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A wise man once said, “service charge disputes are the route to all misery”. You might ask why is this relevant if you are extending your lease - after all what does it matter how the building is managed? Leasehold specialists are often asked questions like “I want to extend my lease, but I don’t have to worry about all the unpaid service charges, do I?” Well, unfortunately, yes you will. At completion of the new lease the landlord can ask for all and any arrears to be paid off and in fact the landlord

Since 1993 there has been an increasingly recurring trend for the non payment of service charge. Throughout this time residents have provided a multitude of reasons as to why payment has not been made. Some were unaware they had to pay service charge and weren’t notified at the point of sale; many simply forgot or claimed not to have received demands. Excuses for non-payment have included some very interesting ones, such as: “The Queen was residing in the residents back garden, had been taken ill and th

The 15th ALEP Conference took place on 21 October at the renowned Royal Institution in Mayfair.  A sell-out success, the conference – once again sponsored by Kerry London – welcomed over 250 delegates, demonstrating just how far the Association has come since its first event, which played host to just 40 guests. Many of the delegates represented ALEP’s 170 member organisations, and were joined by peers from the wider property sector and the press.  ALEP is committed to promoting best practice specifical

The following scenario is familiar to those electing to enfranchise. A collection of participating leaseholders acquire their freehold via enfranchisement. An investor acquires overriding leases in respect of the non-participating leaseholders. The overriding leases are obviously subject to and with the benefit of the original lease, which the investor becomes the reversioner of. The investor of course is only acting as a ‘sleeping partner’ to the participating leaseholders in a bid to make a profit on

When a property is sold, do service charge arrears pass to the new purchaser? The Landlord and Tenant (Covenants) Act 1995 fundamentally changed the law regarding rights and liabilities of parties to a lease following an assignment, but those provisions are not retrospective. It is therefore necessary to consider the position for old tenancies (those granted before 1 January 1996) and new tenancies (granted on or after that date). In respect of old tenancies, the editors of Woodfall are of the view tha

Through the increase in legislative and regulatory reforms in residential property management, landlords and managers are under growing pressure to ensure that they remain in compliance with their legal responsibilities. There are various statutory remedies and measures available to leaseholders who find themselves in situations in which their entitlements are compromised. One such measure is that of the First-tier Tribunal’s (FTT) right to appoint a new manager pursuant to Section 24 of the Landlord &

One of the principal remedies available to a landlord upon a tenant’s breach of the terms of the lease is forfeiture. The core idea being that the landlord has granted the tenant possession of the land on the condition that the covenants of the lease are complied with. If the tenant fails to observe those covenants then the landlord has the right to take back the property. Parliamentary legislation has placed restrictions upon the exercise of this right in relation to ground rents and service charge arre

Whether you are a leaseholder, a landlord, or a manager, your first point of reference will often be the lease. The lease will tell you what expenditure can be recovered as a service charge, how that expenditure can be recovered and what proportion of that expenditure the lessee is liable for. Most modern leases will contain a list of recoverable expenditure, either in a separate schedule, or by reference to the obligations of the landlord or RMC. If the lease does not clearly and plainly specify a part

Unpaid service charges can hamper good block management and the debt recovery process can be challenging and time-consuming for landlords and managing agents, putting a huge dent in cash flow. When it comes to successful service charge arrears collection it’s important to have sophisticated systems and processes in place that not only get the cash back into your estates quickly, but also maintain the leaseholder relationship. When clients seek help from solicitors with recovering service charge arrears,

Failure to comply with restrictions on services charges is one of the biggest reasons why leaseholders withhold payment. Put simply, if they are not demanded in accordance with the lease and the statutory requirements placed on landlords, they may not be payable until the problems have been rectified. In some cases, the money may never be recovered. Service charges are payments made for services, repairs, maintenance, improvements, insurance, or the costs of management. Leaseholders have a duty to contr

In line with best practice, if a managing agent has a specialist issue, it will seek the help and advice of a specialist. So when it comes to buying electricity, gas, oil and water for your block of flats, do you consider utilities as a specialist area? Is the managing agent best placed to ensure the client enjoys the most competitive rates for their common parts electricity and gas or oil for their communal boilers? When renewal notices appear on the managing agent’s doormat, is the managing agent sav

What’s your role at Livingcity? My core roles and responsibilities include the day to day management of a portfolio of properties and staff within Livingcity’s residential management instructions. I aim to ensure optimum service delivery to the clients, residents, property owners and other stakeholders we work with. How long have you worked in the property management profession? I have a seventeen year career within both the commercial and property management fields. For the past nine years I have work