Q: Notice of Charge

Q : We, the management company, have been advised that a flat owner is re-mortgaging their flat. The solicitor has asked us to confirm our fee for a Notice of Charge. Our lease only requires the freeholder to require this, not the management company. Would it be sensible for us to, also, require this so that in the event of the leaseholder defaulting on their service charge we could then advise the mortgagor to pay and add to the mortgage of the mortgagee? Is how would we go about it and what would be a reasonable charge please? FPRA Hon consultant Yashmin Mistry replies: Thank you for your email. As you know under the terms of your lease notice of transfer and charge should only be given to the landlord. Accordingly, we cannot advise you to accept a notice and charge a fee for doing the same as if challenged, any Tribunal would hold against the management company. We assume the management company has the responsibility to collect the service charges under the lease? If that is the case, does the management company have an agreement in place with the freeholder whereby the freeholder provide details of any transfer to the management company? if not, it may be worth seeking to put something in place to this effect. [Submitted October 2016]

Q: Notice of Charge

Q : We, the management company, have been advised that a flat owner is re-mortgaging their flat. The solicitor has asked us to confirm our fee for a Notice of Charge. Our lease only requires the freeholder to require this, not the management company. Would it be sensible for us to, also, require this so that in the event of the leaseholder defaulting on their service charge we could then advise the mortgagor to pay and add to the mortgage of the mortgagee? Is how would we go about it and what would be a reasonable charge please? FPRA Hon consultant Yashmin Mistry replies: Thank you for your email. As you know under the terms of your lease notice of transfer and charge should only be given to the landlord. Accordingly, we cannot advise you to accept a notice and charge a fee for doing the same as if challenged, any Tribunal would hold against the management company. We assume the management company has the responsibility to collect the service charges under the lease? If that is the case, does the management company have an agreement in place with the freeholder whereby the freeholder provide details of any transfer to the management company? if not, it may be worth seeking to put something in place to this effect. [Submitted October 2016]

Question 1

Notice of Charge

Accepted Answer

Q: We, the management company, have been advised that a flat owner is re-mortgaging their flat. The solicitor has asked us to confirm our fee for a Notice of Charge. Our lease only requires the freeholder to require this, not the management company. Would it be sensible for us to, also, require this so that in the event of the leaseholder defaulting on their service charge we could then advise the mortgagor to pay and add to the mortgage of the mortgagee? Is how would we go about it and what would be a reasonable charge please? FPRA Hon consultant Yashmin Mistry replies: Thank you for your email. As you know under the terms of your lease notice of transfer and charge should only be given to the landlord. Accordingly, we cannot advise you to accept a notice and charge a fee for doing the same as if challenged, any Tribunal would hold against the management company. We assume the management company has the responsibility to collect the service charges under the lease? If that is the case, does the management company have an agreement in place with the freeholder whereby the freeholder provide details of any transfer to the management company? if not, it may be worth seeking to put something in place to this effect. [Submitted October 2016]

Question 2

Notice of Charge

Accepted Answer

Q: We, the management company, have been advised that a flat owner is re-mortgaging their flat. The solicitor has asked us to confirm our fee for a Notice of Charge. Our lease only requires the freeholder to require this, not the management company. Would it be sensible for us to, also, require this so that in the event of the leaseholder defaulting on their service charge we could then advise the mortgagor to pay and add to the mortgage of the mortgagee? Is how would we go about it and what would be a reasonable charge please? FPRA Hon consultant Yashmin Mistry replies: Thank you for your email. As you know under the terms of your lease notice of transfer and charge should only be given to the landlord. Accordingly, we cannot advise you to accept a notice and charge a fee for doing the same as if challenged, any Tribunal would hold against the management company. We assume the management company has the responsibility to collect the service charges under the lease? If that is the case, does the management company have an agreement in place with the freeholder whereby the freeholder provide details of any transfer to the management company? if not, it may be worth seeking to put something in place to this effect. [Submitted October 2016]

Notice of Charge

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