knoW your lease


form,(ie, withoutabalance sheetshowing thereservesfunds foreachservice charge schedule)are notworth thepaper they are


printedon; nIf you buy into a Right ToManage (RTM) block, you’dbettercheck howmanymembers are left before you become a RTMmember else you might be left holding the baby; Anothermajor issue forleaseholders -and


oneofwhichmany flatownersare completely unaware-isthe ‘repairs timebomb’. Blocks of flats with inadequatereservesornoneatall andthathavemissed redecorationsrequired under the lease, could find themselves in troubleasdilapidations (keepinrepair) clauses becomemoresevereand costly.


ProblemleAses Leaseholdisacomplex andoften


misunderstood form of property tenure. Leases arenot standard –theyare as different as theflatstheyapply to and this iswhythere is astrongneed for


comprehensiveinformation to be available to homebuyers. However, ignorance of theimportanceoftakingthe right professional advice fromthestart of the flatbuyingprocessisnot theonlyproblem. Theindustryneedslegislation to give the LeaseholdValuation Tribunal greaterpowers to varyleases.Currently theTribunalonly haspowerstovaryleaseswherethere is no adequateprovision forthe servicecharge.


has powers to var


WhatyouneedtoknoW Askingthe


rightquestions Thesethings mightseem


obvious but they are important to potential flatowners.Before you buy your flat, don’t forget to ask your conveyancing solicitor for answers to these questions: nHowlong is the lease? nHowmuch will the service charge be?


nWhat are the


arrangements fordealing with household refuse and recycling?


nDoes the lease include a designated car parking space?


nIs thereacycle storeor provision for storing other bulky items?


nIs there a lift? nCan you keep a pet?


nHowwell sound proofed are the flats and is there a ‘keep carpeted’ clause?


nHowispostdelivered,ietoa communal post box or individual post boxes?


nWhat happens about parcel/ courier delivieries?


nWhat activities are allowed in communal areas inside and outside the block?


Nodoubt you will have your Flat Living Autumn2012


Make a checklistof questions to ask


TheTribunalhas no powertodealwith leaseswhichprovide forservice charges in a


wholly unworkable way. Examples include: n leases with no reserve fund; n leaseswhich do not provide for a


professionalmanaging agent to beemployed; n leaseswhichdonot providefor independent


service charge accounts to be produced (even though this is contrary to theRICSCodeof


Practice); n leaseswhereevenafter afreeholdpurchase


seek advice from areputable, experienced solicitor


leaseholders can’tget ridofamanagingagent who has been ‘written into the lease’; n leaseswherethe blockisunder ‘resident control’ butthe leasestill expects thelandlord to payupthenrecover servicecharges at the endofthe year –justwho does thegovernment think the newbanker is?;


n leases with no decorationsclauses; n leases silent onwhoseresponsibility balconies and roof terraces are;


n leaseswhichexpectthe lessee to decorate


their own windows, 10 floors up! Imagine howupsetting it would be to buy


thefreeholdofyourblock andthenfind out that you can’tmanage it, as that right is given toamanagingagent that youdid notchoose for 99 years! Or,whatifthe RightToManage(RTM)


legislation won’t help you because there’s a carparkunderneathyourpropertywhich is shared with otherusers.Oryou have 85%of owners signed up to a petition but you can’t get ridofthe currentmanagementarrangements. Howcan this be fair -surelyitwas notmeant to be this way? Then there’s the problemin someresident-


controlled blocks of leaseholderselfinterest. Wehave comeacross leaseholders cancelling or refunding reserve funds because they know they wanttosellupand even freehold or management companydirectors decorating theirelevation only,thenselling up. Thebest waytoavoid theseand lots of


otherpotential problems,istounderstandthe termsofyourlease andtobeawareofyour rights andobligationsasaleaseholder. If you seek advice fromareputable,experienced solicitorwithknowledge of theleasehold sector, he or she should be able to help you throughthe complexities of your leasebefore you buy.●


Mary-AnneBowring ismanagingdirector, Professional Services Division, RingleyChartered Surveyors


own questions about the block you are planning tomove into. Make alistandwork through anyqueries with your solicitor, ensuring that you are given the information that you need before you buy.


the legAl view As reported in the last issue of Flat Living, theDevon


andSomersetLawSociety (DASLS) has recently updated its Enquiries before Contract Formformanaging agents and freeholders for use in leasehold conveyencing. Chair ofDASLS’ non-contentious business committee PatriciaDurham Hall explainsthatthe formis copyrighted toDASLS- one of the five largest lawsocieties in the country - but is freely available to conveyancing solicitorswherever they arelocated.The aim of thequestionnaire,approved by ARMA, is to provide a standard formfor solicitors to usewhen takingapurchaserthrough theflat buying process. If fully completed, the formis designed to provideall theinformation needed tomake an informed decision and complete the buying process.


Leasehold


conveyancing is acomplex business


Patricia explains that it takes


much longer for a solicitor to preparealeasehold purchase (or sale) than a freehold property, often distressing clients,who find this difficult to understand. The reason for this is because of the additional complexity of the title in a leasehold property and dealing withmanaging agents, freeholders and often management/residential managementcompanies, plus the legal requirements of the lease. TheDASLSformwill be


updatedregularly andisavailable on theDASLSwebsite atwww. dasls.com


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