeep of their flats, including the insurance, repairs, service
charges etc. by means of The Right To Manage - 'RTM'
The landlord's
consent is not required & even where Landlords may be absent the
Leaseholders should be able to secure the management via RTM.
There is no need to prove mismanagement by the landlord or the
current managing agent to implement the right. Basically it
means that the lessees (via what is known as an RTM Company
which they set up & own) have control & in a number of cases
will no doubt save considerable sums on repairs, maintenance,
management fees, insurance premiums etc, etc, & possibly enhance
the saleability & value of their property. The landlord's
consent is not required & there is no need for the
leaseholders to prove mismanagement.
Basically it means
that the lessees have control & therefore could save
considerable sums on repairs, maintenance, management fees,
insurance premiums etc, etc, & possibly enhance the saleability
& value of their property. Furthermore, where the landlord has
collected service charges in advance he is under an obligation
to hand over all the unspent sums including any reserve account
or sinking fund, so any monies that you have paid & are held by
the Landlord are required to be returned. Whilst there are
specific procedures to follow, the costs involved are relatively
minimal & the entire procedure is relatively straightforward
when followed correctly.
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The
Leasehold Reform Housing and Urban Development Act 1993 (as
amended) is legislation which provides an opportunity for an
additional term of 90 years, at a peppercorn rent which is
basically the same as being rent free. The additional 90 years
is plus the present unexpired term.
It could be that you
have a short lease & are having problems trying to sell your
flat or maybe have a clause in the lease which permits a
significant rise in ground rent (which sometime could be based
as a percentage of the properties value which could therefore
make the Ground Rent rise to hundreds of pounds in itself
significantly effecting the value / saleability of your
property). Even if you do not have a short lease there could be
benefits in reducing the ground rent to ‘a peppercorn’ and or
ensuring that future rent increases stipulated in your current
lease no longer apply!!
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Buy The Freehold - 'Collective
Enfranchisement'
The
1993 Leasehold Reform Act (as amended) provides the right for
the leaseholders (via a special Company - the Right to
Enfranchise Company) to compel the Landlord to sell the Freehold
to them. Once the Freehold in the hands of the Lessees they (via
the RTE Company) effectively own, run & have control of the
building themselves.
The provisions
relating to the RTE Company, the Notice of Invitation to
Participate and the Valuation Date have not yet been commenced;
they are expected to be introduced shortly, until such time
transitional arrangements will apply.
Leasehold Valuation Tribunal - (LVT)
Resolving disputes
relating to various leasehold matters are, in the main,
determined by The Leasehold Valuation Tribunal (also known as
the 'LVT' who are part of the Residential Property Tribunal
Service) which can be as a result of an application having
being made by either the Tenant or the Landlord .
There are various
offices which cover a specific area of England & the five
regional RPTS offices are:
RPTS (London Rent Assessment Panel),
London
RPTS (Northern Rent Assessment Panel),
Manchester
RPTS (Midland Rent Assessment Panel),
Birmingham
RPTS (Eastern Rent Assessment Panel),
Cambridge
RPTS (Southern Rent Assessment Panel),
Chichester.
Each LVT usually
consists of three members: a lawyer who is often the chairman, a
valuer and a lay person. It is entirely independent and
impartial in its semi-formal approach & neither side is required
to be represented. After listening to the argument from both
sides and raising their own questions etc. they determine the
issue as soon as possible after the hearing. No decision is
normally provided at the hearing itself.
Application can be
made under;
Under the
Landlord and Tenant Act 1985
 the
liability to pay and the reasonableness of service charges
matters
relating to insurance through the landlord's nominated insurer
limiting
the amount of a landlord's costs of appearing at an LVT which
can be charged to the service charge
dispensation
for service of a consultation notice
Landlord and
Tenant Act 1987
for
the appointment of a Manager
for
a variation of leases
for
the determination of the purchase price following an Acquisition
Order
Commonhold and
Leasehold Reform Act 2002
the
liability to pay and the reasonableness of administration
charges
in
respect of works under Estate Management Schemes
the
liability to pay and the reasonableness of charges under the
Right to Manage
determination
of alleged breach in connection with forfeiture
appeals
against withholding of service charges
Where you have
utiliised our services and then require an application to be
made to the Tribunal we can supply the appropriate forms for you
or, subject to arrangement may be able to assist you with the
completion of the forms and the preparation of your application.
Please contact us for further details.
Please
ensure you carefully read our Terms
& Conditions to which this website & our services are subject
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Leasehold Advice Centre - Putting you & your
lease first |
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