johno1066
16-10-2005, 18:47 PM
OK, i'm sorry this thread is quite long but hopefully, not only will it serve to ensure justice is done but it also serves to help others.
My parents own a long lease (over 65 years to run) on a property on the South Coast and they are equal shareholders of a ltd Company that own the freehold. There are to the best of my knowledge 8 other leasholders, 6 of whom own shares in the ltd company.
The ltd Company obviously charge a modest service charge for the maintenance of the building. Under new laws (about 3 years ago or so) it was deemed necessary to undertake building works to the whole building which included various fire safety regulations etc. Under the terms of the leases this work was carried out to the tune of £8000 per leaseholder, with the relevant agreement. Not only has this work satisfied the authorities, the work has also improved the value of the individual leases by twice if not three times that amount.
Although noone in reality could afford the work, funds were met and those who really couldn't afford the money were offered time to pay, in all this was an amicable arrangement. However, one leaseholder decided that she did not wish to pay at all and subsequently legal proceedings initiated. This leaseholder put in a counter claim (on legal aid), in that she couldn't live in her flat because water damage had made her flat uninhabitable, even though this was not disclosed at the time.
The reality was, that she had sublet the flat to tenants and was staying with friends, the water damage she refers to, was as a result of her leaving windows open (the flat is a seafront one) and mysteriously, when the counter claim went in, wallpaper started peeling from the walls and the place was trashed. She is however still liable for the £8000.
Obviously in court, my parents had to prove that she had damaged the property and that tenants had been living at the flat when she said it had been uninhabitable. Obviously they couldn't and her lying under oath was accepted.
Essentially we had a number of obstacles:
1.A crap solicitor
2. A leaseholder who had legal aid, was able to lie through her teeth under oath and get away with it, she also had a solicitor who has already been disbarred from criminal proceedings, acting in her defence and new the 'system' well.
3. Poorly advised by a property management company who are supposed to be advising the shareholders on this.
Now, I where we need help is with the following:
1. Her solicitor put a charge on the freehold which would be valued at £1750 due to the current groundrent x10.
The ltd company which owns the freehold is being propped up by the shareholders, they aren't paying any more of their own money at the moment so technically the company could become/is insolvent as a result. Would the dissolution of the company protect the freehold in that it would not be worth anything to the liquidator, or could the freehold be auctioned off for alot more than £1750, ie the gorundrent value?
2. Could we sell the freehold to another company? although the charge is for about £20k, would £1750 partially satisfy the debt or would this be considered fraud?
3.The shareholders have already paid £18000 out of their own money for legal fees etc. Could they setup another company, sell the debt onto that company then upon doing so, become the primary creditor, as such will be taken into consideration first?
4.Know of a 'decent' solicitor (i've yet to meet one personally but i'm ever hopeful) or litigant who would be able to help (fees obviously paid). I would be very grateful.
5. Does anyone know whether Bona Vacantia could help?
My parents own a long lease (over 65 years to run) on a property on the South Coast and they are equal shareholders of a ltd Company that own the freehold. There are to the best of my knowledge 8 other leasholders, 6 of whom own shares in the ltd company.
The ltd Company obviously charge a modest service charge for the maintenance of the building. Under new laws (about 3 years ago or so) it was deemed necessary to undertake building works to the whole building which included various fire safety regulations etc. Under the terms of the leases this work was carried out to the tune of £8000 per leaseholder, with the relevant agreement. Not only has this work satisfied the authorities, the work has also improved the value of the individual leases by twice if not three times that amount.
Although noone in reality could afford the work, funds were met and those who really couldn't afford the money were offered time to pay, in all this was an amicable arrangement. However, one leaseholder decided that she did not wish to pay at all and subsequently legal proceedings initiated. This leaseholder put in a counter claim (on legal aid), in that she couldn't live in her flat because water damage had made her flat uninhabitable, even though this was not disclosed at the time.
The reality was, that she had sublet the flat to tenants and was staying with friends, the water damage she refers to, was as a result of her leaving windows open (the flat is a seafront one) and mysteriously, when the counter claim went in, wallpaper started peeling from the walls and the place was trashed. She is however still liable for the £8000.
Obviously in court, my parents had to prove that she had damaged the property and that tenants had been living at the flat when she said it had been uninhabitable. Obviously they couldn't and her lying under oath was accepted.
Essentially we had a number of obstacles:
1.A crap solicitor
2. A leaseholder who had legal aid, was able to lie through her teeth under oath and get away with it, she also had a solicitor who has already been disbarred from criminal proceedings, acting in her defence and new the 'system' well.
3. Poorly advised by a property management company who are supposed to be advising the shareholders on this.
Now, I where we need help is with the following:
1. Her solicitor put a charge on the freehold which would be valued at £1750 due to the current groundrent x10.
The ltd company which owns the freehold is being propped up by the shareholders, they aren't paying any more of their own money at the moment so technically the company could become/is insolvent as a result. Would the dissolution of the company protect the freehold in that it would not be worth anything to the liquidator, or could the freehold be auctioned off for alot more than £1750, ie the gorundrent value?
2. Could we sell the freehold to another company? although the charge is for about £20k, would £1750 partially satisfy the debt or would this be considered fraud?
3.The shareholders have already paid £18000 out of their own money for legal fees etc. Could they setup another company, sell the debt onto that company then upon doing so, become the primary creditor, as such will be taken into consideration first?
4.Know of a 'decent' solicitor (i've yet to meet one personally but i'm ever hopeful) or litigant who would be able to help (fees obviously paid). I would be very grateful.
5. Does anyone know whether Bona Vacantia could help?