Who’s Who in the Leasehold World?

Scenario 2 : Tri-Partite Lease - Three Parties

The next scenario we’re looking at is called a tri-partite lease because it has three parties involved. There are the freeholder and the leaseholder, as we had before, but also a Residents Management Company. In this scenario, the freeholder continues to deal with ground rent and contacts the leaseholder in that regard. But all of the day-to-day duties in respect of running the building and the grounds etc. are outsourced to the residents Management company, and it is that company that contacts the leaseholder in respect of service charges and the expenditure incurred by the company in running the building.

In 99% of Resident Management Companies, the shareholders or members of that company are, in fact, the leaseholders at the building. It is, therefore, a fairly democratic scenario, as those that pay the service charges are in charge of the company, which incurs the service charge costs.

And of course, once again, the freeholder may have a managing agent, the Residents Management Company may well have a managing agent and the leaseholder may have a lettings agent.

Scenario 3 : Right to Manage

Our next scenario is where the initial simple set up of freeholder and leaseholder has been changed because, at some point the leaseholders have used ‘Right to Manage’ in order to take away the day-to-day running of the building from the freeholder.

Now, in this scenario, the leaseholders have used the Commonhold and Leasehold Reform Act of 2002, which is when Right to Manage Companies came into existence and some of the leaseholders have, therefore, become directors of the Right to Manage company and it is that company that deals with all of the day-to-day management functions of running the building and the grounds etc.  And, again, it could be that the freeholder has a manging agent, the leaseholder has a letting agent and the Right to Manage company employs its own Managing Agent.

Scenario 4 - Right to Enfranchise

Our next scenario is where the freeholder has been taken over – or removed – by the leaseholders. The leaseholders have used ‘Right to Enfranchise’ to force the freeholder to sell the freehold to them via a Residents Freehold Company. And that company will take over all the duties of the freeholder and, of course, that company may well have its own managing agent.

Now, here at Casserly Property Management, we deal with all four of those scenarios, if the property is in the North West of England. So, if any one of those four is your scenario and you’re looking for a new managing agent, then don’t hesitate to contact us and we can discuss, with no obligation, your requirements.  Simply use the button, below, to schedule a free consultation or you can contact us here.

We look forward to hearing from you.