Length of Agreement (?)

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    Length of Agreement (?)

    A year ago my wife and I purchased an investment property within a development that comprises some 30 other flats.

    At that time, the development was extremely well managed, with the level of service charges being perfectly reasonable: in short, everyone was happy with the situation.

    Siix months ago, all leaseholders received a letter from the freeholder stating that he had appointed a new managing agent, who shortly afterwards duly took over. From that point onwards the standard of service dramatically fell; unlike the service charges, which virtually doubled.

    On questioning the terms of the new managing agent agreement, we were informed that it was for an initial twelve months. We therefore assumed that the freeholder was exempted from the Qualifying Long Term Agreement regulations and had had no legal requirement to consult with us prior to making the change.

    (There is no recognised residents association at the development, so no requirement to consult on that basis either.)

    We have since obtained a copy of the managing agents agreement, which does indeed state that the agreement is for an initial twelve months. However, it also states that on completion of that twelve months, a minimum notice period of three months must also be given.

    This has caused some debate amongst leaseholders, as some are claiming that the agreement is in reality for fifteen months and as such we should have been consulted under the QLTA regulations. Some of us are not so sure...

    Do any LZ regulars have any advice that they can offer on this interpretation.?

    Many thanks.

    #2
    Why don't the lessees consider collective RTM/RTE? There is no two-year qualifying period for either.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      Length of Agreement (?)

      Many thanks for the reply, Jeffrey.

      Given the nature of the site, I suspect that most of the other owners would not realistically be able to contribute to any RTE. That said, RTM is a different proposition and there seems to be a level of support to now seriously consider that.

      (I forgot to mention that the freeholder is one whose name frequently appears in these forums..!)

      Meanwhile, do you have any opinion on the agreement length issue.?

      Comment


        #4
        By s.20ZA(2) of LTA 1985, inserted by s.151 of the 2002 Act, a QLTA's term is more than twelve months. At exactly twelve months, yours isn't.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment

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