Featured Articles

Get the answers to your questions and stay up to date about apartment building management with our featured articles and NOTB guides, on topics such as service charges, right to manage, buying your freehold, major works, building insurance and other issues about blocks of flats.

Buying a flat with a short lease: options to consider

What if you’ve found the flat of your dreams but the lease term is short?  If you’ve found a property that you like but the lease has anything fewer than 85 years left to run, alarm bells should be ringing. This is because once a lease gets to less than 80 years, something called ‘marriage value’ comes into play, which makes extending it much more expensive. It gets even more difficult if the lease has fewer than 70 years to run, as lenders will generally not grant a mortgage. Care needs to be taken if t

Selling and buying a flat with a short lease

The Leasehold Reform, Housing and Urban Development Act 1993 enables eligible leaseholders to acquire a 90-year extension to their existing lease, subject to a peppercorn ground rent. The other main terms of the lease, such as service charge and obligations to repair, are to remain substantially the same, although limited changes are allowed in order to update the document or correct any defects which may exist in a poorly drafted lease. The key qualification criteria for a lease extension are that the or

The 3% Stamp Duty surcharge and lease extensions

Will I have to pay the 3% Stamp Duty Land Tax Surcharge to extend the lease of my main residence? The answer is more than likely yes if the following criteria are satisfied: Your new lease has a term of more than 7 years. The premium you are paying for your new lease is more than £40,000. You own another residential property, in the UK or otherwise, which has a market value of more than £40,000. The legislation introducing the 3% surcharge came into force in March 2016 and applies to b

Rights of extension and purchase for leasehold houses

The press for leasehold houses has been less than positive of  late, particularly concerning ground  rents, but leasehold houses are not  a modern phenomenon and existing legislation is favourable to lessees.    Sheffield is a leasehold house hotspot in the United Kingdom and being a Sheffield-based law firm, PM Legal Services has expert knowledge of the complexities and the various legal issues that arise from them.   A leasehold house is a diminishing asset that could, in certain circums tances, be

What a racket - Noise nuisance and the law

All night parties do not generally encourage amicable and cordial neighbourly relations. A selfish and inconsiderate neighbour can be stressful and upsetting, and often as a result, long suffering residents do not know which way to turn.   Most forms of neighbourly unpleasantness falls into the category of private nuisance. “Nuisance” is another category of “tort”, or civil wrong, and it covers a range of matters which interfere with an owner’s use and enjoyment of his or her property, without necessarily

Managing Agents: Are you ready for the new data protection laws?

The EU General Data Protection Regulation (GDPR) is the biggest ever shake up to data protection laws, yet many businesses may be unprepared, says Deacon, the blocks of flats insurance specialists. With the GDPR’s introduction taking place in May 2018 and the UK not leaving the EU until 2019 at the earliest, Brexit will not affect the introduction of the GDPR in the UK. The UK will replace the 1988 Data Protection Act (DPA) with legislation that mirrors the GDPR post-Brexit. This means now is the time to

Issue 90 Online Now

Issue 90 of News on the Block is now available to view online.  This issue includes some of the following articles:  Nationwide's £54m Ground Rent portfolio  Tragic fire at Grenfell Tower Landlord loses Tribunal appeal Criminal landlords to be named and shamed Raising the roof will raise you cash: If you’re struggling to find the funds to upgrade your block, did you know that your roof could be the answer? Enfranchisement & Right to Manage Special Feature The practical points of RTM:

Q&A - Lease Extension

QUESTION I am the chairman of an Independent Leaseholders Association (10,000 RTB members) We have held regular monthly meetings for approximately the last eight years. My RTB (flat) lease dates from 1992. Since I do not wish to pass on a problematic legacy to my family on my demise, I have recently been negotiating with the council to purchase a 99 year extension to the existing lease. I was recently sent a draft of the proposed extension stating that the extension is granted under S 56 of the 1993 Act.

Effective Emergency Lighting

How hard do you imagine it would be to find your way out of your block in the dark if the lights had failed? Emergency lighting saves lives. Anyone living in a flat hopes they will never need to rely on it but when a major incident does occur, effective, well maintained lighting and signage is vital. In an article on emergency lighting regulation published earlier this year, I wrote: “Imagine how much more serious the worst-case scenario could become if your system is poorly maintained and doesn’t work pr

Enfranchisement & Right to Manage feature 2017

This guide to the key concepts is written by independent industry practitioners and includes the following articles:  Selling & buying a flat with a short lease: Iris-Ann Stapleton looks at the procedure The practical points of RTM: Stan Gallagher and Will Beetson warns of the issues that can arise  Elim Court: How wrong is right?  Mark Chick looks at a recent court case Rights of extension and purchase for leasehold houses:  There is legislation out there, says Liz Rowen  The 3% Stamp Duty Surcharg

Raising the roof will help you raise cash

Jovan Mihailovic and his wife bought their flat in Abbey Road, West Hampstead, 25 years ago – and by their own admission, an upgrade to both exterior and interior was well overdue. Like many communal freeholders, the Mihailovics and their seven neighbours balked at the £400,000 cost of the required work… until the answer came in the form of rooftop development. Jovan and the other freeholders appointed Apex Airspace, the market leading developer of “airspace”, who bought the roofspace above his block, hir

Management firm can add legal costs to service charge, court rules

The management company of a block of flats has been told it can add legal costs to its service charge which it incurred after a tenant made empty threats to take it to court.   Bretby Hall Management Company (BHMC), which manages 30 apartments within a former country house in Burton upon  Trent, racked up £11,000 in costs when it was threatened by tenant Christopher Pratt.    Mr Pratt had made threats to begin several court proceedings for several years, but none were ever carried out. A first tier tribun

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