Managing the Mansion

Leaseholders of flats have had the right, for many years, to be consulted about major works and to challenge service charges where the costs have not been reasonably incurred, or they relate to works or services which are not carried out to a reasonable standard. They have also had the right to form residents associations and be consulted about the appointment of managing agents. Over the last twelve months, leaseholders’ protection has been extended. The consultation rules that landlords must observe have been expanded both as to their scope (covering long term contracts as well as major works) and the consultation procedures. Instead of forming a residents association, the leaseholders can in most cases set up a company to take over the management of the building. This applies where at least two-thirds of the number of flats in the building have been sold on long leases and the lessees of at least half of the total number of flats in the building agree to participate.

For further information, please contact:

Philip Freedman, CBE
Tel +44 (0)20 7440 7018
philip.freedman@mishcon.com