Question 1

Lease variation to provide for RMC administration fee

Accepted Answer

We are a RMC running our own block. Our problem is that our leases do not provide for an income to offset the Company’s administrative and legal costs of managing the service charge account, which is held in a ‘Trust Account’. Could we change the leases to allow us to collect a management fee? The FPRA replies: Yes, tenants may wish to consider varying the leases to take into account these additional charges. A specialist solicitor should be consulted but in general terms, leases can be varied in one of two ways: (i) by consent of all the parties or (ii) by making an application to the Leasehold Valuation Tribunal. FPRA have a booklet entitled, “Lease Variations” which provides some useful information you may wish to consider, this costs £10 including P & P

Question 2

Lease variation to provide for RMC administration fee

Accepted Answer

We are a RMC running our own block. Our problem is that our leases do not provide for an income to offset the Company’s administrative and legal costs of managing the service charge account, which is held in a ‘Trust Account’. Could we change the leases to allow us to collect a management fee? The FPRA replies: Yes, tenants may wish to consider varying the leases to take into account these additional charges. A specialist solicitor should be consulted but in general terms, leases can be varied in one of two ways: (i) by consent of all the parties or (ii) by making an application to the Leasehold Valuation Tribunal. FPRA have a booklet entitled, “Lease Variations” which provides some useful information you may wish to consider, this costs £10 including P & P

Lease variation to provide for RMC administration fee

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