Flat-Living.co.uk Legal
purchased a property together and the purchase price was funded by a contribution of £6,000 from Miss Jones (the sale proceeds from her caravan) and the balance by means of an Endowment Mortgage. The financial arrangement between them was that Mr Kernott gave Miss Jones £100 per week and from that and her own earnings she paid for housekeeping, the mortgage, outgoings, and the insurance premium. Miss Jones was also primarily responsible for building an extension to the property, which increased its value by 50% of the purchase price. In late 1993, and after the birth of four children to the couple,
they separated and Miss Jones assumed sole responsibility for the maintenance of those children and remained in the property with them. In May 1996 Mr Kernott bought himself a property. In May 2006, more
than 12 years after he had left, Mr Kernott sought payment of his half share in the property purchased jointly with Miss Jones.
Right To Manage (RTM)
Report by Scott Wilson of Urang Group
control from bad landlords, but also to empower leaseholders, who generally hold the majority of value in the property, to take responsibility for the management of their block. The process is relatively simple. The landlord’s consent is not required,
T
nor is any order of court. There is also no need for the leaseholders to prove mismanagement by the landlord. The right is available, whether the landlord’s management has been good, bad or indifferent. The right is exercised by the service of a formal notice on the
landlord. After a set period of time, the management transfers to the right to manage company (the RTM company) which has been set up by the leaseholders. Procedures must be followed precisely, or the management will not
be secured. It is advised that blocks employ professionals to coordinate the process. Most lawyers and property management companies offer this service. The cost of the process commonly ranges between £40 and £500 per flat. The full edition of this editorial is available to view at http://www.
flat-living.co.uk/information/right_to_manage_urang.htm and once all editorial pieces have been commissioned will form part of Flat Living’s Leasehold Guide, providing information and advice on every aspect of living in a leasehold flat and running a Residents’ Management Company.
As flat owners, you can set up and control an RTM company, which will typically save you money on insurance, repairs and general maintenance – cost effectively improving the appearance and value of your flats. The Right to Manage process gives you, the leaseholder, the power to appoint the managing agent of your choice and to control what happens at your property.
To take advantage of this offer contact Urang’s RTM specialist: Phone: 020 7610 8314
Email:
scott.wilson@urang.co.uk
he commonhold and leasehold Reform act 2002 pro- vides the right for leaseholders to get the transfer of the landlord’s management functions to a company set up by them - the right to manage company. The right was introduced, not just as a means of taking
Love and marriage? T
he case of Kernott v Jones was heard by the court of appeal and Judgment has recently been handed down. the decision should sound warning bells for both un- married couples and solicitors who act for them on the purchase of property.
The facts, briefly, are that in 1985 Miss Jones and Mr Kernott BENEFICIAL INTEREST
It had long been thought that the Courts had power to alter the beneficial interest of parties in property where there had been greater financial contribution by one party and at the first Hearing, and subsequent Appeal, the Court determined that Miss Jones was entitled to 90% of the beneficial interest in the property. The matter then came before the Court of Appeal who concluded
that the critical question was whether it could properly infer from the parties conduct since separation a joint intention that, over time, the 50/50 split was to be varied. The Court concluded that it could not infer such an intention and that the original purchase in joint names created joint beneficial interest and that nothing which had happened over the passage of time since separation had displaced those interests, not even the fact that Mr Kernott had purchased property elsewhere and that Miss Jones had paid all outgoings on the original property. In a salutary warning to both unmarried couples and solicitors, Lord
Justice Wall stated that “it is therefore of the utmost importance, as it seems to me, that those who engage in these transactions, and those who advise them, should take the greatest care over such transactions, and must – particularly if they are unmarried or if their clients are unmarried – address their minds to the size and fate of the respective beneficial interests on acquisition, separation and thereafter”.
Alan Porter, a partner at Thackray Williams Solicitors reports on important information where property is held in joint names.
www.flat-living.co.uk
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