Glossary

ARMA: The Association of Residential Managing Agents. Not a governing body, but the closest thing the sector has. Agents registered with ARMA have to follow a set of guidelines which help to ensure a quality service and protect leaseholders.

Assignment: The sale of a lease to another person.

Block: The building in which properties are located.

Breach: When a covenant set out in a lease or transfer is broken.

Common parts: The areas on a development useable by all. They generally include the internal areas of the block such as the corridors and stair cases. They can sometimes include external areas; however these are often defined as “Estate areas”.

Consents: This is the written permission leaseholders require from the landlord or management company. The lease will list items where consent is needed, often for alterations or permissions to keep pets etc.

Consultation: The legal process landlords and management companies must follow when major works or long term contracts are being undertaken.

Covenant: This is a legally enforceable promise. You agree to follow a lost of covenants when you sign your lease or transfer.

Demised premises: This is the definition of the property being leased. Each lease will have a different definition of the demise, the areas contain in the demise will be your responsibility and therefore not coverable by a service charge.

Estate Areas: The external common areas on a development such as car parks, gardens and roads.

Forfeiture: Where the lease is ended by a formal legal process because the leaseholder has broken the lease. This course of action only takes place for substantial breaches of the lease and requires a decision of a court or Leasehold Valuation Tribunal.

Ground Rent: This is the rent paid to the landlord by a leaseholder. Some leasehold will not have to pay ground rent; this is known as a peppercorn.

IRPM: The Institute of Residential Property Managers. A body which offers professional qualifications to property managers. Your property manager is qualifies if you see the following letters after their name. AIRPM, MIRPM, FIRPM.

Landlord: The owner of the freehold on which a block is built. In some cases Landlords a responsible for providing maintenance services, in others they may only collect the ground rent. Check your lease to find out exactly what your Landlord is responsible for.

Lease: This is the document which sets out the rights and obligations of both the landlord and the leaseholder and often a management company. The lease forms a contract between the parties involved.

Leasehold Valuation Tribunal: Commonly referred to as the LVT. This is an independent and impartial body which makes decisions about service charge and other leasehold disputes.

Managing Agent: In most cases leaseholders and landlords do not have the time or expertise to run the service charge and maintenance on a development. Therefore a managing agent will be hired to carry out the day to day management of the development.

Management Company: Some leases take the responsibility for maintenance and the service charge away from Landlords and place them on a residential management company. All leaseholders will be members of the company and will have a chance to take control of the company.
Quiet Enjoyment: A leaseholder’s right to be notified by their landlord before any visits are made.

RICS: The Royal Institute of Chartered Surveyors: The publishers of the code of conduct for residential managing agents.

Service Charge: The charge that is made in return for the services provided by the landlord or management company. Sometimes know as the rent charge or maintenance charge. The lease or transfer will detail the specifics of the charge such as when it is due and how it is to be paid.