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The Leasehold Reform - What does it mean?

The objective of the Commonhold and Leasehold Reform Act 2002 was to improve your rights, as a leaseholder, and provide you with a greater degree of control over the way your property is managed.

 

 

Choosing your own Manager

The biggest part of the new Act was to address the abuse suffered by some leaseholders at the hands of their landlord or manager.

Prior to the Act, you were tied to buying management services from your landlord or someone of the landlord's choice. If the management services were particularly bad then the you could apply to the Leasehold Valuation Tribunal (LVT) to appoint a manager of your own choice, but this required you to prove the reasons for wanting to do so.

The new Act introduces the Right to Manage (RTM), which allows you to appoint a manager of your own choice without the need to prove any fault and without the need to go through the lengthy process of the LVT. There is also no requirement to pay any compensation to the landlord or manager.

Greater Choice and Control

Not everyone will want to go to the extent of appointing a new manager - they might simply want more control over, and accountability from, their existing one.

The Act makes additional provisions for you to have access to information, so that you can see whether your estate is being well managed or not.

As a leaseholder you are entitled to:

  • Details about insurance policies

  • Annual accounts that show details of debtors, creditors and bank balances

  • Estate monies held in a separate, designated client account

  • See the documentation, e.g., invoices, that support your accounts

  • Challenge unreasonable fees and service charges

  • Enhanced consultation whenever the estate spends large sums of money

  • Enhanced consultation whenever the estate enters into a long-term contract for maintenance

  • Clearer demands for ground rent and minimum periods to make payment.

How Safe is your Home?

Quite often leaseholders are "bullied" into paying for services that they think are unreasonable, by landlords that threaten to repossess their home.

The new Act gives you greater rights and makes this type of threat void, especially in cases where the service charge is in dispute.

The landlord is not able to take any legal action against you until the LVT has made a determination over the reasonableness of the service charge.

What can Guardian do to Help?

If you are not happy with any aspect of the service that your landlord or manager is providing (or not providing !) then it is highly likely that we will be able to help.

We can offer help and advice to work towards resolving the dispute that you have with your landlord, or we can discuss the possibility of Guardian undertaking the management of your estate.

Guardian has a team of experienced leasehold managers that you can talk with, but in the first instance you should contact :

Richard Wheeldon by telephone on 01274 381 620

or by e-mail by clicking here

or by using the Management Enquiry Form on this website.

 

RELATED LINKS
Changing your Manager | Wyre Mews case study

Guardian - quality leasehold properties from Anchor Trust


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