jrobertson
19-01-08, 12:12 PM
Telegraph.co.uk - 19/01/2008
Problem neighbours: Love (and negotiate with) thy neighbour (http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2008/01/19/pneighbours119.xml)
Getting on with your fellow freeholders isn't always easy. Julian Barnard offers 10 hard-won tips for avoiding a meltdown
Have your say: How do you solve problems with your neighbours? (http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2008/01/19/pneighbours119.xml#form)
Scarcely a week passes without a grim news story of neighbours at loggerheads with each other. Getting on with them next door has always been tricky. But if, like me, you live in a house split into flats - each of which has a share in the freehold - the potential for disputes over maintenance hits nothing less than Cold War levels. And as shared freeholds now become the norm, so does the problem of how to negotiate over jobs, chores, bills, repairs... the list can be positively endless.
http://www.telegraph.co.uk/property/graphics/2008/01/19/pneighbour119.jpg
Julian Barnard with Linda, one of his co-freeholders, outside their West London homes: 'We've achieved a satisfying, neighbourly peace'
Over the past 18 months, in my shared house in West London, we have had to agree on a series of unglamorous problems: exterior painting, roof leaks, new health and safety legislation, crumbling balconies and bin storage.
There were times when relations could have gone nuclear. But by employing a little armchair diplomacy we have managed to step back from the brink and have achieved a rather satisfying, neighbourly, peace.
For anyone facing recalcitrant cohabitees, here are a few guidelines:
1 Accept that you cannot choose your neighbours
A good place to start your shared freeholder relationship is to accept some stern advice I was given from a leading London managing agent, who asked not to be named.
"A lot of my clients, who normally lead perfectly civilised lives, resort to childish playground behaviour when dealing with those living nearest to them,'' he said. "I have often had to remind people that when you buy a property, you do not buy the right to decide who lives next to you.'' Once you accept that you are stuck with your neighbours, until they decide to move on, negotiations can begin.
2 Compromise is king
Even if you are a master negotiator at the office or among family, don't expect the same success with your neighbours. I have found that getting exactly what you want is impossible. For the sake of good relations, therefore, embrace - yea, learn to love - compromise.
3 Read and understand the freehold agreement
Most, if not all, shared ownership arrangements place the responsibility on the freeholders to maintain the property. In theory, therefore, all problems should be clearly covered when you are dealing with the fabric of a building. But defining the fabric of the building, or deciding whether work is only cosmetic, can throw up some tricky grey areas. In these cases, you can either call in the lawyers (see below) or, much better, come up with a sensible agreement among yourselves.
Maintaining the value of the property is also a requirement of mortgage lenders - something a lot of people tend to forget.
4 Loss-leaders
The loss-leader is the only underhand tactic I would recommend. Take a position on something about which you really don't care either way. Demonstrate your magnanimous nature by agreeing to a neighbourly request on that something without a fight. Once everyone thinks you are a thoroughly reasonable sort of person, getting agreement on things that do matter to you should be easier.
5 Your problem is not our problem
If a leaking roof has turned your sitting room soggy overnight, don't expect those in the basement to want to whip out their cheque books with the same enthusiasm as you. Even if they have an Aston Martin parked outside, they will not only be short of sympathy, but also (most probably) cash. This will seem outrageous and unreasonable to you. But bear in mind few have money stashed away for emergencies; bring them round gradually. Swallow your indignation and get hold of three quotes for the work. The best way to get things moving quickly is to clearly show how delay or temporary solutions will cost even more money.
6 Keep a small sinking fund
A lot of shared properties keep a sinking fund, normally collected as ground rent or a service charge. These are excellent for routine expenditure and to avoid calling meetings for every small emergency. Don't make contributions too high or people will start to object.
7 Hire a managing agent
This useful person will deal with the accounts and manage any maintenance jobs. He or she will be an extra cost, but should be seriously considered.
Fees should not be more than a few hundred pounds per year each, depending on the size of the property. Most agents will charge a small percentage extra for managing big jobs such as replacing the roof. But since they should have good, reliable tradesmen on their books it will be worth the money.
Some shared freeholds are lucky to have a resident who volunteers to manage house affairs. If you choose this option, you should consider whether they are qualified to deal with complex building regulations of any project and be up to date with health and safety legislation. When things go wrong, it is very easy for other residents to blame whoever has taken charge.
8 Voting
Most shared freehold agreements give a vote or votes to each home depending on what proportion of the building they own. This is designed to allow decisions to be made if full consensus cannot be reached. I would again, however, urge caution, as your house is not the Big Brother house. As much as you might like to, you cannot permanently evict people for wanting pink pillars rather than white.
You are likely to find the urge to form alliances with those who agree with you strong. Think United Nations rather than reality TV, and compromise can normally be agreed.
9 Meetings
The house annual general meeting is something only those who do not get out much will look forward to. But it is a legal requirement. Like most meetings, preparation is the key: surprises should be avoided to prevent knee jerk reactions to decisions. Our greatest problem has been location. None of us seem to want to expose our idea of interior design to those above and below, so we have it in the local pub instead.
10 Avoid legal action
In our house, so far, it seems we all agree on one thing: lawyers are quite rich enough already, and do not deserve to pay for a larger swimming pool at their Tuscan villa with our limited funds. Legal action against neighbours really is the nuclear option. Apart from the money, it will ruin relations for good.
