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The right to manage divides opinion. C&LRA 2002 provides that any agreements purporting to exclude or modify the right will be void. Arrangements can be created so the required qualifying conditions are not met and, if not a sham, successful avoidance is possible. Building The premises must either be a self-contained building or part of a building. At development, it may be possible to construct a building which falls outside the scope of the Act; for example, by ensuring the block is connected to (i.e.

Development value is often raised in a collective freehold purchase, causing confusion, muddled thinking and unnecessary references to Tribunal. As with all valuations the amount depends on how a potential purchaser looks at the opportunity; what is it and is it physically possible? How long will it take and how much will it cost? Is there planning permission or is it likely? What are the risks? How much do I need to set aside for this? Schedule 6 of the 1993 Act tells us how to deal with this. Paragraph

In April 2012, the Leasehold Valuation Tribunal gave judgment in the 1967 Act case of 23 Pont Street, London*. Although a house for enfranchisement purposes, the property was divided into seven flats, including one occupied by the leaseholder and another by a housekeeper. The other flats were let on rack-rent tenancies. The lease was unusual. When granted in 1978, with a starting rent of £2,000 per annum, five-yearly reviews were imposed by reference to 2% of the freehold value of the property at the re

A greater focus on leaseholders, ongoing issues with service charge recovery and an open-armed welcome for regulation are the key findings in the latest independent survey of the property management industry. In conjunction with News on the Block, property management specialists Brady Solicitors commissioned independent market researchers to undertake an in-depth industry survey. 109 property managers took part during November 2012 and Brady Solicitors’ MD Clare Brady shares with you some of the resea

The “Hosebay” appeals, brought by two central London Landed Estates, were challenging a Court of Appeal decision that a property used wholly for commercial purposes could qualify as a “house” under the Leasehold Reform Act 1967 (“the Act”). The Supreme Court unanimously allowed both appeals. To satisfy the test of whether a building is a “house” under Section 2(1) of the Act, the building must be “designed or adapted for living in” and “a house reasonably so called”. The judgement stated both parts are

Not to generalise, but enfranchisement can broadly be divided into three groups.  There are those who extend their lease.  There are those who purchase the freehold of their house.   And there are those who, collectively with their neighbours, purchase the freehold to the block within which they own a flat.  There is surprisingly, an ever emerging fourth category.  These are the flat owners who do nothing but sit on their ever diminishing asset.  The expression ‘resting on one’s laurels’ could be said to

The 50% Participation Rule! As enfranchisement is a group action, a common question often asked is, “do all my neighbours need to take part?” Under the legislation, the participating tenants must be those of the flats comprising not less than 50% of the total number of flats on the notice of claim is given (unless there are only two flats in the building, both flats must participate). Note, that it is the total number of flats in the building. In other words, this includes those of qualifying t

Leasehold owners have two rights afforded to them if they wish to take over the management of their building.  First, the Leasehold Reform, Housing and Urban Development Act 1993 enables leaseholders to acquire the freehold of their building following a collective enfranchisement claim.  Secondly, the Commonhold and Leasehold Reform Act 2002 permits leaseholders to take over the management of their building.  Apart from the obvious benefit that comes with a collective claim, securing the ownership

This pull out and keep guide to enfranchisement introduces the key con-cepts and is written by independent industry practitioners.  Articles Include: 22 Leasehold enfranchisement or right to manage? A lessees’ conundrum 24 “Ping-pong” freeholds! A legislative loophole. 26 Why 2013 may be time to enfranchise in prime central London 28 Can you enfranchise a “house”? an interpretation of a long awaited court decision 30 Capitalisation rates: the next major battle ground in enfranchisement? report on the “

As 2013 gets underway and best intentions made on New Year’s Day start to fall by the wayside, Alex Greenslade, Honorary Secretary of ALEP (the Association of Leasehold Enfranchisement Practitioners), urges flat owners to stick to one important New Year’s resolution – to check the length of their lease. At the end of December, and at other times throughout the year, the length of many flat owners’ leases becomes one year shorter. The inherent value of a flat is linked to the length of its lease, wh

PILE EM HIGH, SELL EM CHEAP. This was the motto of Tesco founder Jack Cohen when he started out as an enterprising retailer in London’s East End over 90 years ago. Tesco is now the second most profitable retailer in the world. So does his motto work for residential property management? Not for the leaseholder. Thankfully, Resident Management Companies (RMCs), who are the hardest to please, are starting to accept the advantages that paying decent fees brings. As the residential property management sector

QUESTION Dear Sir I live in a block of 15 flats which is managed by a residents management company - of which I am a director. The block is situated on a road where the local council have introduced restricted parking. Because of these restrictions we find that non-residents park in our small, off street, car park. Please advise me if we have any rights in this respect and, if so, how we may enforce them Reader name withheld ANSWER Thank you for your query about the ‘thorny’ issue of parking.