Block of 5 flats- one lessee refuses to pay service charge

[james14]

I'm hoping somebody can give me some advice... Our building is divided into 5 flats each flat with its own share of the freehold. There are numerous problems with the building, rotten rear staircase, front elevation rendering/painting not done/patches of damp in communal areas to name just a few.

4 out of 5 of the flats pay the maintenance charges every month BUT 1 flat owner refuses to do so and refuses to enter into discussions regarding the essential maintenace needed on the building. (he says he will pay when he sells) no use to us it could be years and send the property into disrepair in the mean time!

Does anybody know of any way in which we, as in the other flat owners and i can do anything to make the other flat owner pay up.... this has been going on for 2-3 years now and the building is suffering as a result.

The management agent sits on his hands and says there is nothing that can be done, and that no work can progress due to the deficit from the other flat.

HELP PLEASE?????????

[jeffrey]

1. Who owns the freehold reversion? Is F a company jointly owned by all five lessees?
2. Who engaged (and now employs) the M/Agent?
3. In each lease, is there a covenant by F to enforce covenants (against a defaulting lessee) at the demand of a complaining lessee [you]?

[Corinne Tuplin]

Hi there,

If all else fails, you may decide to undertake the necessary works and then issue a small claim in the County Court for repayment. Obviously this should be with the agreement of the other freehold owners and a letter before action despatched in advance. Also, if the freehold is owned by a Freehold Company, you should check compliance with Memorandum and Articles of Association before proceeding further.

The following link may be of interest:-
https://www.moneyclaim.gov.uk/csmco2/index.jsp

Kind regards,


CORINNE TUPLIN
SOLICITOR
PRO-LEAGLE
www.proleagle.com

[james14]

Hi,

There is no freehold company just 5 flats each one owning 1/5th share of the freehold, the managing agent was appointed following the death of the owner of one of the flats as he used to do the management part.

[jeffrey]

Who owns f/r, then? Five people cannot jointly own it: s.34(4) of Trustee Act 1925.

[james14]

where would i find out this information, i dont actually know what freehold reversion is by the way

[Gordon999]

1. Go to Land Registry Online ( .gov.uk ) and type in your address or postal code for buying the property title .

You will be offered a choice of leasehold ( your property ) or freehold title to buy for 4 pounds. .

If you buy the freehold title, you will see the name of who actually owns the freehold. ( Jeffrey's point is that no more than 4 names is allowed on the property title by Land Registry ) .

2. Does wording in your lease say each flat must contribute 20% to the service charge account ? Do your agent produce a service budget at start of year when sending out demands ?

Try sending a copy of the demand to non-paying flat's mortgage lender and say your borrower's flat is not insured until the service charge is paid.

[jeffrey]

where would i find out this information, i dont actually know what freehold reversion is by the way
1. Website is http://www1.landregistry.gov.uk.
2. 'Freehold reversion' simply means a freehold estate that is subject to leases (one or more).
3. Let us know what you find, and please reply to the three points in my post #2.

[james14]

I have downloaded the title register and of course you are right there are only 4 names listed as the registered owners. The owners including myself are the owners of 4 out of the 5 flats.

I can find nothing in any of my paper work with a reference to the owner of the freehold reversion except the following written in the lease

"Section 196 of the law of propery act 1925 relating to the services of notices shall apply hereto.
The landlord hereby covenants with the tenant (but not so as to be liable in damages after she shall have parted with all interest in the REVERSION expectant upon this demise")........

A budget for the year is sent out annually i will contact our so called managing agent and ask for the details of the mortgage lender of the non paying owner and send a letter to them.

In the mean time i'll keep banging my head against a brick wall

[jeffrey]

How many leases are noted on the f/r title's Schedule of Notices of Leases (or, if none, on its Charges Register)?

[james14]

I apologise if i wasnt clearer the first time, i think the penny has just dropped, the owners of the flats before i bought mine clubbed together and bought the freehold from the original land owner, so now there is no ground rent on the property.... the lease that exisits is just for mortgage purposes and was transferred not ammended at the time of sale.

I have read and re read it many times and i can see no comment regarding action should one party fail to pay any maintenance contribution.

[james14]

On the Schedule of notices of Leasees there are 5 names.

[dominic]

I have downloaded the title register and of course you are right there are only 4 names listed as the registered owners. The owners including myself are the owners of 4 out of the 5 flats.

I can find nothing in any of my paper work with a reference to the owner of the freehold reversion except the following written in the lease

"Section 196 of the law of propery act 1925 relating to the services of notices shall apply hereto.
The landlord hereby covenants with the tenant (but not so as to be liable in damages after she shall have parted with all interest in the REVERSION expectant upon this demise")........

A budget for the year is sent out annually i will contact our so called managing agent and ask for the details of the mortgage lender of the non paying owner and send a letter to them.

In the mean time i'll keep banging my head against a brick wall

If the managing agent doesn't or refuses to provide you such information, you can find it yourself by doing a land registry search of the leasehold interest of the flat in question.

On the "charges register" this will list and name the mortgagee(s) which have a security interest in that flat.

[jeffrey]

On the Schedule of notices of Leasees there are 5 names.
No, there are five entries (one lease per flat). Names don't appear.

[james14]

Your quite right there are no names of persons just names of the 5 flats. 1st floor flat 3 etc...