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 …
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 …
What is the service charge for? Service charges are related only to the communal areas of the property, like staircases, entranceways, corridors, and outdoor areas, and are separate from costs incurred to maintain an occupant’s own property. The managing agent or responsible person in a block will issue the service charge typically every year. If …
What is a service charge? A service charge is an amount payable by a leaseholder or tenant, that contributes towards repairs, service, maintenance, general improvement, insurance, and management costs overseen by the freeholder, or managing agent. If you are unsatisfied with the service charge you are paying, get in touch for advice.
What is the point of a reserve fund? A property with a healthy reserve fund is ultimately preferable to both occupants and the managing party. This is because, in the event that major works are required in the property, a large portion, if not the entirety of the cost will be absorbed by the reserve …
What is a reserve fund? Typically included as part of the service charge, a reserve fund (also known as a sinking fund), is a fund that is set up by the freeholder or managing agent which sets aside a set amount of the service charge that will be used to cover large projects and repair …
What is the Right-To-Manage? RTM grants qualifying leaseholders the ability to take over the management of their property if they feel the current management arrangement is insufficient. RTM was first introduced through the Commonhold and Leasehold Reform Act 2002 and is a significant right for leaseholders and can be exercised by long leaseholders. Using the …
What is a leaseholder? The leaseholder rents the building from the freeholder for a specified amount of time, typically a lease lasts for 99 or 125 years, but can be longer and can be extended. If you are unsatisfied with the management of your block, find out how you can switch managing agents as a …