|Clause||Intention of the clause||What the lease might say||When you need to implement the clause|
|Alterations Clause||Control alterations to
||Lease might saye
When a lessee requests permission
When it is suspected that alterations have been carried out that may cause detriment/damage to the building
|Interest Clause||A detterent to late payment of ground rent or service charge||if the rent.... is in arrears for (normally either 14 or 21 days) typical clauses state interest is payable at X% above X bank base rate....||As part of a credit control regime to recover service charge or ground rent arrears|
|Decorations Clause (Landlord's / Management Companies duties)||To set the frequency or basis on which the Freeholder and/or Management Company should maintain & redecorate the exterior or common parts||
||To encourage lessees to commit to building a reserves fund towards future maintenance|
|Sub-letting||To ensure that tenants of lessees get advised of building rules/issues, eg, park in the right place, put rubbish out on the right day & that the ownership registers are up to date||
EITHER When a lessee requests permission
OR When it is suspected that a unit is sub-let and tenants need to be advised of the block rules to ensure the block does not deteriorate
|Ground Rent Provisions||To set out the dates when ground rent is due||
||As part of a credit control regime|
|Service Charge Provisions||
||As part of a credit control regime|
|Provisions for Reserves Collection / sinking fund||To enable the Freeholder and/or Management Company to build up a fund towards future cyclical works of repair/replacement||
The Lessor/Management Company may at its option create and maintain a reserve fund of such sum (to be fixed annually) as shall be estimated by the Lessor or managing agents (if any) to be reasonably required to provide a reserve fund for items of expenditure in connection with the provision of the services facilities and amenities specified in Schedule
The Tenant's proportion of the service charge expenses shall include any amount required for the maintenance of the Reserved Fund hereinafter mentioned
|When considering a strategy to collect funds toward future cyclical works|
|Provision for Supplementary demands||Provision for Supplementary demands||To enable the Freeholder/Management Company to collect funds towards service charge items other than by way of a budget annually||"to pay within X days of being demanded any such sum as the Lessors may require to reimburse the Lessors against any sum expended to fulfil their obligations...|
|Year end / Service Charge Accounts||To set out the method of accounting to be adopted for the service charge accounts. (A legal requirement if there are more than 4 flats in the building)||
Note: lease will state whether to be certified by accountant or surveyor
When placing year end papers, as to instruct an audit when all that is required is a service charge verification would create extra cost.
To not carry out an audit where the lease sets this out may put litigation on service charge arrears in jeopardy
|Forfieture/S146 Procedure||To ensure that the Freeholder's costs of forfeiture or contemplation of forfeiture are recoverable||
||When seeking to terminate a lease for breach of covenant Note: Post February 2004 you may need a court order or the consent of the Leasehold Valuation Tribunal to be allowed to take forfeiture action|
|Rights of entry||To enable the Freeholder and/or the Management Company to inspect units internally, both in the case of emergencies and for routine inspections||
To inspect for breach of covenant arising from waste/neglect or alterations within a flat.
To enter & effect emergency works where damage is being caused to a unit below...
Set out whose duty it is to insure.
Set out whether insurance premiums can be collected on demand as opposed to forming part of usual service charge collection.
Set out whether the landlord can insure at the service charge cost for loss of rent.
When considering how to pay a large insurance premium.
When considering what you can insure for.
|Parking (allocated, demised)||To set out what vehicles can park on an estate, how and where and who retains the ownership of a space||A space is: "allocated" to the lessee "demised" to the lessee||
When considering how to deal with
|Pets Clause||To set out what animals can be kept in a flat||No pets...||To enable covenant enforcement where pets are being kept in a property|
|Nuisance Clause||To prohibit nuisance||Normally hours where noise such as washing machines and playing musical instruments are restricted is included in the lease|
|Carpeting||To ensure floors are carpeted which assists in reducing noise transfer||Keep covered with...||When a lessee removes carpeting and/or installs wood flooring|
|Residents duty to clean their own windows||Keep exterior windows clean & presentable||When a lessee is not cleaning their windows|
|Lessee's duty to comply with statutory instruments and bye-laws||To ensure that wiring, gas, drainage/sewerage installations within flats comply with statutory regulations||When wiring is out of date and could cause a hazard/invalidate buildings insurances etc.|