Problem neighbours: Love (and negotiate with) thy neighbour (http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2008/01/19/pneighbours119.xml)
Getting on with your fellow freeholders isn't always easy. Julian Barnard offers 10 hard-won tips for avoiding a meltdown
Have your say: How do you solve problems with your neighbours? (http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2008/01/19/pneighbours119.xml#form)
Scarcely a week passes without a grim news story of neighbours at loggerheads with each other. Getting on with them next door has always been tricky. But if, like me, you live in a house split into flats - each of which has a share in the freehold - the potential for disputes over maintenance hits nothing less than Cold War levels. And as shared freeholds now become the norm, so does the problem of how to negotiate over jobs, chores, bills, repairs... the list can be positively endless.
http://www.telegraph.co.uk/property/graphics/2008/01/19/pneighbour119.jpg
Julian Barnard with Linda, one of his co-freeholders, outside their West London homes: 'We've achieved a satisfying, neighbourly peace'
Over the past 18 months, in my shared house in West London, we have had to agree on a series of unglamorous problems: exterior painting, roof leaks, new health and safety legislation, crumbling balconies and bin storage.
There were times when relations could have gone nuclear. But by employing a little armchair diplomacy we have managed to step back from the brink and have achieved a rather satisfying, neighbourly, peace.
For anyone facing recalcitrant cohabitees, here are a few guidelines:
1 Accept that you cannot choose your neighbours
A good place to start your shared freeholder relationship is to accept some stern advice I was given from a leading London managing agent, who asked not to be named.
"A lot of my clients, who normally lead perfectly civilised lives, resort to childish playground behaviour when dealing with those living nearest to them,'' he said. "I have often had to remind people that when you buy a property, you do not buy the right to decide who lives next to you.'' Once you accept that you are stuck with your neighbours, until they decide to move on, negotiations can begin.
2 Compromise is king
Even if you are a master negotiator at the office or among family, don't expect the same success with your neighbours. I have found that getting exactly what you want is impossible. For the sake of good relations, therefore, embrace - yea, learn to love - compromise.
3 Read and understand the freehold agreement
Most, if not all, shared ownership arrangements place the responsibility on the freeholders to maintain the property. In theory, therefore, all problems should be clearly covered when you are dealing with the fabric of a building. But defining the fabric of the building, or deciding whether work is only cosmetic, can throw up some tricky grey areas. In these cases, you can either call in the lawyers (see below) or, much better, come up with a sensible agreement among yourselves.
Maintaining the value of the property is also a requirement of mortgage lenders - something a lot of people tend to forget.
4 Loss-leaders
The loss-leader is the only underhand tactic I would recommend. Take a position on something about which you really don't care either way. Demonstrate your magnanimous nature by agreeing to a neighbourly request on that something without a fight. Once everyone thinks you are a thoroughly reasonable sort of person, getting agreement on things that do matter to you should be easier.
5 Your problem is not our problem
If a leaking roof has turned your sitting room soggy overnight, don't expect those in the basement to want to whip out their cheque books with the same enthusiasm as you. Even if they have an Aston Martin parked outside, they will not only be short of sympathy, but also (most probably) cash. This will seem outrageous and unreasonable to you. But bear in mind few have money stashed away for emergencies; bring them round gradually. Swallow your indignation and get hold of three quotes for the work. The best way to get things moving quickly is to clearly show how delay or temporary solutions will cost even more money.
6 Keep a small sinking fund
A lot of shared properties keep a sinking fund, normally collected as ground rent or a service charge. These are excellent for routine expenditure and to avoid calling meetings for every small emergency. Don't make contributions too high or people will start to object.
7 Hire a managing agent
This useful person will deal with the accounts and manage any maintenance jobs. He or she will be an extra cost, but should be seriously considered.
Fees should not be more than a few hundred pounds per year each, depending on the size of the property. Most agents will charge a small percentage extra for managing big jobs such as replacing the roof. But since they should have good, reliable tradesmen on their books it will be worth the money.
Some shared freeholds are lucky to have a resident who volunteers to manage house affairs. If you choose this option, you should consider whether they are qualified to deal with complex building regulations of any project and be up to date with health and safety legislation. When things go wrong, it is very easy for other residents to blame whoever has taken charge.
8 Voting
Most shared freehold agreements give a vote or votes to each home depending on what proportion of the building they own. This is designed to allow decisions to be made if full consensus cannot be reached. I would again, however, urge caution, as your house is not the Big Brother house. As much as you might like to, you cannot permanently evict people for wanting pink pillars rather than white.
You are likely to find the urge to form alliances with those who agree with you strong. Think United Nations rather than reality TV, and compromise can normally be agreed.
9 Meetings
The house annual general meeting is something only those who do not get out much will look forward to. But it is a legal requirement. Like most meetings, preparation is the key: surprises should be avoided to prevent knee jerk reactions to decisions. Our greatest problem has been location. None of us seem to want to expose our idea of interior design to those above and below, so we have it in the local pub instead.
10 Avoid legal action
In our house, so far, it seems we all agree on one thing: lawyers are quite rich enough already, and do not deserve to pay for a larger swimming pool at their Tuscan villa with our limited funds. Legal action against neighbours really is the nuclear option. Apart from the money, it will ruin relations for good.