IN SOME CASES, MEDIATION MAY BE THE ANSWER

A case like Margaret’s can now be taken to the Lease Mediation Service. In fact, all types of dispute that may arise between leaseholder and freeholder, with the managing agents, or between leaseholders in the same building can now be talked through with an experienced Lease mediator, with the aim of working out a solution satisfactory to both parties.

The mediators are qualified lawyers specialising in leasehold law who are also trained in mediation techniques.

This is how it works: first, both parties concerned must agree to go for mediation. Then the Lease mediator will meet individually with each party to identify the problem and discuss possible solutions.

Second, both parties will meet together with two Lease mediators, when each party will be asked to confirm a willingness to mediate and to agree ground rules.

Third, each party will be invited to present their views of the dispute uninterrupted by the other. Then the mediator will summarise the issues and try to agree some common ground. There has to be a willingness on both sides to reach agreement.

How long does mediation take?

Once the parties have met with the mediator, it usually takes about three hours.

What happens next?

Suppose agreement is reached on the disputed issues, the Lease mediator will draw up a formal agreement and produce papers for signature by each party. If agreement cannot be reached, the case must proceed to the LVT or court action.

What does it cost?

In 2006, there is an application fee of £100 payable by each party, and the actual session will be carried out at the Lease offices (see Resources, page 208).

Advantages of mediation

This is a new idea for settling disputes which commonly arise in blocks of flats. It is low cost and without the horrendous stress and expense of going to court, where the outcome is never certain. It prevents emotions from running too high, and enables each party to see the other’s point of view. The presence of a trained, impartial observer helps to calm the situation down and, often, stop a potentially fraught dispute from escalating into a full-scale legal battle where, usually, there are no real winners.

LISTED BUILDINGS

Many blocks of flats have become listed buildings – and they are not all elderly, by any means. If you buy a flat in a listed building, you have bought yourself even more problems, because you cannot undertake internal alterations, let alone external ones, without listed building consent.

For this, you need architect’s plans which have to be submitted to the local council, and the planning committee will then deliberate. Do not ever alter windows or the external appearance of the place without being granted listed building consent as you could be ordered to take the entire structure down.

The moral of the story is, with listed buildings, you never know when a council official may come snooping round. You could also be ordered to take down a satellite dish or other TV aerial, replace plasterwork or original mosaics. In my block, which is a listed building, it took two years to source some mosaics for the front step which were near enough to the original to satisfy the council, at a cost of £450 for one row of mosaics.

Listed buildings can be a nightmare, so be prepared if you fancy a flat inside a beautiful building with a preservation order slapped on it.

This case illustrates what can still happen with leasehold properties, even where laws and regulations are in place supposedly to protect just these people. In spite of his work on the problem, Gordon – a former television executive until he took early retirement – has found it impossible to untangle the layers of ownership and management.

What can he do? Nellie is too frightened to do anything.

These are the possible steps

• The managing agents proudly proclaim they are members of ARMA. Gordon should contact Head Office and ask for details of their grievance procedure. He has kept all documentation since 2003, when the freehold was sold on. This step would not cost anything.
• Gordon can contact Lease, the Leasehold Advisory Service, and ask for their advice. This step is also free.
• He can contact a solicitor specialising in leasehold issues. This step would be extremely expensive, and there is no guarantee of success.
• He can go straight to the LVT. This would cost, initially, around £300, and would involve a long, drawn-out fight.

All these steps, whether or not they involve a monetary cost, take up a great deal of time and effort. Although this case may be extreme, it illustrates how very unsatisfactory the leasehold situation still is. It also shows how wily freeholders or managing agents can bamboozle the poor leaseholder with frightening bills, threats of legal action and general obfuscation as to who actually owns the freehold.

Many blocks where this sort of thing has happened in the past have got together and enfranchised, thus putting an end to this kind of thing. But you still have to be prepared for an almighty fight.