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Vixus Property Management’s knowledge centre is an area where you can find information and guidance in relation to your property and the management that you can expect to receive. We provide a list of the most frequently used terms and what they mean.

Knowledge Centre

Glossary of property management terms

S20

A Section 20 notice is issued by the landlord to the tenants (leaseholders) for one of two reasons; to notify tenants of their intention to carry out works; or to notify the tenants of their intention to enter into a long-term agreement for services at the property. As a leaseholder, you have the right to be consulted if the landlord carries out major works for which you will be asked to pay. This consultation process has two and sometimes three stages: First stage – a notice of intention to do the works. Second stage – notification of estimates obtained by the landlord. Third stage – where applicable, notification of award of contract

Notice of intention to carry out qualifying works is given to each leaseholder and any recognised tenants’ association RTA, as defined in Section 29, Landlord & Tenant Act 1985. The notice must describe in general terms the proposed works, or specify a place and hours where the description may be inspected. The notice must state the reasons for the works, and invite written observations, specifying where they should be sent, over what period (30 days from the notice), and the end date. Further, the notice must contain an invitation for nominations of persons from whom the manager should obtain estimates. The landlord must have regard to written observations received during the consultation period.

The landlord must seek estimates: 1. from a single nominee of an RTA (whether or not any are received from individual leaseholders); 2. from a single nominee of only one leaseholder (whether or not one is made by an RTA); 3. if single nominations are made by more than one leaseholder (whether or not any are made by an RTA), the landlord must seek an estimate from the person with most nominations, or, if there is no clear leader but there are two or more who tie for first place, from one of those. If the result is not even that clear (for example, there could be five nominees with one vote each), an estimate must be obtained from one of them. If multiple nominations are received from any leaseholder and more than one from the RTA, the landlord must request an estimate from at least one person nominated by a leaseholder and at least one nominated by the RTA

Following stage 1 and 2, you will then be notified of the which contract will be awarded the contract to complete the works.

IRPM

The Institute of Residential Property Management (IRPM) is the professional body for residential property management specialists and provides nationally accredited qualifications, guidance on career pathways and resources, to assist property managers within their roles. IRPM is dedicated to supporting, building, and setting the standards of the profession.

L&T 87

In certain circumstances, where the landlord wishes to dispose of the freehold, under the LTA 1987, it must first offer it to the qualifying tenants in the building. If this offer is not made, there are serious consequences, including, since 1996, criminal sanctions.
Ground rent is something that you’ll need to pay if you live in a leasehold property. It is a payment that a leaseholder makes to the freeholder of a property, essentially paying to rent the land off the freeholder. The amount of ground rent is generally stated in the lease agreement
Someone who owns the Lease on the property who has a Long Lease i.e. one that was originally granted for more than 21 years at a premium and a low annual rent
Someone who owns the Lease on the property who has a Long Lease i.e. one that was originally granted for more than 21 years at a premium and a low annual rent
Someone who owns the Lease on the property who has a Long Lease i.e. one that was originally granted for more than 21 years at a premium and a low annual rent
Ownership of the Block subject to any Leases granted
The person who owns the lease of the property
The contract / agreement between a Lessor and lessee that sets out each parties rights and obligations
A property upon which there is a Lease granted
Someone who owns a lease on a property
A Head Lease sites above the sub leases, which have been granted on individual properties
A Lease that was originally granted for more than 21 years at a premium and a low annual rent
Payments by owners of flats to the Landlord / Managing Agent relative to the services provided to the property, which would or may include items relative to insurance, maintenance / repairs, lighting and cleaning of the common parts and could also include such matters as communal central heating, porterage, lifts, etc
A rent charge is an annual sum paid by a freehold homeowner to a third party who normally has no other interest in the property. A rent charge can also be referred to as a ‘chief rent’. ‘Rent owner’: a person who receives a rent charge payment and has no other legal interests in the properties they collect from.
Money collected from Flat Owners over a period of time to provide for funds needed for future Major Works

A sinking fund is an amount of money which is set aside to cover any major work which is needed on a property in the future. Such funds are quite common with leasehold properties. The fund is usually part of the service charge that is payable by each leaseholder and is normally calculated as a fixed percentage of the service charge which is reviewed on a regular basis. The amount payable is usually then put into an interest bearing account, and the interest accrued is added to the account.

S42

The mechanism used to extend a term on a leasehold property

RICS

RICS is a globally recognised professional body. RICS promote and enforce the highest professional standards in the development and management of land, real estate, construction and infrastructure. RICS also provide a Code of Conduct for residential service charge management.

