The Landlord & Tenant Acts of 1985 and 1987, the Housing and Urban Development Act of 1993 and, more recently, the Amendments to the Housing Act of 1996, have each added security of tenure to leaseholders.
Leaseholders can now acquire their freeholds, they can extend their leases, they can apply to the LVTs to either set aside or amend service charge demands and, if necessary, seek for the LVT to appoint a differing managing entity.
If the LVTs adjudication, on the reasonableness of any service charge demand, falls in favour of the landlord, that landlord has no remedy for charging interest on those reasonably requested outstanding demands, or any ability to recover costs for defending the call for the adjudication.
Whilst the lessees’ obligations to pay service charge demands are suspended from the inception of the adjudication process and the duration of that process to its findings, the landlords’ obligations, as covenanted in the lease, have to be performed at the landlords’ cost.
In the course of building up the leading brokerage for ground rent investors in the United Kingdom, we have frequently been asked to advise on:
As the whole landlord-tenant-building relationship becomes more bogged down in statutory and covenanted obligations, with each new phase seeming to assist the lessee in withholding or delaying payment of service charge demands, landlords are facing an increasing mountain of paperwork and the underwriting of debt.
The grb are often approached by landlords who are not geared up to deal with the competitiveness of modern management systems, to dispose of their assets, often precipitated by a huge arrears situation. Many of these landlords now retain their portfolio, engaging those modern management systems, from which they receive an income whilst benefiting from the growth of their reversionary asset. Through the very nature of their business the grb have given advice to a huge number of landlords on this issue.
If you wish to explore the likely results of maximising the benefits of all income streams utilising modern management systems on your assets then please give us a call on 01277 365353 or e-mail firstname.lastname@example.org
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