Asbestos are you liable?

In need of a quick fix?

John Byers of Langley Byers Bennett provides sound advice about maintaining and repairing your block of flats. Continued on page 32

our property is

Yprobably your most valuable asset, and as a Resident Management Company (RMC) Director you have responsibility for your own property and for those of your neighbours. Buildings can be expensive to maintain, particularly when things go wrong, so a wellplanned approach to the regular maintenance and repair of a property is essential to avoid large, unexpected repair bills.

A well-maintained property also helps boosts property values and creates a pleasant environment to live in. In the course of our business as Chartered Building Surveyors we often find ourselves dealing with major problems that have arisen because simple (and often inexpensive) repairs have not been carried out in good time.

Maintenance is simply dealing with repairs in a planned way. Carrying out small, regular checks and repairs so defects are spotted quickly and remedied before they become expensive problems. Regular maintenance can prolong the life of building components so they last longer, and work better. It is always important to consider the terms of your buildings leases when planning the repair and maintenance of your block. For most flats the obligation to carry out repairs is split between individual leaseholders and the Resident Management Company. Generally the Resident Management Company will have the responsibility for the exterior of the building, the main structural elements; such as roofs, floors, walls and so forth and the common parts that are shared by the lessees such as stairwells, landings, car park areas and gardens. The interior of the flats and their services (such as electricity, gas and water) are the responsibility of each individual leaseholder. Windows and doors are often also the leaseholders responsibility to repair, although not normally to redecorate. However leases can be drafted in different ways and it is essential to check with the leases so the right person can make plans for the repairs they are legally responsible for.

The righT ConTrACTor

It is important to choose the right contractor to carry out repair work. Sometimes a general contractor (a builder with the ability to carry out different types of work or pull-in different specialists) is the best choice where there is a mixture of different work required. Sometimes where the work is limited to one or particular trades, a specialist contractor would be a better choice. When choosing a contractor ask your self the following questions:

• Are they a formal company? • Do they have public liability insurance, and a health and safety policy? • Have they been recommended to you? • Can you ask a previous client of theirs for a reference? • Have you, or your Building Surveyor seen their work? • Are they long-established and of good repute? • Have they given you a binding estimate, or complied with your formal tender procedure? • Will they sign a formal contract and keep to time and budget? • Are they insisting on money up front?

guArAnTees oF worKMAnship

The best guarantee of a contractor’s performance is to have the work carried out under the terms of a formal building contract, administered by a Chartered Building Surveyor. They will be able to advise you as to the quality of work you should expect and be able to advise and assist you if things do not go smoothly. For all but the simplest matters a Chartered Building Surveyor’s advice is valuable in diagnosing defects, specifying the right repair work and helping you select the right contractor for the job.

We have seen thousands of pounds wasted because contractors have been asked to do the wrong things, or gone about repairs in the wrong way. A considerable amount of our work arises because of disputes that have arisen because of poor workmanship, disagreement about payments or failure by contractors to return and correct or finish work. Often clients end up paying more to try and resolve a dispute than they would have done employing a Chartered Building Surveyor in the first place to help protect and advise them.

For more expensive work there is a formal consultation process that Resident Management Companies must follow with their tenants. This is set out within Section 151 of The Commonhold and Leasehold Reform Act 2002 although is commonly referred to as ‘Section 20’ from the earlier Landlord and Tenant Act 1985. This legally binding procedure requires all lessees to be given the opportunity of nominating contractors to bid for the work and give the lessees the opportunity to formally comment on the work that is proposed. If a lessee does not agree with the landlord’s proposed works or choice of contractor you have the right to say so as part of this process although ultimately the landlord has to decide what should be done.

ACCess probLeMs

Sometimes problems cannot be diagnosed precisely or the extent of repair work accurately predicted without special access being available (such as to high roofs) or exposure work being undertaken (such as to a concealed leak). In such cases the advice of a Chartered Building Surveyor is essential. They will know from knowledge and experience the sort of defect that may be present and be able to guide you as to the most likely investigations and repair work that will resolve the defect.

Case Study: Water damage – By Bruce Maunder Taylor

It is persistent dampness and recurring water leaks, which cause frustrating problems. An extreme example was a longterm leak from the outlet pipe of a washing machine in a second-floor rented flat in a block in Finchley, London.

The old lady living below complained. Someone called, but the second-floor tenants were not in so nothing was done. The lessee who owned the second-floor flat was not really bothered, the rent was being paid, his tenants did not complain, so why was it his problem? The leak was between two flats, it did not affect the common parts so, isn’t it their problem to sort out between themselves?

