Watchdog - Property Management

Property solicitor Steve Nicholson talks about the pitfalls for leaseholders, and what signs prospective buyers should look out for, while leasehold expert Kat Callo explains how people can take over the management of their property.

Anyone who owns a flat or lives on a private estate will most likely have to pay, as a leaseholder, an annual fee to cover the costs for the day-to-day running and upkeep of the building.

This will either be to the freeholder, or a property management company that the freehold has employed to act as their agent.

The amount the leaseholder will pay for this varies according to the size, age and location of their flat. A fee of around £500 per flat is likely - and there may be additional charges on top of that for major repair or redecoration.

The service leaseholders can expect to get for their money, however, varies according to the efficiency and standards of whoever's in charge of the collective purse strings.

Unfortunately, the service can often fall well below satisfactory, as we've seen this Watchdog series. Watch the reports here.

Taking matters into your own hands

Fortunately it's possible, for those who want to, to take control back from the property management companies.

Leaseholders in a block of flats having problems with their freeholder can form a residents' association, part-own the freehold and/ or manage their block themselves.

The Federation of Private Residents' Association (FPRA) is a not-for-profit advice, support and lobbying organisation for private residential leaseholders, tenants' and residents' associations, and residential management companies.

It offers specialist legal, insurance, management, and building guidance to its members, who pay an annual subscription fee.

Chairman Bob Smytheran feels the time could not be more right for people buying a leasehold property to expect to get a minimum standard from whoever's running their building or property.

He told Watchdog: "It's very important for people to collectively stand up to their rights rather than accept the fact that if you move into leasehold flat your landlord or management agent will dominate you. Instead, flat owners together can feel collectively empowered to take charge of their own affairs and the money they're paying, in order to get the service they want."

Tips for setting up a residents' association:

• Talk to everyone in your block or area. Find out if they would be interested in being a member.
• Some may not wish to join but don't be put off. You don't need everyone involved for an association to be successful, and people may change their minds once they see progress being made and events taking place.
• Speak to other associations in your local area to benefit from their experience.
• Get in contact with your council and see if they can offer any help.




Leasehold Valuation Tribunals

If you're having problems negotiating with your freeholder, a Leasehold Valuation Tribunal (LVT) may be the answer. They can settle most financial disputes and may also be able to sort out disagreements about the quality of services provided.

It's a completely independent decision making service, which can decide the reasonable amount you have to pay the freeholder for services or repairs. If your building is being managed badly, you can ask the LVT to appoint a manager. The freeholder would still own the property but would lose the right to manage it. The LVT can't usually force the freeholder to refund any money already paid or order them to pay legal costs, so if you've problems like these you'll need to seek professional legal advice.

The Leasehold Advisory Service has further information, including how to apply.