Absent Landlord
|
A
Landlord that cannot be found. Where a Landlord
is 'absent' then an application can be made to
the Leasehold Valuation Tribunal for an order
enabling the RTM company to acquire the right
|
Acquisition Date
|
Date when the RTM Company takes over the
responsibility for managing the Block of Flats
|
Block /
Block of Flats |
Block of flats that is considering forming an
RTM Company to make a claim for RTM. The Block
must satisfy certain criteria in so far as that:
it is self-contained (or if part of another
building, be capable of being redeveloped
independently); it must contain at least two
flats; at least two-thirds of the flats must be
let to "qualifying tenants"; and part of it can
be used for Commercial purposes but the
Non-Residential part must not exceed 25% of the
total floor area
|
Building Insurers
|
Insurer of the Building
|
Buildings Insurance
|
The
insurance policy that covers the Building
|
Claim Dispute Reasons
|
The
only possible reasons that a Landlord can
give in the Counter Claim Notice for disputing
the Claim are whether (a) the Block does not
qualify (b) the RTM Company does not comply with
the legislative requirements; and (c) the
Members do not represent at least half of the
Qualifying Flat Owners in the Block
|
Claim Notice -
Section 79
|
A
document sent to the Landlord by the RTM Company
notifying the Landlord that the RTM Company is
exercising the right to acquire the Right to
Manage the Block
|
Commercial Purposes
|
Part or parts of a Block that are used for non
residential purposes
|
Commonhold and Leasehold Reform Act 2002
|
Act
of Parliament which allows Flat Owners to take
over the responsibility for the management of
their Block
|
|
|
Company Law
|
The
aspect of law that governs the way that
companies can operate
|
Company Secretary
|
A
person who is elected and responsible for the
administration and compliance of the RTM Company
with Company Law. The Company Secretary can
also be a Director
|
Counter Notice -
Section 84 |
A
notice sent by the Landlord to the RTM Company
that either admits that the RTM company is
entitled to acquire the RTM or alleges that the
RTM Company is not entitled to acquire the Right
to Manage
|
Determination Date
|
A
date that is set at least one month after the
Claim Notice (S79) is issued by which time the
landlord must serve a Counter-Claim or accept
that the RTM will be exercised on the
Acquisition Date
|
Director
|
A
person who is elected and responsible for the
running of the RTM Company. A Director is
legally required to comply with company and
health and safety law
|
Duty to Provide Information Notice -
Section 93
|
A
notice sent by the RTM Company to the Landlord
requesting information that will be required for
managing the Block. This can be sent at any time
after the Claim Notice has been issued
|
Financial Obligations
|
Requirements to pay certain amounts on behalf of
the Block such as for insurance, repairs,
maintenance etc
|
Flat Owner
|
The
person who owns the lease of the flat
|
Freehold
|
Ownership of the Block subject to any Leases
granted
|
Head Lessee
|
Ownership of the Head Lease from which the sub
leases have been granted
|
|
|
Landlord
|
The
head Lessor or freeholder of a block
|
Lease
|
The
contract / agreement between a Lessor and lessee
that sets out each parties rights and
obligations
|
Leasehold Property
|
A
property upon which there is a Lease granted
|
Leasehold Reform, Housing and
Urban Development Act 1993
|
Act
of Parliament which provides for certain Lessees
(who meet the necessary qualification criteria)
to acquire a lease extension
|
Leasehold Valuation Tribunal
|
The
government body that determines disputes
regarding matters concerning Leases, service
charge disputes and the management of blocks of
flats
|
Lessee
|
Someone who owns a lease on a property
|
Lessor
|
The
person who owns the Freehold of the building &
granted a Lease
|
Long Lease
|
A
Lease that was originally granted for more than
21 years at a premium and a low annual rent
|
Memorandum and Articles of Association
|
Documents that control and determine the running
of the RTM Company |
Non-Residential
|
Premises (or part thereof) that are not used for
residential purposes
|
|
|
Notice of Invitation to Participate - Section 78
|
A
notice sent by the RTM Company to all Qualifying
Flat Owners in the Block inviting them to
participate in the RTM Company. This can be
sent at anytime after the RTM Company has been
formed but it must be sent prior to the issue of
the Claim Notice
|
Officers
|
The
Directors and Company Secretary of the RTM
Company
|
Qualifying Flat Owner
|
A
Lessee (i.e. someone who owns the Lease on the
flat) who has a Long Lease i.e. one that was
originally granted for more than 21 years at a
premium and a low annual rent
|
Qualifying Tenant
|
A
Lessee (i.e. someone who owns the Lease on the
flat) who has a Long Lease i.e. one that was
originally granted for more than 21 years at a
premium and a low annual rent
|
Qualifying Leaseholder
|
A
Lessee (i.e. someone who owns the Lease on the
flat) who has a Long Lease i.e. one that was
originally granted for more than 21 years at a
premium and a low annual rent
|
Reserve Fund
|
Money collected from Flat Owners over a period
of time to provide for funds needed for future
Major Works
|
Right to Information Notice -
Section 82
|
A
notice sent by the RTM Company to the Landlord
requesting information. This can be sent
anytime after the RTM Company has been formed
and before the Claim Notice is issued
|
Right to Manage
|
The
right for Flat Owners, via an RTM Company, to
take over the management functions of the block
of flats from the Landlord or the Landlord's
appointed Manager
|
RTM Company
|
A
specific type of company (which is entirely
different to a Limited Company) registered with
Companies House that is limited by guarantee, to
take over the management of the Block
|
Self-Contained
|
A
Building or Block that is structurally detached
(or if part of another building, be capable of
being redeveloped independently)
|
Service Charge
|
Payments by owners of flats to the Landlord /
Managing Agent relative to the services provided
to the Block, which would or may include items
relative to insurance, maintenance / repairs,
lighting and cleaning of the common parts and
could also include such matters as communal
central heating, porterage, lifts, etc
|
