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.

Q&A - Service Charges 

QUESTION There are two flats in my building and a shop (freeholder). Never paid service charges as was not requested to but now freeholder wants to appoint a managing agent. Shall I consent to this and what would be the charges and should I contribute? Can my lease be changed if unhappy with something and what is the procedure to follow? ANSWER The rights and obligations of a Landlord are contained in the contractual arrangement between the both parties called a ‘lease’.  These come in all varieties, s

RESI CONFERENCE 2013

Opportunities in the Private Rented Sector (PRS) dominated this year’s RESI Conference 2013, held at the Celtic Manor in Wales. Attended by over 1,000 delegates from the property industry elite, RESI is the UK’s biggest property event. The tone was set by RESI Chair, Mark Easton, Home correspondence for the BBC, who said that housing will be a key battleground of the next election, because while homeowners are desperate for values to rise, homebuyers are desperate for them to fall. Delegates heard keyno

Crabtree Raise £4,000 At Annual Golf Day

Property management and services organisation, the Crabtree Group raised £4,000 at their annual golf day held this year at Dyrham Park in barnet. The money raised was donated to the Willow Foundation, a UK charity that supports seriously ill 16-40 year olds by providing Special Days. The charity was set up in 1999 by former Arsenal goalkeeper and TV presenter, Bob Wilson alongside his wife Megs in memory of their daughter. In the buildup to the event, a number of companies were invited to sponsor individ

ARMA Conference Delegates Urged to Apply for Self-Regulation 

Addressing over 500 delegates at ARMA’s 18th annual conference, chairman Ben Jordan urged members to step up to the plate and come forward for accreditation. He said: “The future shape of our industry is in your hands. Do the right thing. Amend your business practices if necessary. Come forward for accreditation and make ARMA and ARMA-Q the success it deserves to be.” Details of how the accreditation process will work and what members need to do to prepare for it were outlined by ARMA’s chief executive,

DEFERMENT RATES & MANAGEMENT RISK

Readers will be familiar from articles in previous issues of the News On The Block magazine that deferment rates are one of the key components required in the valuation of the landlord’s interest as part of the calculation of the overall premium payable for the lease extension of an individual flat or the collective enfranchisement of a block of flats.  To recap briefly, the landlord’s interest, before accounting for any marriage value, comprises the right to receive any ground rent payable under the term

Getting to grips with ARMA Q 

ARMA-Q is the new self-regulatory regime for ARMA managing agents. In the words of ARMA: ‘It aims to raise standards and quality of service across the residential leasehold management sector - hence the ‘Q’ for quality. ARMA-Q places consumers at its heart.’ If we look back to Brady Solicitors’ survey of over 100 managing agents (‘Raising the Bar’, published December 2012), we are reminded of an open-armed welcome for regulation, with 98 percent broadly in favour and 52 percent believing regulation to b

The Service Charge Summit - A Delegate's View 

One important theme that came out of the Summit was the shift towards a stricter interpretation of leases by the Courts, specifically in relation to service charge clauses. Recent caselaw suggests that Courts are now moving away from the ‘contra proreferentem’ rule. The ‘contra proreferentem’ rule, a standard in contract law, states that if a clause in a contract appears to be ambiguous it should be interpreted against the interests of the person who drafted the contract; always the landlord in relation

Your Rights When Subletting

An absolute prohibition on subletting is rare but can be found in some leases. If present, then it is hard to avoid. It is not a term that an individual leaseholder could apply to the Leasehold Valuation Tribunal (LVT) to vary under section 35 of the Landlord & Tenant Act 1987. An absolute bar on subletting could be the subject of an application under section 37 of the 1987 Act, provided a substantial majority of the leaseholders are in favour of variation. The most common clause requires the leaseholder

Can you have wood floors in your flat? 

Wooden floors are modern and are aesthetically attractive. But noise from every day use travels to neighbouring flats potentially causing nuisance and/or inconvenience. For this reason, leaseholders are usually prohibited by their lease to install anything but carpet and underlay. Such clauses are strictly interpreted. Laying rugs will often not be good enough to comply. In such circumstances, disgruntled neighbours can ask landlords to enforce the lease terms to require the leaseholder with wooden floo

Cannabis Farms - How landlords can protect themselves

The Association of Chief Police Officers’ Report, “Commercial Cultivation of Cannabis 2012” advises that 7865 Cannabis Farms were located by Police in 2011/12, compared with 6866 in 2009/10. The Report reveals that criminals operating Cannabis Farms are using domestic premises, instead of commercial ones. This development should concern Landlords, since the majority of Cannabis Farms are located in rented properties. Police define Cannabis cultivation as “Commercial” if more than 25 plants are found at

To Let, or Not to Let

Few subjects generate as much heated debate as the question of subletting in residential apartment blocks. Whether you are an owner occupier, investor landlord, management company or freeholder, you are likely to have to deal with this thorny issue at some point. As ever, the starting point is the lease. Some leases are silent on the question of subletting; others ban subletting altogether. In between, you will find leases which permit subletting to a limited extent, subject to a myriad of different r

LICENCE FOR ALTERATIONS – THE WHY’S AND WHAT’S?

WHAT IS LICENCE? Under most residential leases a tenant is required to obtain consent from the landlord and/or the management company before making any alterations to his/her property. It’s a simple process also known as an application for a “Licence for Alterations”. The purpose is to record all works that alter the tenant’s demise and protect the freeholders interests and those of other leaseholders/tenants. Whether or not consent (a licence to alter) is required will be determined by (i) the scope of

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