Constitution

IntroductionNavigate within this page

Residential leaseholders in England and Wales have various rights in law to purchase their freeholds, extend their leases and address unsatisfactory management of their properties.

There is a wide range of information and sources of advice to leaseholders from a variety of parties operating in the enfranchisement sector such as government bodies, firms of solicitors, valuers, managing agents, intermediaries/agents and managers of leasehold enfranchisement.

Many leaseholders are confused by the choices available to them and have not had the inclination or perseverance to exercise their rights in conjunction with their neighbours. Some of these parties have recognised this opportunity and established services to assist leaseholders in the management of enfranchisement projects.

ALEP represents these diverse organisations with the following goals:

1. To promote best practice among members through an evolving code of practice.
2. To provide potential clients with details of member organisations with sufficient knowledge, intent and capacity to provide a satisfactory service.
3. To provide an avenue for recourse for dissatisfied clients of member organisations by means of an effective independent complaints procedure.
4. To act as a forum for member organisations for the exchange of ideas and to increase standards throughout the sector.
5. To represent members' interests to government, the press, other associations and the general public.

Code of practiceNavigate within this page

It is a strict condition of membership of ALEP members to accept and undertake to comply with the current Code of Practice.

This code requires members to:

In the interests of clients:

1. Where dealing with private individuals as clients directly, to agree, in writing, the terms of engagement in as detailed a form as is reasonably possible. In particular clarify lines of communication, the fee structure and the categories of other services for which additional fees may be charged, (i.e. "no hidden extras".).
2. Deliver services in accordance with the agreed terms of engagement and in compliance with all current applicable legislation, terms of leases, contract documentation and good business practice.
3. Maintain adequate records of all transactions.
4. Maintain a current insurance policy and/ or practising certificate as approporiate adequately covering the member against proven claims for professional negligence. The minimum monetary value of this policy may be stipulated by the Committee.
5. Disclose to relevant parties any existing conflict of interest or any circumstances that may give rise to a conflict of interest and to declare any interest in any contractor or business employed to provide services in connection with the proposed transaction.
6. Actively and regularly consult the client or the client's leading representatives as per the terms of engagement before taking major decisions on their behalf.
7. Extend a courteous and professional service to freeholders, flat owners and tenants and to other members of the public.
8. Be honest at all times and open and transparent in all dealings and not make false representations.
9. Know and act within limitations and be accountable for any recommended course of action.
10. To make only accurate claims about the skills or experience of the organisation or those working within it.
11. Ensure that the organisation has and operates a formal procedure for dealing with complaints from a client and from any other person.

In the interests of ALEP:

1. Make known and publicise the existence of the Code and provide details of the complaints procedure.
2. Provide adequate training to employees and agents, bringing to their attention the contents of this Code of Practice.
3. Use the logo or design of ALEP strictly in accordance with the guidelines for the use of that material.
4. Not to act in a manner which compromises or impairs, or is likely to compromise or impair the integrity of a member, the reputation of ALEP or the high standards of professional conduct expected of a member.
5. Not to place other members in a position where they might unwittingly breach any part of this Code of Practice.
6. Not to knowingly misrepresent facts or mislead any client or member concerning any aspect of the services they provide.
7. Respect confidential information to which they may in the course of their business become privy.
8. Subject to point 7 (above) to notify ALEP of any matter that might adversely affect the reputation of the industry or the association.

Complaints ProcedureNavigate within this page

The operation of a credible and effective complaints procedure gives clients of member organisations the confidence that they can seek and obtain redress where appropriate.

ALEP members should each publicise their own complaints procedure in accordance with any professional or regulatory obligations that they are under. In addition on enquiry they should also make clear to clients that they have the option to escalate their complaint to ALEP should they feel that they have not obtained sufficient redress.

The procedure for dealing with complaints is to be available in writing and shall be made available to the client and to any member of the public on request.

