Glossary of terms

Affordable homes

The provision of  rented or  purchased  flats  or  houses for  less than the  full  market value.  This includes property  for  social  rent (from a  Housing  Association) available  to  buy  on a  shared  ownership  basis  or available with Government/housebuilder  schemes  such as NewBuy  and  other  shared equity schemes

 

Company limited by guarantee

A private Company  in the  UK defined by the  Companies  Act 2006  which  has  no share  capital or  shareholders.  This  is the  standard type  of  company  used  in the  RMC  model -  all private Leaseholders  automatically  become Members when purchase  of their  property  is  Completed

 

Conveyencer

The  solicitor who acts  for  you and  draws -up the  documents for  the  purchase  of  your  house/flat. If  you  are  buying  a  new  property  the  builder may recommend who they  would  prefer  but  it  is  your  choice.

 

Director

A  Company  Officer who  is  responsible  for running the  Company in accordance with its Articles  of  Association/Memorandum  of  Association and  relevant Company   law  in the  UK.   It  is  not  usual for  there  to be any  remuneration  in a typical   RMC.

 

Freeholder/Freehold

Someone who holds a  freehold  property.  Freehold  is the  absolute  right to  hold  property  or  land for  an unlimited  time  without  paying  rent

 

Ground Rent

Rent paid by a  lessee to the person or  company  that  owns  the  freehold

 

Housing association

A private, non-profit making organisation that provides low-cost social housing for households in need  of a  home.  Any  trading  surplus is  used to  maintain existing  housing and  to  help  finance  new  homes.

 

Landlord and Tenant Act 1987

This is the  main  legislative Act  of Parliament  which  regulates the letting  of  property  in England (access the  Act  HERE)

 

Lease

A written contract/agreement  for the  renting  of  a building  or  piece  of  land

 

Leasehold Advisory Service  (LEASE)

A Government body that provides  free  legal  advice to  leaseholders, landlords, professional advisors, managing agents and  others  on the  law affecting residential leasehold  in England and  Wales. (Access  their  site  HERE)

 

Leasehold  Valuation Tribunal (LVT)

A  statutory  tribunal which determines various  types of landlord and  tenant disputes involving  residential property  in the  private  sector. (Access  LVT decisions  HERE)

 

Lease holder

Someone  that  holds a  property  or  land  on  lease

 

Managing Agent

A person or  company appointed  by the RMC/residents  to manage the  property and  estate  as  defined  in the  lease. It  should  be  noted  that as  this  is  an 'agent' for the  Company then the  legal responsibility for the  full  and  proper  management  rests with the  RMC.  The  Trade  Association for  Managing  Agents  is the Association of  Residential   Managing Agents (A.R.M.A)   - access  their  site  HERE

 

Mixed tenure development

Housing  sites  that  comprise a  mixture of  types  of  tenancy i.e  whether lease  or  ented  tenure.  Sites  may also  include a  retail  or  business element - it  is  not  uncommon for  Local Authorrities  on  larger sites  to  include  provision within Planning  Conditions for  amenities  such as gyms, community centres, libraries, doctors/dental  surgeries.  Under current  planning  law in the  UK any  residential development  comprising  more  than 15 dwellings  must  have a minimum social  housing  content of  35% (note:  this  is  subject to change and  may  vary  between  local  planning  authorities)

 

NewBuy 

This  is the  UK Government scheme that  aims to help  households with smaller  deposits  to  buy a  new  build  home.  Launched  in  March  2012   it  is  aimed  at first-time  buyers  and  those who  already  own a  home who  only  have  funds for 1  5 - 10% deposit; the  participating lenders  provide a  suitable  mortgage on this  basis. (access their  site HERE)

 

Residents'  Association (RA)

A group  of  residents from a block  of  flats, or  collective Freeholders  on the  same  road or  estate,   who  formally  join together as  a  representative  group. To  be  effective an RA should  be  formally  recognised - there  is provision within Section 29  of the  Landlord and  Tenant Act to do this).  Affiliation  to the  Federation of Private Residents'  Associations (F.P.R.A)  is recommended (access  their  site  HERE)

 

Resident Management Company  (RMC)

A company  owned  by  residents  who  in turn collectively  own their building  or  intend to  buy the  building (s) 

 

Right To  Manage  (RTM)

Under the  Common and  Leasehold Reform Act 2002  the  idea  of  RTM is to provide leaeholders  with the  right to collectively   take over the  management of their  building by  compelling the  landlord/freeholder  his  right,  without  having to  prove  fault  on  his  part. Within the  context of  RMCs there  may  still be  part  of the building management that  the  landlord may  still  be responsible  for uinder the  lease  e.g. a requirement  to insure the buildings

 

Service Charges

A  charge   made by a  landlord/RMC  to  cover the  cost  of services  that  are  provided for as defined  in a  lease.  (The  R.I.C.S  publish a Service Charge Residential Management  Code which  can be  accessed  HERE)

 

Shared  Ownership

This  is a part-rent part-buy arrangement  between a housing  association and tenant. Typically  you put  down a 10% deposit on the  share  amount  you  buy - you  can  own between 25% and  75% and the  remaining  share is  owned  by the  HA.  You  pay a subsidised rent on the  remaining share and  are  able  to  buy more  of  it  over  time.

 

Social Housing

An umbrella  term referring to  rented  or  part-rented housing owned and  managed  by the  local  authority or a  housing  association usually with the  aimof  providing affordable  housing. Prior  to the  change  in Government  policy in the  1980s  when Right To Buy  was  started  social  housing  was  'council  housing'.