But then the upstairs tenant left and the letting agent inspected. Many of the kitchen vinyl floor tiles were curling up at the edges; the hardboard beneath, which covered the floorboards, was sodden; in the bathroom, the floor was a bit springy; the bedroom skirting boards on the wall between that room and the kitchen were rotten, and there was a pervasive musty smell. Thankfully, the building insurers accepted the claim. Extensive dry rot was uncovered, the old lady beneath had to be temporarily re-housed while two complete floors were renewed, and full irrigation treatment carried out, re-plastering, refitting and redecoration. £104,000 was paid out, the insurers raised the premium on renewal and imposed a £25,000 excess for each water damage claim. Because of the claims’ history, no other company would give a quotation, and now it was everyone’s problem because of the increased service charge demands and the adverse effect on the saleability of every flat.

Water leaking through a so-called pinhole in the flat roof covering sometimes has an unfortunate tendency to travel before it appears as a damaging leak some distance away. Condensation is not usually difficult to diagnose but, sometimes, psychology skills are needed to persuade the flat occupant that it is their way of life that is to blame, or an incompetent builder.

Then there is the problem of inadequate funds in the service charge account. Why? Maybe too many arrears have been allowed to accumulate? Budget squeezed too hard by the lessees’ representatives? The managing agent just did not know the building well enough to make a good judgement? Or have too many other repairs already swallowed the repairs allowance?

Meanwhile, the leaks continue. A competent property manager is trained to give reliable budgeting advice, to recognise when to send an appropriate tradesman, when the circumstances need an inspection by the property manager, and when to send a specialist or a surveyor. Not only must the water damage be repaired, the fundamental cause of the penetration must be correctly identified and properly remedied.

The property manager and the lessees’ representatives must work cooperatively to avoid the risks illustrated by this example.

As one director of a residents management company once told a managing agent: Everybody makes the occasional mistake. Recoverable mistakes I might forgive. Irrecoverable mistakes: you pay.

Block Management Online

Block Management online (BMo) is a website facility designed specifically to meet the needs of Residents’ Management Companies (RMC) and Property Managing Agents (PMA).

BMO’s stylish and simple websites are designed to provide a fully featured facility for every RMC. No technical skill is required and the website can be tailored to RMC’s requirements. If your block already has a registered domain name then this can be used for the new website instead of the website address that is provided by BMO.

The website includes contact forms, a community forum, documents, and news. There is also a Google maps integrated search page that allows visitors to search for local information.

Home

BMO key features & benefits:

• Your own block website for news, information and documents and pre-integrated with Google maps for local news and search. • Improved communication with leaseholders and residents by publishing up-to-date newsletters, AGM minutes, accounts, etc. • Reduced management cost and effort by publishing information through the RMC website. • Makes life easier for non-resident owners who can stay up-todate and involved more easily. • Reduced hassle and dependency on others by having all information available to you in one place.

The Property Database gives easy access to information about each property including contact details for leaseholders, occupiers and letting agencies. As

News Welcom page. e to our internet home Click here to see the latest news such as information about properties change hands this is where Here you can find useful information relating to our block meetings and social events, rules, changes, etc. new owners are registered. The Property and you can visit the contact us Register your email to section i touch. f you wish to get in subscribe to news updates ! Database also retains a history archive of previous owners and a comments history Report a fault Contact us for each property. Please click here to repor any faults in the block or t If you want to get in touch for any reason then please use the Contact information such as emails, communal areas. form on the Contact Us page. Please log in to track progress of Messages sent here will go to addresses and mobile phone numbers allocated jobs. our shared message box so can be read and responded to by anyone in the management team. from the Property Database can be accessed from within the message centre thereby making it easier to send correspondence to leaseholders and/or residents. The Message Centre gives you quick and easy access to all messages received to (and sent from) your block. The Message Centre and Property Database are connected so you can easily select recipients for a message by ticking the relevant boxes next to whichever leaseholder, resident or committee member that is to receive the letter, email or SMS. Block management online also stores a range of vital documents.

Contact Block Management Online on 07930 421117 or email sales@blockmanagementonline.com for a quote or visit www.blockmanagementonline.com for more information.

Documents In the documents section we publish documents that we think will be useful for you. on 18 Document 1 on 17 Do on 18 Document 1x on 17 Document 1 Portal log in Username Password Login

Click here if you have forgotten your log in details ? © blockmanagementonline.com Back to top Contact

Email Send Leaseholder, Landlord and Tenant portal

Broomfield Court Portal for Leaseholders, Landlords and Tenants

Do you know how short your Lease is? If not, would you like us to check this for you free of charge?

To do so please email the address of the flat and full post code to twilson@ashleywilson.co.uk. We will do the rest for you. (If you have your Land Registry title number this helps but is not necessary!) If your lease has under 90 years remaining now may be a very good time to apply to extend your Lease while prices are depressed. If so we can help you. We can also assist with the sale of your property (even with a short lease); the preparation of your HIP and all other associated property matters – whether commercial or residential..

