It is a requirement under Section 20 of the Landlord and Tenant Act that if any particular works are to be carried out to the building which may cost any one flat more than £250.00 (inc. VAT), a consultation process is followed. This is typically a two-part process – though it can sometimes be a three-part process – but it always starts with the Managing Agent sending a Stage One - Notice of Intention on behalf of the Freehold. This advises the contributing lessees of the work that needs to be carried out and provides them the opportunity to comment on this within 30 days and put forward a potential contractor for consideration. The second part involves the Managing Agent issuing a Stage Two - Statement of Estimates which details the quotes and again gives the contributing lessees another 30 day opportunity to comment on the works and inspect the quotations. Sometimes, this goes to a third stage with a notice issued by the Managing Agent if the cheapest contractor is NOT selected, explaining the reasons why. It is also very important to note that for the Section 20 process to be triggered, any particular flat which likely to have to pay more than £250.00 (inc. VAT) rather than there being a blanket fee of £250.00 (inc. VAT) per flat.

A Residential Block Manager (or ‘Managing Agent’) is responsible for the preservation and enhancement of the operational success of residential real estate. A managing agent is required to manage the day-to-day operations of the block to ensure that all communal facilities and amenities are in good working order. A Residential Block Manager must also identify ongoing opportunities for improvement as well as ensuring paramount building safety and sound financial management to ensure funds are in place and collected on time for the maintenance and upkeep of the blocks in question.

The Commonhold and Leasehold Reform Act 2002 introduced The Right to Manage (RTM). It gives leaseholders the statutory right to take over the management of their property from the landlord by setting up their own company known as a Right To Manage Company. It’s only available to leaseholders of flats who DO NOT own a share of the freehold. This is not available to leasehold houses. Right to Manage Companies can either manage the building themselves or appoint a professional managing agent to look after the premises on their behalf.

Your service charge payment covers the necessary services that will be supplied to the common areas of the property as set out in your lease, over a 12 month period. This can include communal lights, all relevant insurances, cleaning, gardening, health and safety checks and management fees. Generally, this will not include any costs for the interior of your personal property unless you have a communal heating system. A budget is issued at the beginning of the accounting period / demand cycle which is adhered to as close as possible (circumstance permitting) and accounts are produced at the end of the year for the leaseholders' attention.

A reserve fund contribution is a fee payable by the owners of the flats to ensure there is sufficient money available for future scheduled major works, such as internal and external decoration.

Leaseholders' are bound by their leases to pay the service charges and ground rent promptly. Lack of payment and/or late payment does delay works being carried out as we work within budgets and funds available. If services charges are not paid, the freeholder/agent can begin forfeiture proceedings. This can lead to the landlord repossessing the flat. However, under the Commonhold and Leasehold Reform Act 2002, the right of the landlord will be restricted.

The company secretary undertakes a range of legal, administrative and filing responsibilities on behalf of the RMC and the role is often delegated to the appointed bock manager. Legal duties include maintaining the existence of the RMC by establishing the registered office, keeping the statutory books and records, and ensuring the security of all documents. Administrative duties include taking responsibility for chairing director and shareholder meetings and ensuring proceedings are recorded through formal minutes approved and signed by the chairman. Filing duties include submission of the annual confirmation statement and company accounts to Companies House within strict reporting deadlines to avoid any late penalties, prosecution and fines.

Your statement of account will always be available to view on the Pont & Lyall leaseholder portal. Your manager will give you access to this portal through an invitation to create an account. After this has been successfully done, you will be able to keep track of all things related to your service charge demands and payments with the dates and original copies of the demands incase you can't find them anywhere for any reason. The portal is designed to provide ease and convenience.

Site visits are very important to ensure the health the building is always up to scratch. Please be advised that blocks are aimed to be visited on a monthly basis.

Frequently Asked Questions