1. Complaints should be made to the ALEP Complaints Committee within six months of the matter in question.
2. The ALEP Complaints Committee will invite the member to respond.
3. The ALEP Complaints Committee will make its decision. The decision may be to issue a warning, make a finding of 'no fault' or to decide to expel a member from ALEP. The Complaints Committee may take into account a member's previous complaints record when making its decision.
4. If the decision is to expel the member from ALEP, the ALEP Advisory Committee reserves the right to publicise this. The outcome of any complaints procedure will otherwise generally not be made public.
5. There will be a right of appeal from the decision of the Complaints Committee to the Appeal Committee whose decision shall be final.

For the avoidance of doubt the function of the Complaints Committee in dealing with any complaint about a member is simply to make a finding as to whether the member in question has breached the terms of the Code of Practice in dealing with the matter with a view to deciding whether membership should continue. It will not make any finding as to whether the complaint raises other issues such as professional negligence.

The complaints procedure is not intended in any way to remove other avenues of redress that anyone using the services of an ALEP member may have with bodies that regulate the individual activities of members, such as the Solicitors Regulation Authority, The Bar Council or The Royal Institution of Chartered Surveyors.

As ALEP is a not-for-profit organisation it does not have the resources to offer an arbitration service relating to member complaints.

Members' Commitment to the ALEP Complaints Procedure

In addition to their own complaints procedure, ALEP members shall cooperate with staff and any appointees of ALEP's Complaints Committee who:

1. Are investigating a complaint or allegation made against a member.
2. Have sent to the member a written enquiry relating to a member's alleged non-compliance with the Code of Practice.

Membership Criteria and Membership RightsNavigate within this page

In order to become a member of ALEP, an individual or organisation operating in the enfranchisement sector should already have proven experience of leasehold enfranchisement projects. Membership applications are considered by the Executive Committee on a monthly basis.

Where an organisation that has proven experience of leasehold enfranchisement projects holds this by virtue of the skills of one or more individuals and all of those individuals leave that organisation (and are not replaced) the organisation itself will cease to fulfil the criteria for membership of ALEP. In such circumstances the organisation's membership will cease immediately. There is a positive duty on the member organisation to inform ALEP immediately if it no longer qualifies for ALEP membership. Where relevant specialist practitioners have left the existing member organisation may be asked by the Executive Committee to re-submit a membership application together with an appropriate declaration that it still meets the criteria for membership of ALEP.

Where individuals who have the necessary skills and experience move to another organisation, the new organisation may make an application for membership based on the skills and experience of the individuals who have moved to it.

The legal estate and interests of ALEP are held by a company limited by guarantee, the Association of Leasehold Enfranchisement Practitioners Limited (CRN.626300) ("the Company").

The Company is run by its directors in accordance with the provisions of the memorandum and articles of association of the Company ("the Articles") and in accordance with the provisions of company law generally.

The directors have agreed under the terms of the Constitution to be bound by the decisions of the Committee in running the Company in the best interests of the members of the Company.

The directors agree to hold the beneficial interest in the Company on trust for the members from time to time of ALEP.

Membership of ALEP is a contractual benefit provided to members by the Company and arises by virtue of the payment of their membership subscription. In the event of non-payment of the subscription or termination of their membership such contractual rights will cease.

The Committee can terminate rights of membership and reserves the right to do so. In the event of termination of membership rights the Company will take such steps to amend any published list of its members. Any membership fees paid during the year of termination will not be refunded.

In the event that a membership is terminated for whatever reason the former member undertakes to cease use of the ALEP logo and any associated marketing products forthwith and to return any un-used marketing materials to ALEP. Likewise any reference to ALEP on the former member's website or marketing or advertising is to be removed immediately.

For the avoidance of doubt the intellectual property in the ALEP logo and any other materials remains with ALEP and members have a royalty-free licence to use these items for the duration of their membership only.

1. Members

Only members with a valid subscription are able to use the ALEP logo and are able to attend all members' meetings and events. They will have the right to vote at meetings of the members of the Association by analogy with the rights that they would have if they were members of the Company.

