THE ISSUES OF MANAGEMENT ON THE LEASEHOLD FLATS IN ENGLAND

Abstract

This study examines the issues of management on the leasehold flats in England. There are approximately 1.5 million units of flats. They are owner-occupied housings, and are divided into freehold and long leasehold. Long leasehold flats are common. There are many problems in long leasehold flats which are pointed out such as; depreciating asset, imbalance of stake holding, landlord abuses, poor management, lessee ignorance, noise, insufficient of knowledge concerning the management company and the board of director, troubles between the management company and managing agents, lack of cost of maintenance, absentee owners (leaseholder), freehold purchase and leasehold extension, service charge and so on. And then, freehold purchase and new management system was established in 1993 .And commonhold system was established as a new tenure of block of flats in 2002. One of big differences between commonhold and leasehold is tenure of unit. The commonhold has unit with freehold, on the other hand, the leasehold has unit with leasehold. Central government makes law and regulation.. for commonhold, and then establishes the organization for advices.