Call Tony Wilson on 0207 802 4801 Email twilson@ashleywilson.co.uk www.ashleywilson.co.uk

57 Buckingham Gate | St James's Park | London | SW1E 6AJ Tel: 0207 802 4802 | Fax: 0207 802 4803 Email: twilson@ashleywilson.co.uk | www.ashleywilson.co.uk

“It will never happen to me”

In excess of 77% of all the cases Barrett Corp and Harrington (BCH) handle, involving billions of pounds worth of property, are found to be underinsured.

he reasons for underinsurance

Tare many and varied but often the origin of the sum insured is totally unknown. Some rely on inappropriate advice, rules of thumb, the market value or take the view ‘it will never happen to me’. Sometimes there is simply a failure to update a previous valuation.

BCH has also dealt with cases where the client has been reluctant to have the building valued fearing an increase in premium, not appreciating that any increase will be insignificant compared to the impact of underinsurance in the event of a claim.

Many insurance policies are subject to the Condition of Average, which means that in the event of underinsurance and partial damage, the amount that would otherwise have been paid is in proportion to the degree of underinsurance.

An example is as follows: 1. Block of 10 flats Insured for £1,000,000; 2. Development should have been insured for £1,500,000; 3. Major loss occurs to the value of £600,000; 4. Due to underinsurance, insurers invoke the Condition of Average and pay only 66.67% of the loss i.e. £400,000. Leaseholders have to find £20,000 each in order for the flats to be made habitable again; 5. Potential for Directors of

Residential Management Company to be sued by other leaseholders as no formal insurance valuation had ever been conducted. 6. In addition and despite the financial penalty, which can be devastating, underinsurance can lead to disputes, protracted discussions and of course delay in reinstating the building. Any additional costs resulting from such delay will not be covered by the insurance policy.

UK fire losses are at record levels and there is now greater potential for total losses than in the past, and, consequently, greater potential to test the adequacy of sums insured.

Go green and make money

Did you know that by installing solar panels, you could reduce your heating bills and sell electricity back to your energy supplier to reduce service charges in your block? New legislation due in April will make it easier than ever before to go green and generate your own electricity. Lesley Davies reports.

f you like this idea but are wondering how complicated it

Iwould be to achieve, the new so-called ‘Feed-in Tariffs’ or FiTs to be introduced in April should make it easier for Resident Management Companies (RMCs) to take advantage of the benefits of renewable energy. These are governmentfunded payments whereby anyone who has solar panels installed, will receive a fixed price for every kilowatt hour (Kwh) of electricity produced. There are three strands to the new system: • A fixed price for each unit of electricity generated; • A guaranteed price for each unit of electricity exported onto the electricity grid throughout the lifetime of a particular installation’s eligibility for FiT payments; and • Benefit gained from using your own electricity, i.e. lower bills and partial protection from future electricity price rises.

sTiLL inTeresTed?

There will be two separate schemes for electricity and heat. Still interested? Your first step is to determine whether or not your premises are suitable for a solar installation. According to the Renewable Energy Association, if you have a large, un-shaded, predominantly south facing roof space, this is ideal for solar panels. If not, they advise that panels can be mounted on other aspects or proud of the roofline.

Take professional advice. The Green Book Live at www.greenbooklive. com is a free online database that lists products and installers approved under the government’s Microgeneration Certification Scheme. The Renewable Energy Association also operates its own REAL assurance scheme, listing members who must comply with the Consumer code and only use products certified under the Low Carbon Buildings Programme or the Clear Skies programme – both backed by the government.

Once you have identified a reputable company in your area, your chosen supplier will estimate your typical energy consumption and recommend the right installation for your property. The larger the installation, the more electricity you will be able to sell back to the grid but the initial outlay could be expensive, so it is important that equipment is accurately sized to match your needs.

Planning permission is not required for solar installations but as they fall into the category of Approved Development, under current regulations you must notify the local planning department. However, unless you live in a conservation area, an area of outstanding natural beauty or in a listed building, you shouldn’t fall foul of your local planning officer.

FinAnCiAL beneFiTs?

So how much is a solar installation likely to cost and what financial benefits can RMCs hope to achieve? Terry Sweeney is sales manager for PV Systems, established in 1991 and a government-approved solar PV installer for the Low Carbon Buildings Programme. He admits there is no such thing as an average system or an average cost. “Most people look at a 1 kWp system, which will provide about 850 kWhp per annum and a carbon saving of 830kg of CO2 and then multiply this once they have identified their requirements,” he explains.

This equates to 6-8 panels. Ultimately, size is limited by the size of your roof and by the District Network Operator, which owns the electrical infrastructure system. According to Sweeney, a typical 1kWp system would be around £5,000 installed. He estimates that payback based on proposed April 2010 figures could be calculated as follows:

1. £5,000 outlay 2. Income from FiT 850kwh x 36.5p = £310.25 per annum, 3. Savings on imported electricity at estimated 11p per unit = £93.50 per annum. 4. Total £403.75 per annum

You can export any unused electricity and earn about 5p per unit, which would be an additional income. Therefore the payback period based on this system would be 12 years. The panels should remain in