Members are organisations with staff, principals or are individual traders who can show at least two years' experience in leasehold enfranchisement. Members who are solicitors, valuers or intermediaries must be able to show that on an annual basis they initiate at least two or more projects enfranchisement totalling at least 20 or more flats (or deal with a similar number of clients by way of lease extension) per year every year and have two satisfactory references from clients relating to significant completed projects.

Members who are barristers will need to show that they have dealt with at least 5 cases at an appropriate level relating to enfranchisement in any given year. These may be by way of matters proceeding to a final hearing in the County Court, Higher Courts, LVT or the Upper Tribunal (Lands Chamber) or by way of paper based advice relating to matters which have settled but which are of a suitable nature to support their application.

In the case of barrister membership this is on a chambers basis. The annual subscription fee will cover up to three named barristers nominated by the chambers. The membership applications for those named individuals will be assessed by the Committee on an individual basis. Additional members of a chambers may be added subject to payment of an additional membership subscription for each additional three names.

Each proposed barrister member will need to provide two supporting references to their application. At least one professional reference will be from an instructing solicitor, the additional reference may be from a surveyor or an instructing solicitor.

Where an organisation no longer has any individuals working within it that would satisfy the criteria for membership, its membership of ALEP will cease. There is a positive duty on the member organisation to inform ALEP if this is the case.

Member CommunicationNavigate within this page

ALEP communicates information to members that is relevant to the industry with a view to promoting knowledge, best practice and communication.

The following communication tools are used:

• Conferences to raise the profile of the sector and improve the professionalism of practitioners. These are open to members and non-members.
• ALEP events such as informal drinks events which allow members to network with other enfranchisement professionals in a relaxed manner.
• Attendance at non-ALEP events such as property exhibitions to raise the profile of ALEP amongst potential clients and to attract members.
• Other activities as deemed appropriate by the Committee.

ManagementNavigate within this page

ALEP is run by its directors, an Advisory Committee, ('the Committee') and an Executive Committee ('the Executive Committee'). The members of the Advisory Committee are elected at a General Meeting of the Association which is normally held annually ('the AGM') and who hold office for a term of 2 years.

1. The Advisory Committee

The Committee is presided over by an Honorary Secretary and has as its President an individual whose expertise and standing in the enfranchisement industry is widely accepted.

Generally only members of ALEP may serve on the Committee, save in exceptional circumstances where an individual of sufficient standing in the field of leasehold reform or a related sector may be asked to serve on the Committee. If this is to be the case the membership will be asked to confirm the appointment at the next AGM.

If during the course of the year, vacancies on the Committee arise, then the Committee may appoint a suitable candidate to fill any such spaces that arise, subject always to any such appointment being ratified at the next AGM.

There are normally two Advisory Committee meetings in any given year.

The composition of the Committee is currently as follows:

• Honorary President
• Honorary Secretary
• Solicitor Representative (x2)
• Valuer Representative (x2)
• Barrister Representative (x1)
• Managing Agent Representative (x1)
• Facilitator Representative (x1)
• Administration and Finance Officer (Non-voting)
• Company Directors
• Company Secretary

The directors may decide during any year of the Company's business to expand or vary the composition of the Committee provided that it is in the best interests of the association as a whole to do so, in which case any such change in the composition will normally be put to a vote of the members for ratification at the next AGM.

Members of the Committee serve in office for a term of two years from the date of their election after which time they must resign and seek re-election at the next AGM. Members of the Committee have an indemnity from the membership of the association in respect of all things done lawfully in the name of the association.

Officers of the Company may also sit on the Committee and may also hold other offices within the association.

2. The Executive Committee

The day to day running of ALEP is dealt with by the Executive Committee.

The Executive Committee consists of the Company directors and a Company secretary. The Executive Committee meets on a monthly basis and each Executive Committee meeting is attended by one visiting member of the Advisory Committee on a rotating basis.

