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.

How to communicate effectively with flat owners

One of the most common complaints managing agents are accused of is ‘lack of communication’. Communication across all levels is key to the success of any good managing agent and is a fundamental aspect in developing, securing and maintaining long client relationships. Good communication increases both trust and faith and is the most important contributing factor to the success of effective management. Communication is fundamental in keeping clients and contractors informed of current events surrounding t

LEASE and LVT under threat

The Leasehold Advisory Service (LEASE) and the Residential Property Tribunal Service are amongst 180 “quangos” which are under threat of government cuts, according to a document leaked to the Daily Telegraph and BBC.  The Leasehold Valuation Tribunal is part of the RPTS and may be merged into the wider Tribunals Service system.  By contrast, the future of LEASE is itself under review as government austerity measures are introduced. What do you think?

Service Charge Protection dropped by Government

Grant Shapps, the Housing Minister, will not be introducing the long-awaited accounting regulations which would have afforded protection to flat owners service charge money. The announcement follows Shapps decision earlier this year not to introduce formal regulation of the property management sector. Managing agents are dismayed.  Brett Williams, Chairman of ARMA said, “….we are given to understand [Shapps] reason is to reduce the regulatory burden. On whom? The very rogues who do not handle lessee mon

Property industry to fund pioneering PhD research in customer service

Funding has been secured and a global search launched for a PhD student to carry out pioneering research to help the property industry better understand the link between customer service and property performance. Sponsorship for the three-year project will come from the Lord Samuel of Wych Cross Memorial Trust Award, together with industry contributions from RealService Ltd and the RealService Best Practice Group (RSBPG). The Trust was set up in 1989 to remember Lord Samuel of Wych Cross, founder of L

RICS consultation to tackle dysfunctional PI insurance market

RICS has launched a consultation to tackle problems about current risk and pricing in professional indemnity insurance (PII) in the UK valuation sector that are creating market dysfunction. The quantity and cost of handling alleged negligence claims is having a significant impact on the cost of PII, not just for firms who have received claims but for the market as a whole. These structural problems could reduce client protection, limit competition within the market and lead to market failure. RICS has

How To Account For Service Charges

The Commonhold and Leasehold Reform Act 2002 was expected to have a major impact on a number of areas of leasehold management. Whilst many of the new regulations anticipated have come into law, those most directly affecting accounting were never enacted. In 2010 the new government let it be known that it was unlikely that it would enact the regulations previously anticipated. As a result, expected regulations regarding the form and content of service charge accounts, independent accountants’ reports and d

Lords call for Law commission to look at leasehold law

Members of the House of Lords have called for the law commission to simplify leasehold law. Baroness, Lady Butler-Sloss and Baroness Williams urged the Conservative Minister, Baroness Hanham to consider the Government’s position during a Parliamentary debate on consolidating all landlord and tenant legislation. Baroness Hanham admitted that, “... leasehold law in particular can be complex and people find it difficult to understand” but refused to commit to a Law Commission consultation. The Federation of

Are your service charges too high?

It is easy to moan about how much your managing agent is charging, but have you considered what your service charge goes towards? There is a myth to dispel here: a service charge is not the amount you are paying your managing agent to look after your development. Their fee, a part of the service charge, is normally a few hundred pounds per flat per annum. The bulk of the annual service charge pays for the upkeep of the communal areas and services at your property. So why does it cost so much to live i

This year, turn over for a new lease

The value of thousands of flat owners’ properties will reduce if they do nothing and hope for the best. Many leases are dated at the end of the quarter, particularly June and December. If your lease is below 85 years, every year the lease reduces, the cost of a lease extension or freehold purchase rises. Under 80 years, the cost rise accelerates. This can be thousands of pounds a year, eroding the underlying value of the flat over time. It is simple to preserve the value of your investment, if you act i

How major works costs split block

Frognal estate comprises five blocks totalling 54 flats. By 2009 it had been neglected for decades, there was a long history of multiple litigation between the landlord and the lessees, the lifts had been out of service for years, Enforcement Notices had been served by the Local Authority and insurance cover for water damage had been withdrawn. The Residents’ Association (FERA) applied to the LVT for a Manager to be appointed, the landlord agreed, the Tribunal approved a Management Plan, and a Specificat

Recovering your Legal Expenses 

Insurance providers have offered legal expenses insurance policies in the property owner and property management sector for many years. Many of today’s insurance policies miss a critical component by not fully protecting the policyholder against legal costs incurred by defending applications made to the Leasehold Valuation Tribunal (LVT). Today’s economic market, together with well informed leaseholders means that LVT applications and determinations are becoming more commonplace. This increase in number

Laying down the law on wooden floors

Unfortunately, many leaseholders undertake works within their flat which are often in breach of the terms of their leases. One common breach, is the removal of carpets and installation of wooden floors. In accordance with the terms of many leases, carpets must be laid in all areas except for the kitchen and bathroom, unless otherwise approved by the landlord. If no such consent has been granted, you could be currently in Breach of Lease. The implications of being in Breach of Lease are serious and can

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