· Question: What is a Freeholder?
· Answer: A freeholder is the owner of the land that a property is built on.
· Question: What is ground rent?
· Answer: The owner of the land the “freeholder” of which the property is built on will allow the use of the land based on there being a long lease. In turn, they can charge a fee for ground rent.
· Question: What is a Management Company?
· Answer: A management company or RMC (Residential Management Company) is a company made up of people who own the flats or apartments that make up the whole development. Directors are then usually elected from amongst the residents who in turn then employ a managing agent to manage the block they live in.
· Question: What is a Managing Agent?
· Answer: We are the managing agent, we are employed to look after the day to day administration for your building.
· Question: What is a service charge?
· Answer: A service charge is a fee payable by all owners of the flats/apartments that make up your development. This charge is required to cover the maintenance, insurance and any other prescriptions within the lease for the communal areas of your block.
· Question: What are reserve funds?
· Answer: A reserve fund is a fee payable by the owners of each property to ensure there is sufficient money available for future scheduled major and cyclical works, such as lift replacement, or internal/external decoration. Contributions to the reserve fund are not repayable to the owner of the flat once it is sold.
· Question: How is the building insured?
· Answer: The whole block of flats has “a block policy”. The insurance premium is then split between each flat. Claims are processed with the insurance broker via ourselves.
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