Who raised the roof?

[friednoodles]

in a pickle here with my neighbour who shares the freehold on a building.

I own the upstairs flat and neighbour owns downstairs. we share the freehold of the building.

The lease say’s that we’re both equally responsible for the maintenance & upkeep of the building. the exterior & roof etc.

Both of us purchased our respective flats pretty close to each other time wise, perhaps a year apart, with the knowledge that the main roof needed an overhaul.

Last year we both tried to get the repair/ replacement of the roof started and gathered quotes from various companies.

I think we had about 4 to 5 quotes in all. Ranging from 14k up to 40k.

Our downstairs neighbour wanted to go with the 14k company whilst we wanted to go with a company that had official credentials and was with a registered body.

Our neighbours suddenly announced to us that they will be going away and wanted to get the roof work done asap. and had decided to use the 14k company. They had arranged with the company a date to start the work and the first we knew about it was an email from them where they asked us to pay half of the 50 deposit that the 14k quoting company needed.

The invoice from the 14k company is addressed to them/ their address and requests the 50% deposit.

We weren’t ready to accept at this time, because there were a few things about the quote that we weren’t happy with, i.e. the insulation was misquoted. They advised that the insulation was to be included in the quote.

Coincidentally I had arranged with the 14k company to meet the director on the weekend before the Monday that the neighbours had arranged with the 14k company to start work and to install the scaffolding, and go around with him to view some examples of their previous work. It was during this meeting that we discovered that he misquoted on the insulation.

It was also during this meeting that I started to feel uneasy about using his company to do the work.

Come Monday when the scaffolders were supposed to turn up. it was no surprise to me when they didn’t.

I contacted the neighbours in the middle of this week to advise the neighbours that I did not wish to use this company. To which they responded asking me if I had paid my share of the deposit.

Off course I told them that I had not paid the deposit as I had never agreed to use them.

I encouraged them to try and get their deposit back from the company.

It is now 1 year later and the 14k company has now ceased trading and the neighbours can’t get their deposit back.

There is some other work that needs doing to some of the other roofs, Bay & flat roofs. however my neighbours are refusing to go ahead until we refund them their lost deposit.

I believe their intention is to take us to court to recover their lost funds.

In all fairness if we never agreed to using this company, can we be blamed for them losing their deposit?

Really appreciate any views, opinions.

Thanks

Well if they paid the deposit without your agreement I can't see how you are liable but what procedures do you have in place for company expenditure? You don't own a share of freehold you own a share of a company that owns the freehold. Who decides expenditure and how often do you pay maintenance and into what account? Sounds like you don't have these procedures in place and need to establish them. Personally I would prob offer to pay half that they are out of pocket (£1,750???) Purely to ensure no bad feeling, without accepting liability. I would also get advice on how to run a management company it's quite straightforward but a real can of worms if not set up well. Who does the company accounts?

Sounds like there are only two of them - not sure there would be a management company then. I'd take legal advice.

You don't have to set up a company if you own share of freehold. It's just written in the title deads as the owners names...

I would seek legal advice. I can't see how you are liable for their deposit of you didn't agree to using the company - which it sounds like you were right about!!

I think you should seek legal advice too. Check if you have emails etc to and from your neighbours, as if you have evidence you disagreed in writing to their choice of roofer (even when they originally looked at them) it should be easier to sort.

Going forward it might be wise to setup a bank account for repairs expenses that you both pay into but needs both signatures to make a withdrawal. That would ensure you both agree to any expenditure.