We are looking to purchase a leasehold flat in block of 44 in total. We would own a share of the freehold, which is held by a management company.
The freehold shares are divided between the 44 flats, however one particular owner is in possession of more than 50% of these flats and is hence a majority shareholder in the management company.
This owner is the original developer, a man and wife team who make up a limited company.
The build is 16 years old and aimed at the ‘luxury’ holiday rental market. It’s price is competitive. The current owner bought the flat 12 months ago.
I’m feeling a little concerned about any implications of a majority shareholder. Does anyone know what sort of legalities might be entailed, for example, I’m assuming they are basically able to dominate all decision making on behalf of the mgt company? Could they for example raise the management fee? Insist we made certain changes (allowing dogs could be an example), insist that certain repairs and replacements used certain workmen/products?
Thanks