Your Questions Answered

As residents of Kings Court we unanimously agreed to self manage. Regrettably our landlord is also our managing agent. Having informed him of our decision he is refusing to hand over paperwork relating to the ongoing management of Kings Court, and funds held in our name. What pressure can we bring that will encourage him to forward the documents? Can we report him to the FSA regarding funds?

The secretary,

Kings Court

A

I assume the reference to self-manage is actually to the right to manage (RTM) under the Commonhold and Leasehold Reform Act 2002. If so, section 93 provides that an RTM company can serve notice on the landlord to provide copy documents which are reasonably required in connection with the exercise of RTM. However, compliance is not required until RTM is actually acquired i.e. you don’t get them in advance. If, having acquired RTM, and there is a failure to comply within the requisite period then the matter can be enforced through the county court under section 107.

Anthony Essien,

Chief Executive, LEASE

Q

 Dear Sir

Our management company is in process of acquiring the freehold, under the provision of RTE of two separate blocks of flats, under their jurisdiction. One block is valued at £300,000 and the other at £250,000 We understand that stamp duty will be imposed at four per cent on the combined value of the two blocks of flats. Is there any way that the stamp duty can be avoided or mitigated bearing in mind that the two blocks of flats are separate entities? Your advice would be much appreciated.

H. Roth

A

It is a question of fact whether the transfer is a linked transaction.

If the transfer is between the same vendor and purchaser and the lessees of both blocks are able to use the same communal parts such as gardens as provided by the leases and also share services such as a communal water tap for the gardens then this is a linked transaction. To avoid this you must be able to demonstrate that the two blocks are separate by having a separate purchaser, show that there is no common land between the two and that the services are also particular to each block.

Selchouk Sami,

Partner at Stennett & Stennett

Q

Dear Sir

If a managing agent was to take a case to LVT and they lose, would the other side be able to claim the costs of the tribunal from the agent?

Name and address withheld

A

The LVT in general terms does not have any power to order a party to pay the other side’s costs. The LVT does not operate in the same way that a court does in that the loser pays the winners costs. However the LVT may (1) require a party to reimburse an applicant for the cost of fees; or (2) to award a cost order against a party who has acted unreasonably. Unreasonable in these cases has two meanings (1) where the claim is dismissed as frivolous, vexatious, or otherwise an abuse of process; or (2) in the LVT’s opinion the party has acted frivolously, vexatiously, abusively, disruptively, or otherwise unreasonable in connection with the proceedings. However you must bear in mind that the LVT only has the power to award a party costs up to a maximum of £500.

Darren Kelly

Partner at Dewar Hogan