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FACT 1: A lease is a wasting asset. The value of a leasehold property will diminish (relative to its value had it been afreehold) as the lease runs down. The rate of decline is modest where it is long, but accelerates as it gets shorter. Correspondingly, as the lease length reduces so the cost of extending it increases. The longer you leave it, the moreexpensive it gets. Broadly. FACT 2: When you extend your lease, you are acquiring (most of) the landlord’s equity in your flat. You are therefore a buyer,

On 10 December 2008 the House of Lords gave judgment in respect of 5 appeals known,as the Sportelli appeals. The issue raised was whether landlords are entitled to have “hope value” in the valuation of their interests under the Leasehold Reform Act 1967 (“the 1967 Act”) and the Leasehold Reform, Housing and Urban Development Act 1993 (“the 1993 Act”). Part of the price paid by a leaseholder acquiring a new lease or the freehold, is “marriage value”. In simple terms, this is the additional value that can

The recent, yet expected, official declaration that Britain has fallen into a recession means that over the coming months unemployment is set to increase to well over 2 million and could reach over 3 million by the end of the year. Losing your job can be devastating and overwhelming, both financially and emotionally. The word “redundancy” being used on a daily basis and with more businesses cutting back or closing altogether many people are facing unemployment. And trying to find a job in this economic

YOU WILL NEED TO KNOW The rent payable by the intermediate landlord (‘IL’): at the valuation date and following any increases. All the rents receivable by the intermediate landlord at the valuation date and the rent receivable from the flat following any increases. METHOD 1.  Apportion the head rent as between the various flats.  There is no hard and fast method for the apportionment, but there is one LVT decision on this issue (Regency Lodge - LON/NL/5243/06). 2.  Test whether the IL's interest in

NOTB Could you tell us about your background and how you became involved in property management, particularly the benefits  of a mechanical engineering background? AT After gaining a degree in Mechanical Engineering from King’s College London, I went straight into graduate training in IT consultancy and worked for ICL and Oracle. After 8 years in the industry and having worked on major IT projects (some property related) I then decided to focus my efforts on my first passion – property. Having been intima

In the Government's lofty view the justification for regulation arises from risk and this is directed more toward protection of life and limb than financial integrity.  The  fantastically named Better Regulation Commission concluded: “The BRC takes risk to mean the full range of social, environmental, economic, technical, health and other threats, large and small, that we as a society recognise and believe the Government should protect us from.”  (Monty Python, where are you now?)  The fact that unr

The role of managing agent is probably one of the most important in property, holding hundreds of thousands of pounds of clients money and dealing with issues from personal disputes to larger maintenance contracts. Choosing the right managing agent is therefore essential. Say the managing agent continues to wear the second hand coat of the past when they were the agents of and enforcer for the dark landlords, unregulated and uncaring.This coat is being increasingly shed and it occurs to me that today yo

Recognising the Residents  To be effective, a residents’ association should be formally recognised particularly as legislation confers on recognised associations additional powers and rights.  Advantages of Recognition Recognised Residents’ Associations are entitled to:- Obtain information about service charge accounts; Be consulted about the landlord’s choice of appointing managing agents; Be notified by the landlord of proposed major works and receive copies of estimates etc. Su

Many lessees and certainly readers of News on the Block may have heard the term “enfranchisement” without really knowing what it means. Basically enfranchisement is a group or collective right for leaseholders of flats, subject to certain requirements and qualifications under current legislation, to buy the freehold of the building they live in, regardless of whether the landlord wants to sell.  Seeking a lease extension on the other hand, is an individual right for leaseholders to buy a new, extended lea

Most problems can be resolved quickly by talking or meeting with the tenant on site, but often the problem complained of is simply out of our control.  These are the more frustrating aspects of managing a block of flats well.   Here are some of the most common issues and the difficulties caused- Withholding keys for access this is probably the number one frustration as the operative has to buzz residents doors until they find someone who is in and who will allow access which annoys the ten

Winter is the time to start planning. It may appear that nothing is going on right, but you couldn’t be more wrong, plan ahead and you will reap the benefits. The garden has little appeal in winter, however a garden should now be looking structured, tidy and just showing those first signs of spring. Planning, preparation and a good maintenance programme are essential. Communal gardens in town provide a challenging environment, intensive planting means intensive problems, pests and diseases are more prev

The enfranchisement legislation is complex and mistakes can occur. As a consequence claims against professionals including solicitors, surveyors and barristers are relatively commonplace. Clients are often looking for someone to blame and from whom they can recover their losses. A professional owes a duty to its client and therefore professional negligence occurs where a professional fails to perform his responsibilities to the required standard. What can be claimed? A professional will enter into a