09 November 2009
Brett Williams is chairman of the Association of Residential Managing Agents (ARMA) and he addressed a group of more than 100 at the autumn conference of the Association of Leasehold Enfranchisement Practitioners on 20 October 2009 at the prestigious International Coffee Organization, 22 Berners Street, London W1T 3DD.
Traditionally flat owners have consulted their managing agents – the companies who are contracted to look after the shared parts in and around blocks of flats – and many agents have attempted to conduct the process themselves. However, Mr Williams acknowledged that there are many pitfalls for the unwary managing agent and that flat owners are usually better served by collaboration with local solicitors and surveyors.
Honorary Secretary of ALEP Alex Greenslade welcomed Brett Williams’ rallying call: “Managing agents have regular contact with their clients, the flat owners, and are in a great position to explain the importance of extending their leases at the right time”. Mr Greenslade noted that many blocks of flats built in the 1970s are now getting close to the 80-year threshold. When a lease drops below this number of unexpired years, it becomes very much more expensive to extend a lease than at 81 years.
The conference hosted over 100 specialists in the field of leasehold enfranchisement who are seeing a steady increase in enquires about freehold acquisition and lease extensions, as the property slump begins to abate.
The conference included a syndicate session entitled 'Is Right to Manage Really the Cheap and Easy Solution?', looking at the process of exercising the ‘Right to Manage’ compared with lease extensions/freehold acquisition. While the syndicate noted that ever more blocks of flats are opting for RTM because it costs less, many are finding it less good value for money because it does not solve many other challenges associated with managing a block.
The other syndicate session was a technical one discussing the value of the new relativity graphs provided by the Royal Institute of Chartered Surveyors. The participants suggested that it will take some time before their usefulness in establishing benchmarks for short lease values as a proportion of long length lease values is proven pending the reaction of Leasehold Valuation Tribunals when they are used in live cases. It was agreed they are more informative than definitive.
The second of the two keynote speakers, Edward Denehan, a respected barrister in the sector, examined the vexed issue of what is a house! To the layperson this may seem a redundant issue. However, a series of interactive votes with the conference members revealed considerable confusion as to which formats of buildings may be regarded as ‘houses’. Increasingly precedents and changes to the law have brought ever more dwellings – including central London offices in converted houses – under the scope of leasehold enfranchisement. The process was only intended for residential dwellings, but it is no longer even required that owners live in their flats in order to be able to compel the freeholder to sell the freehold.
Available on request:
- detailed report from syndicates
- copies of slides used by keynote speaker (including results of voting)
- images of speakers and delegates
- regulatory background
- interview with ALEP
BACKGROUND TO ALEP
Members of ALEP have proved that they have been involved in successful enfranchisement projects, they have the appropriate insurance and accreditations and agree to sign up to a set of standards and principles. ALEP has a strict code of practice and clear disciplinary procedure and will remove any member found to be in default.
ALEP undertakes a lobbying role and is a single port of call for media and others interested in understanding the present and future state of leasehold enfranchisement. It is the only cross-disciplinary membership body that represents professionals in the sector.
Notes to editors
Details on the legislation are available upon request.
Contact Mark Curtis at info@alep.org.uk or 0845 225 2277.
More information is available at www.alep.org.uk
