Opinion Flat Living whAT The exPeRTs Think
Bob Smytherman
TheFPRAcampaigns tirelesslyonbehalf of flat
owners.Two importantissuesthatthe organisation has focused recently on are the retirement homes sector and insurance commissions
A revised Code of Practice forPrivate RetirementHousing, publishedearlier this year,has beenwelcomedbythe FPRA, althoughwefeel moreneedstobe done to safeguardthewellbeingof leaseholders in this sectorwho, in manycases arebothveryelderly and vulnerable. Oneofourmain objections to
thenewcode is that it doesn’t go farenoughondisclosures of commissions andassociatesto satisfy leaseholders concerns. TheAssociation of Retirement
HousingManagers(ARHM)has undertaken aconsultationwith interested partiesonthe revised code. In response, FPRAVice- chairmanRichardWilliamsmade
the following points: nTransferfeesshouldonlybe appliedwhere thebenefitistothe servicechargeaccountand nottoa remote developerorother partythat
doesn’t benefit the lessee. nWehave repeatedly seen reserve accounts used to paywhatare effectively routineservice charge billssoastoartificially disguise the true situation. There should be a clear obligation to budget forreserve funds and to justify any payment outside of
that budget. nWewouldliketosee aclear recommendation of reservefunds beinginvested tomaximise deposit interest becauseifthe reservefund is used correctlyfor cyclical repairs, then notice periods canbe allowed
for and interestmaximised. nBearinginminddiscrimination legislationand the specific sectorwe areaddressinghere, thereshouldbe an obligation forlarge printorother alternativemeans of communication
appropriate to the audience. nTheconcept of forfeiture andits currentuse needstobeexplained
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better andwewould strongly suggestemphasis onmediationor otherformsof disputeresolution, includingifappropriate,debt
counselling. nWefeel ResidentsAssociations have animportant role to play and whilesomemembers ofARHM actively encouragethem, others do notand somewill do so only if themangers’ownRAconstitution is used.Webelieve theARHM should have alinkonitswebsite andpublicise otheralternatives includingmembership of the FPRA. ThefullFPRAresponsecan be
found on ourwebsite atwww.fpra.
org.uk.Weawaitthe outcomeofthe consultation with interest andhope that our comments and suggestions will be takenintoaccountinthe final codewhen it is published. Continuing on thethemeof
retirement property,wehavebeen greatlysaddened by reportsthat AgeUKistoreducethe levelof advice on leaseholdissues provided by theorganisationatnational level to those seeking help fromits Informationand Advice service. TheFPRAbelievesthiswillgreatly disadvantagemany olderpeople who are experiencing property- relatedproblemsandwhowillnow beunable to contactAgeUKfor advice.Havingwritten to AgeUK voicing our concernswehave been assuredthatits advice servicewill stillbeavailabletoleaseholders at
locallevel.Inaletterreceivedin July,LucyHarmer, AgeUK’sHead of Services confirmed that,“we will stop providing thedetailed caseworknationallywhichwehave previously delivered”.However,she adds“We knowthat this servicewas valued butitwas able to help only asmall number of older people.We have retained sometechnical advice
Contactthe FPRA if your Age UK adviser can’t help
Wehave beengreatly saddenedby reports that AgeUKis to reduce the levelofadvice on leasehold issues provided by the organisation...
nationally and have identified leasehold advice as oneofthe issuesweneed to supportour localadviserswith.”Only timewill tellwhether AgeUK’s new arrangement willwork effectively so do contact us if you feel you are not receiving adequate help or support from your local adviser. During thesummer, theFPRA
has also beenintouch with the FinancialConductAuthority,calling for an investigation into the excessive commissions leaseholders arebeing charged by someelements of the insurancemarket. As aresultweaskedthe FCAearlier
this summer to conductaformal review.However,theyresponded by informing us that the issues around insuring leaseholdproperty fall outside their remit, saying “Arrangements where freeholder ormanaging agents (ascustomers)receive commissions for usingparticularinsurance providers, or for remunerating the freeholder for the cost of insurance using service charges
would...notbesubject to ourrules”. Instead, they recommendour “best course of action”would be to contact HMTreasury or theteamdealing with leaseholdpolicyatthe Department for Communities and Local Government. Weare nowconsidering our next steps butwillcontinuetocampaignon behalf of long leaseholders.●
Bobsmytherman Chairman,TheFederationofPrivateResidents AssociationsLtd
emailbob@fpra.org.uk Gotowww.fpra.org.ukto find out more about theFPRAand itslegal advice service whichis free tomembers.
issue 15 Flat Living
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