Is anyone in a shared freehold: how do you manage your property??

[TinyGoldfish]

The property we are in the process of buying is one house split into two flats and it has a 50/50 shared freehold.

The management of the building all seems very laid back/ad hoc: If any maintenance issues come up they just split the bill 50/50 and in the meantime they each put £50 per month into a shared account to build up a buffer.

I'm a bit wary of opening up a shared account with a neighbour who I don't know and haven't met. What if they take all the savings?

Is there any simple way of sorting this? Does anyone have any advice or experience here? I'm so confused!

You can set the bank account up so two signatories are needed on a cheque.
It's usual to form a company that holds the freehold, and each to hold an equal share. and the bank account will be in the company name. You need to submit annual accounts to Companies House and an annual statement -not so much hassle as it sounds really.

I have a shared freehold. We don't have an account but just pay bills as and when. Having a buffer sounds good I just have to live hand to mouth at the moment so saving extra isn't a possibility for me.

We have this as well and just split the bills when they come in. One of the flats takes responsibility for submitting annual accounts and annual return. Not that hard as we just to a micro account which is quick.

Thanks everyone, that's all really helpful.

Follow up question: How do I go about creating a company?

Have a look at the companies house website

IMO, I don't think that you need to set up a company.

If there are just two properties owning the freehold, it will be as simple to agree repairs on an as hoc basis and pay for them out of your own funds. I think management companies are more appropriate when there are multiple units and a service charge.

The lease in place should define your obligations. Any dispute with your neighbour would occur whether or not there was a company in place.

Speak to your solicitor about what arrangements are already in place. They will make these essential enquiries as part of the buying process.

I've already spoken with my solicitor and explained what's already in place in my OP Pinbasket

I agree Zampa, I'm leaning towards not setting up a company. Especially if we can put limits on the joint account (to have two signatures etc).

But I will look into the companies house website - thanks mamma.