Not all leases are the same, but in general property owners (Lessees) are responsible for inside of their flat or house. This normally includes all internal walls, ceilings and floors, windows, glass and their frames plus all services that exclusively serve the property. The Landlord or Management Company is responsible for repairs to the common areas and common services, the structural fabric of the building, including roofs, main walls, gutters, etc and problems emanating from the building. The cost of these repairs is financed by the service charges levied on property owners.

Before purchase of the property, their legal adviser will have advised the property owner of their rights and obligations according to the Lease. Property Owners need to be aware of the terms of the Lease and we recommend they keep a copy for reference. We occasionally find property owners are in breach of their lease terms because they have not read or understood their obligations. For example, most leases prohibit the keeping of pets in an individual flat or property, limit car parking, impose noise limits and prohibit items being left in the common areas of the block due to health and safety regulations.

Service Charges are raised against property owners by the Property Managers to pay for the cost of repair and maintenance of the fabric of the building and external common parts as outlined above. They do not cover matters arising from within an individual property. A purchaser should be informed by their legal adviser of the percentage of the overall charge that they will need to pay. This percentage will be clearly listed in the lease of the Property and forms the basis of the Service charges Block Service Charges are normally due twice a year. On new developments, the service charge for the first charge period will be paid on completion of the purchase.

By owning a property within the development and signing the Lease or Transfer, owners have agreed to pay the service charges. Non-payment puts the property owner in breach of the lease covenants. This may result in suspension of some services for the development and enforcement action will be taken against non-payers.

When a development is new, the developer or ground landlord is generally a director of the Management Company or the Property Managing agent and, depending on the terms of the Memorandum and Articles of Association of the company, individual property owners may also become directors.

Leaseholder Credit Control
Non-payers of service charges are pursued with consequent risk of monetary and legal penalties. Right 2 Manage’s policy is to issue a warning letter. If this is ignored, a second letter will be issued which includes an administration charge. A third letter will be issued with a further administration charge, (where appropriate) interest added to outstanding balances and a threat of recourse to legal action. If payment is not forthcoming and the property is mortgaged, we may advise the mortgage lender that their security is at risk. Any legal costs incurred will be charged against the owner. The owner is made aware that non-payment can also result in the landlord pursuing forfeiture of the Lease, which means that the owner could lose the property.

Legal Enquiries relating to Purchase and Sale
When a flat within a block or house is being sold, we are requested by solicitors acting for the sale to provide details on all matters relating to the property. We endeavour to deal with these requests as quickly as possible in order that a sale is not delayed. The majority of this information is submitted in the form of an extensive leasehold questionnaire. That questionnaire is called an LPE1. There is a charge for this service of £225.00 +VAT.

Limited Company Administration
Where there is a block management company we receive a separate fee for acting as Company Secretary, administering company books, completing Companies House Annual Returns, submitting forms to appoint, resign or change the address details of directors, preparing annual reports, running an Annual General Meeting, serving notices and producing minutes.