General
It is standard practice for tenants to apply for a ‘Licence for Alterations’ when you wish to carry out improvements or other major works to the premises during the term of your lease. Whilst structural alterations are usually prohibited, non-structural alterations are normally acceptable, subject to the landlord’s consent. Landlords must carefully consider all applications to ensure that any alterations do not have a negative impact on the value or safety of the property.
It can differ with every case because of the varied nature of each application, but each application is judged solely on its own merits. The primary point of reference is the alteration covenant contained within your lease. Tenants should be aware that the application process can prove to be quite lengthy.
Unfortunately this is one of the perils of being a leaseholder. We understand that some works may have been completed prior to your ownership of the property. However, this does not negate your liability to obtain retrospective consent for the alteration. Such consent is a formal requirement under the terms of your lease and as successor in title you are bound by the covenants therein.
Every lease extension is different so the cost can’t be determined without an individual valuation for your property. There is a valuation fee of £600.00 which is due upon completion.
Following your initial enquiry we will generate your offer within 3 to 5 working days. Once we have received your confirmation of acceptance our solicitor will aim to get the lease extension completed within 4 to 6 weeks.
Valuing lease extensions is an extremely complicated process. Although comprised of many variables the main factors that influence the cost of a lease extension are as follows: the remaining lease length, the amount of ground rent and the value of the property.
The lease extension offer will be made up of three main parts; the premium for the lease extension, a revised Ground Rent, and the new lease term. Each part of the offer will contribute to the overall value of the lease extension.
Your solicitor will need to contact our Pre-Sales Enquiries Team for a Solicitors Information Pack by sending us an email to: [email protected].
The LPE1 costs £495.00.
Once your fee has been processed your pack will be dispatched within 10 to 14 days. Alternatively you could request our premium service at an added cost, in which case your pack will arrive within 3 to 5 working days.
Property maintenance
The freeholder is the person who owns the main fabric of the building along with the common parts. the freeholder has the lasting interest in the property whereas the leaseholder will only own the flat for a set number of years.
You are a leaseholder in as much as you own the lease to your flat.
The lease is essentially a contract between you and the freeholder. The freeholder agrees for you to own the flat for a set number of years in return for an annual ground rent. When you sell the flat a new lease is not signed, instead the benefit of the old lease is registered in the new owner’s name.
We can supply you with a copy of your lease for a fee of £75.00.
This is the term used to describe the parts of the property owned by you. It will normally detail the boundaries of your flat i.e. one half of the ceiling, the windows.
Common parts are the areas of the building which belong to the freeholder but are accessible to leaseholders i.e. common staircases, landings or communal gardens.
Service charges are the monies you pay towards the upkeep of the property. In most instances your property will be managed by a Managing Agent who will draw up a budget at the beginning of the year detailing what services are required for the property i.e. cleaning, gardening etc. These figures are merely an informed prediction and are susceptible to change, but it gives the Managing Agent a pot of money to organise works as an when they are required. At the end of the year the accounts will detail what was collected and spent and detail whether you are due a refund or whether you need to pay a balancing charge (a top up fee).
If the repair is within the flat then it is your responsibility to organise the works, just as it would be if you owned a house. If the repair is to the main structure of the building then contact your Managing Agent or whomever you pay your service charges to. If you do not pay a service charge and a repair is required to the common parts then please contact Acme Developments for assistance.
If the flat above you is causing a leak the first thing you should do is try to make contact with the owners or tenants to get the leak stopped. If you cannot get hold of them please contact ACME Developments (UK) Ltd.
Insurance
Your premium is based on the Building Declared Value and varied by such things as area, previous claims history, age of the property and type of construction.
As soon as your dedicated claims handler has checked that your claim is covered by your policy, they will get the process moving. Straightforward claims are normally settled very quickly, and in all cases they will keep you informed of their progress.
Standard property insurance policies do not cover damage caused by acts of war or terrorist attacks. While such events are thankfully rare in the UK, there is a continual and increased threat. If your property was to be damaged or destroyed by an act of terrorism and was not insured for this eventuality, you would have to pay for the reconstruction. This additional level of cover is very often a requirement of your mortgage company.
Public Liability cover (or Property Owners Liability cover as it is also known) is provided to cover injury or death to third parties or damage to third party property occurring at your property. It is necessary for the person making any such claim to prove negligence.
Buildings Declared Value is the total cost to rebuild the property (including all fixtures and fittings, car parks, pavements and similar property for which you are responsible) at the start date of your policy. It also includes an allowance for professional fees and debris removal costs. Most importantly, the Declared Value is not the value of your property as you would see in an Estate Agents window. This total value will include the value of the land as well as the property built on. The insurance policy automatically adds a Day One Uplift to your Buildings Declared Value to protect against the increased cost of reinstating your property in the event of a loss. This new enhanced value is called a Building Sum Insured and is also shown on your Certificate of Insurance.
If there is a large risk of flooding or subsidence it is very likely that you will need to pay more for your insurance. The cost depends on exactly where you live and the cover you require. The risk will be assessed by Insurers and an accurate premium will be calculated.
The amount you have to pay towards each agreed claim. Most insurance policies have an excess which is payable by you in the event of a claim being made on the policy. If the claim has been caused by another resident then you may seek to recover the excess from them; this is a matter between you and the other party. If the claim relates to a communal area then you should speak to your Managing Agent regarding payment of the excess.