Residential Service Charges Raised in the Lords
Baroness Gardner raised the issue of Leasehold Residential Service Charges in a short debate in the House of Lords.
She debated with the government over several issues faced by leaseholders, with the support of other Lords in attendance.
Currently, millions of pounds in service charges can be held by any Freeholder with no effective legal control over the holding of these funds. In addition, Service Charges are required to be held in Trust (Section 42 Landlord and Tenant Act 1987) yet leaseholders have no assurance that these funds are being held appropriately, and for those that are not holding Service Charges in Trust, there is no criminal sanction against them.
With these issues top of the agenda, Baroness Gardner asked Her Majesty's Government what they propose with regards to the money deposited by leaseholders to agents and freeholders for service charges. The non-regulation of leaseholders' funds is out of line with other legislation, and also the Government's approved guidelines.
Bernie Wales, who is an expert in Leaseholder property management, was asked to contribute to the briefing paper. He says:
"Currently property management bodies such as ARMA and RICS ask members to follow the RICS Management Code. However there is no legal requirement to do so. The good guys are no problem - it's the rogues who need controlling. ARMA and RICS can do nothing to control these rogues - which is why formal regulation is required."
The short debate took place in the Lords on 23 April 2012. We will be releasing a press release with details of the outcome shortly. Leasehold Management
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Categories: Real Estate
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If you are looking for Leasehold Management then contact Bernie Wales at http://berniewales.co.uk
If you are looking for Leasehold Management then contact Bernie Wales at http://berniewales.co.uk
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