The Leasehold and Freehold Reform Act 2024 was one of the final pieces of legislation to be passed before the prorogation of Parliament on Friday, May 24th, 2024. When will the legislation become law? Royal Assent has been granted, however, this does not constitute the law’s enforcement, and we currently have no expected date of …
Leasehold reform 2024: How and when will the changes affect you? Read More »
What is a “Section 20 Consultation” Section 151 of the Commonhold and Leasehold Reform Act 2002 (colloquially known as “Section 20”) grants leaseholders the right to be consulted on costly works in their building before they are carried out. When does Section 20 need to be used? The freeholder/RMC/managing agent (responsible party) that wishes to …
Just as every block and estate is different, there are many different property management arrangements. Here are four of the most common block and estate management arrangements: For simplicity’s sake, the term ‘leaseholder’ in this blog refers to a long leaseholder who was granted an original lease of over 20 years. Leaseholders are not necessarily …
Are you looking to take back control of your block of flats? As a leaseholder, you reserve the right to do this, subject to certain criteria. Following typical procedure, you can transfer the management functions to a Right to Manage company (RTM). This right is enshrined in the Commonhold and Leasehold Reform Act 2002. RTM …
The Right to Manage (RTM) & How it Empowers Leaseholders Read More »
Leasehold and Freehold Bill Condensed: How it Affects Leaseholders and Freeholders Going Forward After many delays and wide speculation, the Leasehold Bill was officially announced during the King’s Speech earlier on Tuesday, 7th November 2023. The speech formally introduced the ‘Leasehold and Freehold Bill’, which promises to deliver big changes to the property sphere. The …
A Residents’ Management Company (RMC) is a type of non-profit company that is composed of the residents of a given block or estate and oversees the management of the property, and the units inside it. Upon corporation, each resident will become a shareholder in the company, meaning that they become responsible for the management of …
Commonhold is another option from long-leasehold as an ownership strategy regarding a block of flats or an estate. In such an arrangement, individual flat owners (known as ‘unit holders’) will own the freehold of their flat and reserve the right to become a member of a ‘Commonhold Association’, which owns and manages the common parts …
What does a managing agent do? The managing agent (or property manager) of a block ensures the smooth running and day-to-day maintenance of the property, including: Overseeing repairs and maintenance jobs. Upkeeping the communal areas. Collecting service charge payments. Ensuring the property meets all legal requirements. A managing agent is typically employed by the freeholder, …
How does the Leasehold Reform Act 2022 affect ground rent charges? The government introduced the Leasehold Reform (Ground Rent) Act 2022, which came into effect on 30th June 2022 and applies to all new and renewed leases. The new legislation discontinued the charging of ground rent on residential leases with at least 21 years in …
What is ground rent? The ground rent of a property is paid by all leaseholders to the freeholder as per the terms of the lease. The ground rent is separate from the service charge in that it is payment for the leasing of the freeholder’s land, and is paid directly to them, not the managing …