Residential flat schemes—developer as landlord and manager
Residential flat schemes—developer as landlord and manager

The following Property practice note provides comprehensive and up to date legal information covering:

  • Residential flat schemes—developer as landlord and manager
  • Scheme outline
  • Advantages
  • Disadvantages

Scheme outline

This is the most straightforward residential flat scheme to establish. However, developers do not typically hold and manage rented property, so even though the developer initially has all the rights and obligations of both landlord and manager, it is likely that in due course the developer will sell the reversion to an investor, who will succeed to them.

The principal features of this arrangement are:

  1. the developer retains ownership of the exterior/structure of the building(s) which contain the flats, together with any internal common parts (entrance halls, staircases, etc) and any external amenity areas (car parking spaces, gardens, bin storage areas, accessways, etc)

  2. the flat buyer is granted an internal demise only of the flat (broadly akin to the demise of a retail unit in a shopping centre) together with appropriate rights (access, car parking, drainage, etc) in relation to any retained parts

  3. the developer covenants to repair and insure the retained parts and to provide other appropriate services for the benefit of the flat tenants collectively (eg window cleaning, lighting,

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