Question - Why can a flat not be freehold?
Answer - Flats are constructed with one dwelling above another, it is not possible for the owner of each flat to also own the ground that the flats stand on.
Question - What is a freeholder?
Answer - The freeholder owns the ground that the flat stands on.
Question - What is ground rent?
Answer - The owner of the land that the flat stands upon will allow the use of the land on the basis of granting a long lease, in return this usually gives the right to make a rental charge called ground rent.
Question - What is a Management Company?
Answer - A Management Company is a company limited by share or guarantee whose members are residents of a development. Companies run by Directors elected from amongst the residents who in turn usually appoint Managing Agents to administer the company and manage the developments.
Question - What is a service charge?
Answer - A service charge is a sum payable by the owner of the property to cover costs of insuring the development and maintaining the communal areas.
Question - Why is there usually one insurance policy for all of the flats and development?
Answer - It is better to have a block policy that covers every flat because if it was left to individual flat owners to insure their own property and one flat was uninsured, this would create serious problems for the adjoining properties. It would also be extremely confusing and time consuming.
Question - I am not happy with my Managing Agent - can I change them?
Answer - All leaseholders have rights concerning management of their property. If the managing agents are appointed by the freeholder, the freeholder should take into account your views concerning the choice of agents. The formal process for insisting that a freeholder changes agents is laid down in statute. Guardian would be pleased to provide advice and guidance in relation to this. If the agent is appointed by the management company, there is usually the opportunity for leaseholders to make their views known to the management company Directors either formally or at the annual general meeting.
Question - Can I buy the freehold of my development?
Answer - The law provides a legal framework to allow all groups of resisdents to purchase their own freehold. However before embarking on this it is sensible to obtain specialist advice on the acquisition process and the value of the freehold. Guardian have the expertise to assist in this area.
Question - If I am selling the property, do I have to pay the charges in full?
Answer - Yes; you should pay all of the charges due on the property prior to any sale taking place. To protect the purchaser's interests, their solicitor must establish that there are no debts outstanding on the property. Part of the usual pre-sale enquiries that solicitor's make, is to ask if there are charges due or outstanding against the property. If you have not paid in full it will, in most cases, delay completion of the sale of your property. Your own solicitor will apportion any money due back to you in the final completion statement.
