FAQs and Complaints

Answers to common questions, and how to raise a complaint with us or with The Property Ombudsman.

General guidance only, based on typical long leases in England and Wales. Your lease and the legislation that applies to your building are what count, so please get in touch if you have a specific question.

Block management

What does a block managing agent do?

We look after the day-to-day running of a building or estate on behalf of the freeholder, Right to Manage company or Resident Management Company. That includes arranging repairs and maintenance, managing contractors, collecting service charges, keeping accounts, arranging buildings insurance, tracking health and safety compliance and dealing with leaseholder queries.

Who do we work for?

Our client is the party responsible for managing the building under the leases: the freeholder, an RTM company or an RMC. We act on their instructions and in line with the leases, while keeping leaseholders informed.

How do I report a repair or an urgent problem?

Call us on 07774 234 895 or email info@millhouseltd.co.uk with your name, the property address and a description of the problem. Repairs inside your own flat are normally your responsibility under the lease, while the structure and communal areas are managed through the service charge.

Who arranges the buildings insurance?

In most blocks the freeholder, RTM company or RMC arranges buildings insurance for the whole building and the cost is shared between leaseholders. You are normally responsible for insuring your own contents and any improvements you have made.

Right to Manage (RTM) and Resident Management Companies (RMC)

What is the Right to Manage?

The Right to Manage lets leaseholders take over the management of their building from the landlord without having to prove any fault. It is exercised through an RTM company set up by the leaseholders. There are conditions on the type of building and the number of leaseholders who must take part, so it is worth getting advice before you start.

What is a Resident Management Company (RMC)?

An RMC is a company, usually owned by the leaseholders as shareholders, that owns the freehold or is responsible for managing the building under the leases. It is run by directors, who are normally leaseholders themselves. Many RMCs appoint a managing agent to handle the professional and administrative work.

What is the difference between an RTM company and an RMC?

An RTM company takes over the management functions from the landlord but the landlord still owns the freehold. An RMC typically owns the freehold (or is party to the lease) and is itself responsible for management. In both cases the leaseholders are in control through the company.

What does a managing agent do for an RTM or RMC board?

We provide the professional backbone: service charge budgets and accounts, arranging contractors and major works, statutory compliance, company secretarial support, filings and meeting administration. The directors stay in charge of the decisions.

Can we change managing agent?

Often yes. If you are an RTM company or RMC, your ability to change agent depends on your management agreement and the lease. We can talk you through the process and arrange an orderly handover of funds, records and contracts.

Service charges

What is a service charge?

A service charge is your share of the costs of running and maintaining the building, such as repairs, cleaning, communal utilities, buildings insurance and management. What you pay and how it is shared is set out in your lease.

How is the service charge set?

An annual budget is prepared based on the expected costs for the year and issued to leaseholders, with demands raised in line with the lease. At the end of the year the actual costs are accounted for and any difference is dealt with as the lease provides.

Does the service charge have to be reasonable?

Yes. Under the Landlord and Tenant Act 1985, service charges must be reasonably incurred and for services or works of a reasonable standard. If you think a charge is unreasonable, please contact us first. You can also apply to the First-tier Tribunal (Property Chamber) to decide whether a charge is payable.

What is a reserve or sinking fund?

A reserve fund is money collected over time towards future major costs, such as roof replacement or redecoration, so that leaseholders are not hit with one large bill. Whether and how a reserve can be collected depends on your lease.

Can I see the service charge accounts?

Yes. You have a statutory right to request a summary of the service charge costs and, within a certain time, to inspect the supporting accounts, invoices and receipts. Please contact us and we will arrange it.

What is Section 20 consultation?

Section 20 of the Landlord and Tenant Act 1985 requires a consultation process before qualifying works costing any leaseholder more than £250, or before entering certain long-term agreements costing any leaseholder more than £100 a year. If the process is not followed, the amount that can be recovered from each leaseholder may be limited.

Is there a time limit for charging me for costs?

Generally, if costs were incurred more than 18 months before you were told about them, you may not have to pay them (Section 20B, Landlord and Tenant Act 1985). We aim to issue demands and notices promptly to avoid this.

What should I do if I am struggling to pay my service charge?

Please contact us as early as you can. We will explain what is due and, where possible, discuss practical options. Leaving charges unpaid can lead to additional costs under the terms of your lease.

Ground rent

What is ground rent?

Ground rent is a payment made by a leaseholder to the freeholder under the terms of the lease. It is separate from the service charge and is usually a fixed or index-linked amount payable once or twice a year.

Who collects the ground rent?

Ground rent is owed to the freeholder (or the person entitled to receive it under the lease). Where we are instructed to collect it, we will issue a demand in the form the law requires, showing who to pay, how much and when.

Do I have to pay ground rent on a new lease?

For most new long residential leases granted on or after 30 June 2022, the ground rent is limited to a peppercorn, meaning no financial ground rent can be charged. Existing leases are not generally affected, and there are some exceptions, so please check your lease.

Can I be charged ground rent without a proper demand?

A ground rent demand must be in the prescribed form and give the required notice, so it is not payable until a valid demand has been issued. If you are unsure whether a demand you have received is valid, please contact us.

About Millhouse Ltd, TPO and complaints

Is Millhouse Ltd a member of a redress scheme?

Yes. Millhouse Ltd is a member of The Property Ombudsman (TPO) Scheme for Residential Leasehold Management, membership number T15103-0. TPO provides a free, independent service for resolving disputes between consumers and property businesses. Find out more at www.tpos.co.uk.

The Property Ombudsman - Residential Leasehold Management

What is The Property Ombudsman?

The Property Ombudsman is a free and impartial service that resolves disputes between consumers and property businesses. It is funded by its member businesses, not by the consumers who use it. Its work is guided by its Codes of Practice and by what is generally accepted as good practice in the industry.

Where can I read The Property Ombudsman's Consumer Guide?

The Consumer Guide explains what The Property Ombudsman does, when it can help and how to make a complaint to it. Download the TPO Consumer Guide (PDF).

How do I contact Millhouse Ltd?

You can call us on 07774 234 895, email info@millhouseltd.co.uk or use the form on our Contact page.

How do I make a complaint? (Complaints procedure)

We aim to provide a high standard of service, but if something has gone wrong we want to hear about it so we can put it right. This is how we handle complaints.

Stage 1: Tell us

Please raise your complaint with us in writing or by phone, giving your name, the property concerned and details of the problem.

All complaints, verbal or written, are recorded when they are made. If you would like someone to complain on your behalf, we will deal with any properly appointed representative.

Stage 2: Our response

  • We will acknowledge your complaint within 3 working days.
  • We will investigate it fully and fairly, and keep you informed of progress.
  • We will send you our final written response, including any offer we are making, within 15 working days of receiving your complaint. If we need longer, we will tell you why and when to expect it.

Stage 3: The Property Ombudsman

If you are not satisfied with our final response, or if eight weeks have passed since you first complained to us in writing, you can refer your complaint to The Property Ombudsman. This must be done within 12 months of our final response. The service is free to use, and our final response letter will include its contact details.

You can read about what to expect in the TPO Consumer Guide (PDF).