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Share of Freehold 3 people one not wishing to pay maintenance

12 replies

Muddle2000 · 09/11/2023 10:23

The lease states all must pay their dues Insurance is never a problem nor small jobs
I presume if 2 want or do not want then they win or would it have to go to a Tribunal?
I suspect a big job needed but one lessee will object

OP posts:
OldTinHat · 09/11/2023 10:26

If they don't pay, you can take them to court in accordance with the terms of the lease. Ultimately, they could lose their leasehold.

martinisforeveryone · 09/11/2023 10:28

Is the property self managed? How is that organised? Do you collect ground rent at all and regular service charge, or is it just ad hoc?

The Landlord ie however the freehold is held, issues a Section 20 consultation for major works.

Sorry being brief on phone.

Muddle2000 · 09/11/2023 11:01

There is no g rent payable at all Insurance organised by one person everything else is ad hoc

OP posts:
Ginmonkeyagain · 09/11/2023 11:53

Hmm - how big is the job? Is it urgent?

As people have in England share of freehold people still have a lease and that lease will set out rights and obliigations. So the freeholder should send out the s20 as normal, the lessee has the right to send in comments and set alternative suggestions. Taking in to account comments of all lessees the freeholder makes a descision and if it is to proceed with the works send out a levy.

If they refuse to pay you take them to court for breach of lease.

Do you know what their objections are?

Muddle2000 · 09/11/2023 14:02

There is no Freeholder just 3 sharing the freehold And yes it is a bit crap as no formal arrangments eg annual meetings sinking fund

OP posts:
Ginmonkeyagain · 09/11/2023 14:07

There is a freeholder - the three of you collectively are the freeholder. So you each have two hats - freeholder and lessee. With those two hats come rights and responsibilities.

You all sound out of your depth. I suggest the three of you seek advice before things get any more difficult.

martinisforeveryone · 09/11/2023 15:02

You need to check your lease.

When I said above 'however the Freehold is held' this referred to you all being both Leaseholders and part Freehold owners.

As an example, in our case the Freeholder is a limited company registered at Companies House and everyone who owns part of the property, or rather each individual property as there may be more than one owner per property, is an equal shareholder in the limited company.

There are only five properties. In the past a professional management company was employed and they set a yearly budget for joint expenses and collected a monthly service charge which covered those and left a surplus for a 'sinking fund' towards major repairs or expenditure going forward. More recently one of the property owners has taken on this role, obtaining quotes and paying bills and the other properties pay a little more service charge into the reserve fund, to cover the time and effort of the informal manager. Meetings are held as and when to go through the accounts and discuss any concerns but as all the funds are paid into a Management Company account and not the limited company, then the accounts filed annually at Companies House are very simple. When a property changes hands, so does the share in the limited company.

This also has the advantage of everyone paying their dues on an ongoing basis and sufficient funds accumulating for major repairs.

Ginmonkeyagain · 09/11/2023 15:07

Yep that is how we do it - but we are 64 flats so employing a management company is a must - no way would we expect someone to do it informally.

martinisforeveryone · 09/11/2023 15:21

Totally agree @Ginmonkeyagain that's far too big a task. It's also the case that everyone's resident, so has their eyes on what's happening all the time.

Ginmonkeyagain · 09/11/2023 17:04

As a warning to the OP we are still undoing the damage and neglect caused by previous lessees who thougth they could "manage it informally themselves" 🙄

Muddle2000 · 10/11/2023 10:33

Only 3 flats so Sols said not worth getting a company Each doing their own bit buying without surveys and then moaning later

OP posts:
Ginmonkeyagain · 10/11/2023 10:57

Hmmm. I agree you don't need full block management services but I suspect it will be more cost effective in the long run to pay for some professional advice and support. There are managing agents who charge per flat so it wouldn't be a whole lot of money.

As you are finding out those sorts of informal arrangements only really work if all parties get on and are in agreement as to what the money is spent on.

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