Q: I have recently bought a flat and have been offered building insurance from my mortgage lender. However, whilst looking at the service charge accounts I noticed that there is a provision for insurance, what shall I do? A: It is common for mortgage lenders to provide their own insurance, however buildings insurance tends to be included within the service charges. If you are unsure then I would suggest asking your managing agent for a copy of the current insurance schedule which will provide details of the cover provided. It is possible that there may be a provision stating that there is some contents cover. Generally, this will be cover in respect of the common parts and I would strongly advise that you take out separate contents cover. I would remind you that if the contents of your flat are damaged then this will not be covered under the building insurance.
Q: How are the service charges calculated, what do they include and how is my share of the service charges worked out? A: It is usual practice for the service charge budget for a building to be calculated using the expenditure incurred last year as a basis for comparison. It should also include any planned works to be carried out within that financial year. It is important to remember that these charges are only estimated and, therefore, are often incorrect.
Q: The people upstairs are extremely noisy, can I do anything about it? A: In most cases the terms of any leases state that noise should be kept to a minimum between the hours of 11pm and 9am and that a resident is entitled to ‘quiet enjoyment’ of their property. If the noise is occurring between these hours then the first thing that I always suggest is to knock on the door and speak to the people in the flat above. It is usually the case that they do not know that they are being noisy and that once you have bought it to their attention they are extremely embarrassed and apologise profusely, the end result being that they are more careful about the amount of noise they are making. If this does not work then I would suggest that you contact your local council and speak to the environmental health department and speak to the noise pollution department. They will send an agent down to the property to assess the noise and speak to the noise offenders. Alternatively, you can ring your managing agent and ask them to write a letter to the lessee of the flat above asking them to desist from making too much noise. However, I would always avoid this course of action, as, should this situation worsen, it would be viewed as a dispute. When solicitors draw up their enquiries they frequently ask for knowledge of any disputes and obviously it is the duty of the person answering these questions to be honest about the situation as they could be held accountable in the future for omitting relevant information.
Q: I have heard lots of talk about Section 20 Notices - please explain what they are and how they would affect me as a lessee? A: In 2002, new requirements were introduced to protect the lessee should the landlord want to carry out works above a certain value or to enter into long-term contracts for the provision of services. Currently, lessees must be advised if the costs incurred will exceed the amount of £250 per unit. Should works need to be carried out to the building that will exceed this amount then the consultation procedure will be invoked. This involves three letters being sent to all of the lessees, the first being the notice of intention of the works, the second who will be quoting for the works and the third explaining how the successful contractor was chosen and requesting the funds for the works. After the first letter is sent out there is a 30-day period for the lessees to make their observations and they are also able to nominate their own contractor to quote for the works. After the second letter has been sent out there is a further 30-day period for lessees to make their observations before the monies are requested.
Thanks to Sarah Fisher, of Smith Melzack Pepper Angliss , for answering our readers’ questions
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