Glossary

An Administration charge is any money the landlord demands from the leaseholder for granting approvals under the lease, for the provision of information or documents, for dealing with a failure by the leaseholder to pay ground rent or service charges, or in connection with a breach of the lease.

The Annual (yearly) accounts are usually described as 'financial accounts', 'company accounts' or 'statutory accounts'. The main aim of yearly accounts is to present a comprehensive report of the financial activity of your limited company during its latest financial year.

Money that is owing by one party to another. This will usually be an amount owing by a leaseholder to a landlord which is payable under the lease, such as ground rent or a service charge.

Written rules about running the company agreed by the shareholders or guarantors, directors and the company secretary.

A meeting of the board of directors of a company at which the policy of the company and major decisions as to its future actions are discussed.

A breach of a clause in a lease. This could be breaking an obligation or a prohibition that is spelt out in the lease. A classic example is a covenant for a leaseholder to pay a service charge towards exterior maintenance.

The annual confirmation statement is a new filing requirement that was introduced on 30^th June 2016. It has replaced the annual return ( Companies House Form AR01) but serves exactly the same purposein a simplified format. All private limited companies and limited liability partnerships (LLPs) registered in the United Kingdom must deliver at a confirmation statement to Companies House at lease once every 12 months, even if the business is dormant.

A party may apply to a court or a tribunal to avoid serving a notice under a legal procedure. If they succeed, the court or tribunal issues a dispensation from serving that notice.

An example could be a tribunal allowing a group of leaseholders to acquire the right to manage without serving a claim notice on the landlord because the landlord is absent.

Another example is a landlord applying to a tribunal to dispense with the need to serve a consultation notice in relation to major works where the works are urgent and the leaseholders will not be significantly prejudiced (eg the leaseholders can demonstrate to the tribunal that they would have made observations on estimates had they been properly consulted).

Forfeiture means the lease can be terminated and the property revert to the freeholder. This could arise arises if the leaseholder breaches the terms of the lease.

An example could be a failure by a leaseholder to maintain their flat. The law restricts the use of forfeiture even where the lease has been breached; however, if you find yourself in this situation you should seek legal advice. If an alleged breach is not admitted or agreed by the leaseholder the landlord will have to apply to the First-tier Tribunal or a court for a determination of the breach before they can start any forfeiture action.

The ultimate title in property.

By being the owner of a freehold you own the building, and the land it stands on, outright and forever.