When selling you property you should try to obtain a management pack from the managing agent or the landlord. Usually the buyer’s solicitor will send questions for the landlord to answer. The pack should show whether the accounts are up to date and any arrears that will be cleared before completion. Another way that this information can be asked is through the LPE form. The Law Society, has put together some standard enquiries to assist the landlords and their managing agents in answering these enquiries called the LPE1 form. These forms are not mandatory but if the landlord and the managing agent are not specifically replying to an LPE1 form, the management pack should deal with all the enquiries provided in the LPE1 form.

M&As

Documents that control and determine the running of the RTM/RMC Company
A fee paid to a property management company for managing a property or estate for an agreed sum of money. This is detailed within your management agreement
The Property Ombudsman’s is a mechanism for disputes raised by either the leaseholder or the freeholder/landlord. It is designed to achieve a full and final settlement of the dispute and all claims made by either party. The Ombudsman can, where appropriate, make compensatory awards in individual cases up to a maximum of £25,000 for actual and quantifiable loss and/or for aggravation, distress and/or inconvenience caused by the actions of an agent.
A person who is elected and responsible for the running of the RTM/RMC Company. A Director is legally required to comply with company and health and safety law
The Directors and Company Secretary of the RTM/RMC Company
As a leaseholder in a property with an RTM company set up, you will be given 1 share, which equates to 1 vote. You are only given 1 share per property, not by how many live within the apartment. For instance, if you own two flats within a block, you will get 2 votes. If you own one property but have two names on the lease, you will only be able to make one vote at any AGM or EGM

A person who is elected and responsible for the administration and compliance of the RTM Company with Company Law. The Company Secretary can also be a Director or the Property Management Company

S84

A notice sent by the Landlord to the RTM Company that either admits that the RTM company is entitled to acquire the RTM or alleges that the RTM Company is not entitled to acquire the Right to Manage

A date that is set at least one month after the Claim Notice (S79) is issued by which time the landlord must serve a Counter-Claim or accept that the RTM will be exercised on the Acquisition Date

S78

A notice sent by the RTM Company to all Qualifying Flat Owners in the Block inviting them to participate in the RTM Company. This can be sent at any time after the RTM Company has been formed but it must be sent prior to the issue of the Claim Notice

S42

It is a company which is usually set up by the originally developer which consists of equal shareholders or members amongst the Leaseholders. The RMC Is therefore responsible for the management and maintenance of the building which they can achieve by either self-managing or by appointing a managing agent.

LRA 02

Act of Parliament which allows Flat Owners to take over the responsibility for the management of their Block

FTT

Resolving disputes relating to various leasehold matters are, in the main, determined by The First-tier Tribunal (also known as the ‘FTT’ who are part of the Residential Property Tribunal Service – formerly known as the Leasehold Valuation Tribunal – LVT) which can be as a result of an application having being made by either the Tenant or the Landlord . There are various offices which cover a specific area of England & the five regional RPTS offices are: RPTS (London Rent Assessment Panel) London. RPTS (Northern Rent Assessment Panel) Manchester RPTS (Midland Rent Assessment Panel) Birmingham RPTS (Eastern Rent Assessment Panel) Cambridge. RPTS (South Eastern Rent Assessment Panel) Chichester. Each FTT usually consists of three members: a lawyer who is often the chairman, a valuer and a lay person. It is entirely independent and impartial in its semi-formal approach & neither side is required to be represented. After listening to the argument from both sides and raising their own questions etc. they determine the issue as soon as possible after the hearing. No decision is normally provided at the hearing itself.
A Landlord that cannot be found. Where a Landlord is ‘absent’ then an application can be made to the First-tier Tribunal for an order enabling the RTM company to acquire the right
Date when the RTM Company takes over the responsibility
Insurer of the Building
The insurance policy that covers the Building

Directors and Officers Insurance – this covers all directors who are part of the RMC or RTM

ARMA

ARMA is the leading trade association for residential leasehold management ARMA was founded in 1991 to bring together professionals involved in private residential block management in areas like; Set high standards in residential block management. Require our members to meet those standards. Provide technical advice and guidance to our members. Produce information and advice notes for leaseholders. Run training courses on the leasehold system. Promote professionalism in property management. Campaign for improvements in relevant legislation and policy

L&T 85

The Land and Tenant Act 1985 defines all the rights and obligations a landlord has to their tenants

S79

A document sent to the Landlord by the RTM Company notifying the Landlord that the RTM Company is exercising the right to acquire the Right to Manage the Block

The aspect of law that governs the way that companies can operate

S82

A notice sent by the RTM Company to the Landlord requesting information. This can be sent any time after the RTM Company has been formed and before the Claim Notice is issued

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