What are the provisions and arrangements? Explain clearly to your client how the service charge operates and functions.
Law and practise
Your client owns the freehold of a building and wishes to understand what certain terms of the lease mean in the light of the tenant’s obligations, rights and legal position; knowing that the building may be sold as a tenanted investment in the near future.
Your client has asked that you undertake three things in order to achieve their objectives:
⦁ Extract six terms of the lease into a lease summary, and
⦁ Appraise how each of these terms could impact the ‘quality’ and ‘attractiveness’ of the tenanted investment.
⦁ You should also explain how repairs to the building are paid for. What are the provisions and arrangements? Explain clearly to your client how the service charge operates and functions.