Post by VFM Property Management
Freehold and leasehold residential property block management for apartment blocks is a specialist area and accounts for a huge proportion of property in England and Wales. If affects freehold and leasehold estates of all varieties and sizes and is as a result crucial to all concerned. The effects of legislation are arguably far more pronounced across London and the South East where development of new apartment blocks, redevelopment of existing properties and conversions has been prevalent in recent years.
If you are reading this you may possibly nicely be a leaseholder, freeholder, landlord or you may possibly merely have an interest in property management or the running of your estate.
It is commonplace for a management agent to be appointed by the freeholder to look following the management of the freehold property. This element of the property generally comprising the structure and fabric of the buildings, the common places, stairwells, gardens, car parking facilities, driveways and boundary walls and perimeters or curtilage.
In turn, the leasehold interests are the responsibility of each of the flat owners who are generally liable for searching right after the internal aspects of the individual flats within the boundaries of their demise but not the shared facilities within the development.
To explain much more fully, you ought to be aware that ownership of flats in England and Wales generally comprises of a leasehold interest which covers each of the demised premises or apartments. This is supplemented by a corresponding freehold interest which consists of the ownership of the primary developing structure and grounds, shared facilities and typical areas.
Provision of, and rights to use of the shared freehold property are clearly essential to allow leaseholders to be in a position to purchase and get pleasure from the efficient use of every of the individual flats. These rights, responsibilities and obligations are set out in a property lease which is drawn up to make sure that the freeholder and leaseholder are in agreement as to their responsibilities and rights concerning the property. The lease therefore also contains for reasonable terms covering the operating and use of the property as a whole and any restrictions or limitations which are to apply.
The lease runs for a set term and provides that rental or ground rent will be payable to the freeholder throughout the term of the lease. In impact the leaseholder never really owns the flat or apartment outright with each of the individual properties being held on a lengthy term lease, typically for a hundred years or far more at the outset.
In addition to the lease itself, leaseholders also have the benefit of further protection provided by statutory legislation exactly where the current law now requires that leases ought to meet certain minimum standards to be fair and reasonable in today’s society. This legislation implies that particular terms under older lease agreements will be unenforceable.
It is also really widespread these days that some flat owners will team up with their fellow leaseholders to form their own freehold management company which in turn will obtain, own and manage the freehold interest and the property.
In these circumstances each leaseholder will own a share in the freehold management company and each can be referred to as a freeholder, as well as getting a leaseholder which can be confusing. Furthermore each and every of the freeholders and leaseholders under this arrangement will nonetheless be bound by the terms of the lease, albeit that ground rent will no longer be a consideration.
Service charge financial contributions for upkeep of the building ought to nevertheless continue to be paid by each and every lessee as prescribed in the lease. This in turn offers funds to enable the freehold management business to meet its obligations for insuring, maintaining and managing the freehold property.
In summary it is nonetheless necessary that the lease must continue to operate as this gives the individual flat owners specific rights to take pleasure in their houses, protecting them from nuisance, and other do’s and don’ts for the use of their property.
Likewise the landlord or freeholder should continue with its responsibilities for the upkeep and upkeep of the constructing and the administration of the funds required from the leaseholders to carry out these duties.
Further reading is available on line at Project Management or Freehold Block ManagementGood luck with picking your property block management agents.
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