Advisory Committee members who attend the Executive Committee meetings are paid a disturbance allowance as a contribution towards the costs of their attendance. Members of the Executive Committee are entitled to charge for their time and attendances either on a consultancy or on a cross-charging basis.

DirectorsNavigate within this page

The Company currently has four directors; Anna Bailey, Alex Greenslade, Mark Chick and Andrew Pridell.

Under the terms of the Constitution and the Articles the Company the directors agree to have regard to the Constitution and by the decisions of the Committee in deciding how to deal with the Company and its assets.

The directors will look to the Committee to direct them as to how the association is to be run in the best interests of its members.

Power to AmendNavigate within this page

The Company reserves the ultimate right to amend this Constitution and its Articles as it sees fit.

Any amendments to the Constitution will be put to the Committee, although any amendments of substance will normally be put to the membership at the next AGM.

Changes to the Articles of the Company will be put to the Committee prior to adoption.

This Constitution is a statement of intent and is not intended to be a prescriptive legal document. It sets out the framework under which ALEP aims to conduct its business. Any dispute arising as to the construction or interpretation of the Constitution shall be referred to the directors whose decision shall be final.

Regulation and ComplianceNavigate within this page

A complaints panel ("the Complaints Committee") is appointed by the Committee on an annual basis and includes at least one representative from each of the following: a firm of solicitors, a firm of chartered surveyors, a managing agent, and an enfranchisement facilitator. In the event that a complaint is received three members of the Complaints Committee will be selected to deal with this.

In the event of that a complaint or allegation about a member would place one or more members of the Complaints Committee elected to sit on any complaint in a position of actual or perceived conflict of interest then they shall stand down from that committee and another member of the Complaints Committee shall stand in their place. If there are no further members of the Complaints Committee available, then one or more members of the Committee shall stand in their place.

The Complaints Committee and the Appeals Committee shall subject to the following the Complaints Procedure set out in the Constitution adopt such rules and procedure as they think fit in dealing with any complaint.

In the event of an appeal against the decision of the Complaints Committee, the matter will be referred to the Appeals Committee which will comprise 2 members of the Committee who have not dealt with the matter previously. The decision of the appeals committee shall be final.

FundingNavigate within this page

Subscription fees are set by the Committee each year.

Where a member organisation can join under more than one category (e.g. an entity that is both a firm of surveyors and managing agents), the second entity will obtain a reduced subscription in respect of its annual membership which will normally be half the price of a Full Membership.

Where a member organisation has a secondary membership in this way, the member shall have only one vote and there shall be deemed to be only one member of the association for this purpose.

Any events, activities or media produced by ALEP should be self-financing (i.e. there will normally be a charge to attend such events with a discount for ALEP members).

The day to day running of ALEP is currently administered at the offices of Leasehold Solutions who, as founders, have hosted the association to date. Where administrative costs are incurred in the running of ALEP these are charged to the association.

The Committee will set a budget and decide on expenditure in any given year and will lay a set of the Company's accounts before each AGM for review by the members.

Where a member organisation provides services to ALEP, these may be charged for provided that these are contracted for (in advance) on an arm's length basis. Where a member of the Committee or their organisation is involved in the provision of services to ALEP that member shall not take part in any vote or decision taken by the Committee to elect to recommend that the Company purchase such services.

Whilst members of the Committee may be reimbursed for out of pocket expenses incurred in relation to ALEP activities, there is a general understanding that Advisory Committee members may not charge their time for attending Advisory Committee meetings or for attendance at conferences or other events, save if they are contracted to provide services at these or where such attendance forms part of a paid engagement properly contracted for on an arm's length basis with the Company.

Contact DetailsNavigate within this page

Association of Leasehold Enfranchisement Practitioners

Address:
Financial House
14 Barclay Road
Croydon
CR0 1JN

Email: info@alep.org.uk and admin@alep.org.uk
Telephone: 0845 225 2277 (local call rates apply)
Fax: 0845 225 2287
Website: www.alep.org.uk