Waqar Ali's blog : PROPERTY BLOCK MANAGEMENT AGENTS AND LEASEHOLDERS RIGHTS

Having established that statutory tenants' rights are critical to the residential block management process, they are also an important consideration for all of the leaseholders affected. Some of these rights are now briefly summarised below.

Leaseholders have specific rights to receive certain information from their landlord or property block management agents including as follows :

· The landlords name and address.

· Property service charges and the right to challenge them

· A summary of costs for the last service charge accounting year

· A summary of tenants' rights and obligations

· Freeholder or block property management agents administration charges

· Receive notice of assignment of the freehold.

· A written summary of the current insurance buildings insurance costs which must be reasonable

· Other tenants rights include various entitlements to

Form a Recognised Tenants' Association challenge their liability for any part of the service charge they feel is unreasonable, vary a lease on certain specific grounds, consultation on certain qualifying works and long term agreements, arrange for a management audit of all the management functions, inspect the insurance policy and to receive information about it, appointment of a manager by a LVT if tenants believe the block is poorly managed or the landlord cannot be found

take over the property management of the block of flats themselves

Right to Manage or RTM - subject to qualifying criteria

leaseholders may appoint block management agents under the Right to Manage (RTM) provisions

apply to the county court to acquire the landlord's interest - only applicable in extreme circumstances where the landlord is in breach of its obligations

enfranchise or extend their lease

first refusal on disposal of a block of flats or freehold

security of tenure at the end of a long tenancy

As you would expect, the above list is subject to conditions exclusions, qualifying criteria and exceptions however it is hoped this will serve as a good point of reference for further reading.

The key to properly addressing the above legislation is to employ the services of a good property block management agent. The RICS Service Charge Residential Block Management London Code sets out what is regarded as best practice for property management agents in the private residential leasehold sector. It also highlights any legislative requirements that block managers need to comply with and adequately covers requirements to comply with the above statutory rights.

The services of any practising managing agents should therefore meet the standards set out in this code. If not, questions should be raised and he leaseholders, landlords, RTM's and freehold property companies might well be concerned.

There are of course always those management agents or freeholders who will simply refuse to take effective action or responsibility for quality standards and are happy to muddle through. Wherever possible you should avoid these firms.

Staff are often poorly trained, not fully aware of codes of practice and standards, and are not always sufficiently qualified or experienced to meet clients' needs.

In instances where leaseholders are intending to apply their rights and wish to pursue some of their entitlements it is essential that the property manager is experienced and well informed. Problems and expensive liabilities can soon arise if these rights are not properly attended to..

Additional information concerning lease management legislation and statutory rights can be found online and through the links in the Resource Box below.

VFM block property management agents is an estate property management company providing residential property management services for blocks of flats, apartments and private estates

VFM's block management service standards are unique in their application and are Regulated by RICS.

For further information and advice regarding the management of residential freehold and leasehold blocks of flats and apartments and associated property estate management activities.

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