Solum Estates

What is a Lease?

A lease is a contract between two parties the lessor (freeholder/landlord/owner) and the lessee (flat/apartment owner/tenant). Sometimes there is an additional party to the lease – a management company. The apartment/flat is let/demised by the lessor to the lessee for a fixed period/term , in return for regular ground rent payments as stated in the lease.

What are a Lessee’s obligations?

The lessee is required to abide by various terms and conditions regarding their apartment/flat as stated in the lease.

What are a Lessor’s obligations?

The lessee is required to abide by various terms and conditions regarding the apartment/flat as stated in the lease. The lease usually requires the lessor to maintain the structure of the building, including all common areas and to insure the building. Where the lease has an additional party (the management company) this responsibility is transferred to that party. These costs are recovered from lessees in form of service charges.

What do Service Charges typically cover?

Service charge typically include provision of on-site staff, where required, payment of insurance, repairs and maintenance, communal utility supplies, maintenance contracts in place at the building, contribution towards a sinking fund and managing agent fees (“Services”).

Why is there a need for a management agent?

As the lessor or management company is legally responsible for performing the Services, it usually appoints a managing agent to assist it in doing so. A Managing Agent takes many of the pressures of running the building/block away from the Lessor/Management Company.

What is RTM company?

RTM company stands for Right To Manage Company set-up by lessees in order to run the affairs of the building/block themselves rather than a lessor. Its similar to a Management Company. RMCs typically appoint a managing agent to perform the day to day functions of running the building/block. The company is run for the benefit of the leaseholders on a not for profit basis, with directors chosen from within the leaseholders of the property (referred to as Resident Directors).

What is RTM?

RTM stands for Right To Manage. Under the Commonhold and Leasehold Reform Act 2002, the Leaseholders of a property have the right to form their own company and take management of the building away from the Freeholder. There are certain conditions that have to be satisfied in order to achieve this. The reasons typically stated for going through the right to manage process are either to reduce service charge and / or to control the appointment of the managing agent.

What is a Management Company?

It’s a limited company which is party to a lease of an apartment/flat. The shareholders/members are the leaseholders and has directors (and sometimes a company secretary). The Company’s documents and the law sets out who can be a shareholder/member and who can be a director of that company.

What is the role of a Company Secretary?

The Company Secretary is responsible for the administration of the company, especially in terms of legal and statutory requirements. The Company Secretary ensures that documents are filed in a timely manner, and kept fully updated, at Companies House. The Company Secretary could be a leaseholder in the property, the managing agent or a specialist firm

What is Section 20 Consultation?

Section 20 Consultation is a form of protection for Lessees. Lessors are required to consult Lessees if any works that are required to be carried out in the building amount to more than £250.00 including VAT per flat, before the amount can be included in the Service Charge. Should consultation not be carried out the maximum Lessors may deduct from the service charge is £250.00 including VAT per flat.

What is Arrears?

Arrears arise when a leaseholder has not paid their Service Charge and Ground Rent on time.

How do you deal with Arrears?

There is usually in place a stringent process of dealing with Arrears.

Do lessees need to get own buildings insurance?

It is usually either the responsibility of the Lessor or the Management Company to take out the buildings insurance for the entire building/block. Premium or a share of it is collected from the lessees. Usually the lease prohibits a lessee taking out own building insurance cover. However it is prudent for lessee to take out an insurance policy to cover the contents of apartment/flat.

Can I keep pets in my apartment?

Check the lease and check with the lessor/management company.

Can I make alterations to my apartment?

Check the lease and check with lessor/management company. It depends on the type of alterations, but in general the rules governing alterations will be clearly laid out in your lease.

How can I raise my concerns?

If you are a lessee your first point of contact to raise any concerns with regards to the welfare or running of the block would be us. who should be there to listen. It is suggested that you send an email to them. You can use the contact link on this website. All emails are usually replied to within 2 working day. If you are tenant who has let the apartment/flat from a lessee you need to contact your letting agent or the lessee from whom you took the apartment/flat.

How do I bring to attention the need to attend to something?

If something needs fixing, repair, attention or work send an email regarding it to the managing agent.

Feedback/Reviews

SA good managing agent should strive to receive all types of feedback/reviews and learn from them. Please do send emails and give true feedback/reviews. If a lessee is happy with level of service charge or is happy with the service provided by the managing agent say so in reviews and feedback