Why has landlord created leases on parking spaces?

Why has landlord created leases on parking spaces?

by Readers Question

Guest Author

9:16 AM, 28th May 2024, About 4 weeks ago 6

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Hi, we have two phases in our property development:

  1. Phase One: 149 flats (140 with leases), built around 2005.
  2. Phase Two: 66 flats (11 with leases). The landlord rents out the rest and has created leases on parking spaces in this phase.

Any idea why the landlord would create leases for parking spaces in phase two? I am looking into RTM, at the moment .
The two blocks, (joined like a house extension) have different title numbers, are managed separately by the same company but we share an underground car park .

So I am trying to gather as much info as possible and leases on parking spaces seems an anomaly, any ideas?

If the building is counted as one, the lack of leases on flats in phase two may prevent RTM if we are unable to collect service charges.

Thanks,

Cindy


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Comments

Southern Boyuk

13:11 PM, 28th May 2024, About 4 weeks ago

What has the planning commission said for this? Normally? The parking spaces are associated with each of the flats. What he is doing is gaining extra income from the parking space rather than allocating them to the flats so that the flats can have enough parking spaces. Something that there never is.

NewYorkie

13:48 PM, 28th May 2024, About 4 weeks ago

Pure profiteering!

I think you will find you will need 2 separate RTM companies. This would make it easier for Phase 1 if each flat has a demised parking space.

The difficulty may come with allocating service charges for the shared parking area. However, if there are separate leases for parking, each will have an obligation to pay a service charge, which could provide some guidance as to how much the landlord's share should be.

Darren Peters

17:25 PM, 28th May 2024, About 4 weeks ago

What do the existing Leases say about the parking spaces? Ie is there any reference to shared or exclusive parking spaces? Is the Freeholder trying to sell parking spaces to which you have some kind of rights or were they never part of the existing Leases?

For example if the Lease makes reference to 20 spaces to be shared by the 50 flats (or whatever numbers) and Freeholder is trying to take 10 to sell off it could be disputed.

Graham Bowcock

20:23 PM, 28th May 2024, About 4 weeks ago

Anther question where you need to get some good legal/surveyors' advice.

Unless the planning consent required parking spaces to eb connected to the individual properties then the landlord can less them out separately so firstly check the planning consent.

Then you need to read the parking leases to find out what is included and whether or not there is a service charge contribution. There may not be, in which case the freeholder/RTM simply collects the rent and needs to make sure it covers any potential costs.

You need to go through the flat leases to find out what is included in each one - some may be different.

I suspect you will need two separate RTMs; we had this with two adjacent, identical blocks we managed. The former agent had combined them, but that was wrong and they were supposed to be oerpated separately.

Cider Drinker

22:39 PM, 28th May 2024, About 4 weeks ago

I assume parking is limited,

Not all flat owners will need 2 or 3 spaces. Some may not need any

This arrangement allows those that don’t need so many spaces to pay less for their flats. Seems to make sense to me.

Kizzie

13:49 PM, 1st June 2024, About 3 weeks ago

I agree that first step is see what your leases say about parking rights.
I take it the parking is on land owned by the freeholder and he wants money to maintain the underground parking area.
When you purchased your lease was there any information about parking?
If there’s no parking spaces because they’re leased out then what happens? Are you deprived of legal access to your accommodation and your legal right to occupy for which you paid a premium? Agree you need specific legal advice whether there are restrictive covenants on this freehold interest on this retained common area.

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