RMClandlordsmust giveNotice of Intentiontoall tenantsbefore carryingoutmajorworks[also knownas‘qualifyingworks’]which willcosteachtenantmore than £250–thisis thefirst requirement of theconsultationprocedures requiredbystatute. If thecomplete consultationprocedureisnot strictlyadheredto thendespite the actualcost of theworkscarriedout thetenantswilleachonlybeliable for£250.
N
Aset ofrulesandguidancewhich mustbeobservedbeforeclaimsare issuedatcourt orLVT–although strictlyspeakingthereisno specificprotocol forservicecharge disputes.However,thecourtwill expectpartiestoact reasonably inexchanginginformationand documentsrelevant to theclaim andgenerally toavoid thenecessity forproceedingstobestartedat all.
P Q
NOticeOf iNteNtiON
R
Pre-ActiON PrOtOcOl
Allservicechargemoniesmustbe heldonthestatutory trustimposed byS42oftheLandlordandTenant Act
1987.Theservicechargefunds mustbeheld inadesignated accountwhichis tosafeguard againstbadaccountingpractices andinsolvencyofRMC/landlord.
QuAlifyiNg lONgterm AgreemeNt
A‘QLTA’ isanagreemententered intobythelandlordforatermof more
than12months.Assuch thelandlordmust givetenants Notice of Intention[seeNabove] beforeenteringintoaQLTAand mustobservetheconsultation procedurestrictly.Failure todoso willmeanthat reimbursement for anyworkscarriedoutasaresult of theQLTAwillbelimitedto £100 per tenant - irrespectiveof the actualcost.RMCsshouldexercise cautionbeforeappointingmanaging agents forcontracts ofmore than12 monthsunlesstheyhavecarried out theconsultationprocedure.
Flat Living Winter 2011
S T
right tOmANAge
Tenantscanbandtogetherand collectivelyacquirearight to performmostmanagement
functions.Therearestringent conditionstobesatisfiedbefore RTMcanbeacquiredandan exactingstatutoryprocesstobe adheredto but if thetenantsare successful thentheywillperform
managementservices.TheRMC/ landlordis leftwithonly theright to forfeitasthetenantscannotacquire that right.
Alternativelyknownassubletting, thisiswhereatenantgrantsan underlease/subleaseoftheflat to
athirdparty.Most leasesimpose anobligationonthetenant toseek RMC’S/landlord’sconsentbefore grantingsuchanunderleaseandto let thelandlordhavedetailsof the
undertenant.This ismorecommon sincethespateof ‘buy to let’afew yearsago.
U
StAtutOry truSt
Sometimesif thetermsof leases areunworkablethentheymay bevariedsothat thetermsare adjustedtosuit
theparties.The variationmustbewiththeconsent ofboth landlordandtenantand ought tobecontainedinadeed. Thereis alsoaright toapply to theLVTforvariationofspecific provisionsin leasesif theyare completelyunworkable
V teNANt
Anotherwordfor ‘lessee’ or ‘leaseholder’.
W
WAiVer Ofright tOfOrfeit
If tenantsarein arrearsofservice chargeor groundrentandthe RMC/landlordwantstoexercise itsright to forfeit it is vital thatno payments areacceptedfromthe tenant or otherstepstakentoinfer anycontinuationoftheleaseas thismaywaive[orprevent] the right to forfeit.
uNderlettiNg
VAriAtiON OfleASe
SLCsolicitors is an award- winning commerciallaw firm that worksinpartnership with its clients within the litigation, debt recovery andpropertymanagement sectors.Weoffer a wide range of practical and wide- ranginglegal supportona cross-sectionofleasehold andmanagementissues such as debt recovery in relationtoarrears of service charges and ground rents (norecoverynofee andno upfront charges), nuisance, leasehold enfranchisement, righttomanage incorporations,lease extensions andvariations and licences for alterations. Wecan also supplyRMC directors with guidance notes ande-bulletinsthatcover wide-ranging topics relating to propertymanagement, health and safety, insurance, credit controlandmany other topics.Weprovide our servicesnationwide and regularly conducttraining seminars andsurgeriesat ourclients’premisesall around thecountry so that ourclients caneasilygauge ourpeopleand ourexpertise in theareas inwhichweoffer our niche services.
Formoreinformation tel 0845 1700 700 Email:
info@slcsolicitors.com www.slcsolicitors.com
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