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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

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

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

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

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

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

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

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

QUESTION Dear Sir I am a leaseholder and shareholder of an historic estate west of London. There are three main buildings on the same insurance policy, one Grade I 9 flats , another Grade II 4 flats and the third just 20th century 3 flats. The schedule currently shows the cover and premium for each of the buildings. The Grade I had a major fire five years ago and has not been completely rebuilt (outer walls only) due to the underinsurance and is the subject of a legal case. As there are 3 totally diffe

Today, television fans take for granted advanced functionality such as the ability to pause and rewind live television, record two or more shows at once, or access programmes on demand. However, until recently some apartment residents have not enjoyed an equal status with regard to being able to use such features to their full extent. This is about to change with the introduction of a new and innovative Single Cable Solution (SCS), officially launched by Sky at ARMA’s 18th Annual Conference. This will pr

Chancel repair, the legislation dating from medieval times that allows churches to turn to property and landowners with an historic connection to a church to fund repairs – may yet have a sting in its tail for homeowners. Church councils across England have until 13 October 2013 to register any potential liability to fund the repairs of a church’s chancel. Church councils will not be able to register a chancel repair liability against the title of a property sold after that date, meaning that the buyer c

CPBigwood has acquired DMA Chartered Surveyors based in Eastleigh, Hampshire. The purchase gives the Midlands-based group a foothold in the south that the firm’s board intends to grow. DMA Chartered Surveyors specialises exclusively in residential leasehold property and manages around 3,000 apartments and houses. CPBigwood partner Brett Williams, who led the negotiations, said the acquisition took the number of properties managed by the firm to over 20,000 across 30 counties. “We already look after arou