Below are some FAQ (Frequently Asked Questions). If you have other questions or need advice please use the contact us.
What is a freeholder?
The freeholder is the owner of the land that the property is built on.
What is ground rent?
The owner of the land that apartment are built on allow the use of the land on the basis of granting a long lease, in return this gives the owner the right to make a rental charge called ground rent.
What is a Management Company?
A Management Company is a company limited by share or guarantee whose members are residents of a development. These companies are run by Directors elected from amongst the residents who in turn usually appoint Managing Agents to administer the company and manage the developments. This is where FMS come in.
What is a service charge?
A service charge is a sum payable by the owner of the apartment to cover the costs of insuring and maintaining the common parts of a development, lighting insurance etc
Why is there usually one insurance policy for all of the apartments and development?
It is better to have a block policy that covers every apartment because if it was left to individual apartment owners to insure their own property and one apartment was uninsured this would create serious problems for the adjoining properties. It would also be extremely confusing and cumbersome settling an insurance claim where there are a number of insurers involved.
If I am not happy with my Managing Agent can I sack them?
All leaseholders have rights concerning management of their property. If the Managing Agents are appointed by the freeholder the latter should take into account your views concerning the choice of agents. The formal process for insisting that a freeholder changes agents is laid down in statute and we would be pleased to provide advice and guidance in relation to this. If the agent is appointed by the Management Company there is usually the opportunity for leaseholders to make their views known to Directors for the Management Company either informally or at the Annual General Meeting.
Can I buy the freehold of my development?
The law provides a legal framework to allow a group of residents to purchase their own freehold. However before embarking on this it is sensible to obtain specialist advice on the acquisition process and the value of the freehold.