View Full Version : Programmed repairs
Meridian
06-01-2010, 11:58 AM
To set the scene: 4 long-leaseholders in a converted house all with equal share for external repairs. The freeholder has given notice to carry out programmed repairs to roof, paintwork and rainwater goods. No problems with what needs doing and the notice of works and builder's estimate seem ok. BUT he wants full payment for the work upfront and it's a lot.
We're happy to have works done, but not happy in paying the full amount before any work begins (he's not a bank and we've got no guarantees the work will be done). We've offered some upfront, but he says that can't be done (for the same reason - he can't guarantee we'll pay him at the end)
Questions are:
1. Can he demand full payment?
2. The roof is in a shocking condition and needs repair, but he now says he won't repair it, because a notice has been served to renew it.
3. Because of the need for repairs and the notice being served why won't he take legal action? He says he won't because he can't afford to.
It seems as if the house can be allowed to crumble. What do you reckon can be done?
Poppy
06-01-2010, 13:07 PM
Read the lease. Does it specify how the service charge is to be demanded by the freeholder?
... he's not a bank ...Exactly!
If you want to stagger payment, you are basically asking for credit from your freeholder. You should expect to incur a finance charge or take out a personal loan.
In probably the majority of leases, there is provision for the freeholder to collect the full amount from the lessees in advance of works commencing.
Be careful, the building will crumble and it may become difficult to sell the flats if the lessees do not pay for repairs.
andydd
06-01-2010, 17:46 PM
The majority of leases demand payment in advance.
I've always paid (or at least its been demanded) in advance but only recently have i found out that my lease has indeed no such clause but I'm aware I'm in a minority. Time to dig yours out.
Andy
Meridian
07-01-2010, 07:53 AM
Fair enough, but the problem with one person paying up is knowing if all of the leaseholders are going to pay.
Wouldn't it be the freeholders duty to at least threaten court action for non-payment of the fee?
And in the meantime shouldn't basic repairs still be done to keep it weathertight?
Poppy
07-01-2010, 10:08 AM
Why do you think it is your problem to know whether your fellow lessees are paying? If your fellow lessees pay late, this is a matter for the freeholder.
Regarding basic repairs or any repairs, if you spot a problem you should inform the freeholder and encourage him to act in an appropriate manner.
sgclacy
07-01-2010, 12:40 PM
Try and suggest the following:-
Pay all the moneys to a solicitor/chartered surveyor which the lessees collectively appoint , who will hold the moneys in a client account who will release payment against invoices raised by the freeholders surveyor.
This way you know monies will only be released aginst works done. The freeholder will have certainty that the moneys will be paid if he carries out the works properly.
Poppy
07-01-2010, 12:51 PM
Hmm. Additional expense of a solicitor and surveyor on top of repairs/renewals/maintenance in a block of four. From what Meridian has written, do you really think that they want to pay or that it is appropriate in a building of this size?
Gordon999
07-01-2010, 13:43 PM
The leaseholders should make an effort to get the roof replaced or repaired as a damaged roof can knock 10-20 % off the market value of all of the properties in the building. A new prospective buyer may not be able to get a mortgage on a property with defective roof.
Meridian
07-01-2010, 15:24 PM
Thanks. My main problem is not whether the freeholder is trustworthy or not, but the fact that if just one of the leaseholders doesn't pay in full the freeholder has said he won't do anything about it (ie take them to court). The rest won't pay up with this in mind - giving over £10,000 for it to sit in the freeholder's account, possibly for ever.
I think what I'd like to know is can a leaseholder take legal action to enforce a Notice served by the freeholder? In the absence of this can a leaseholder force patch repair works until the roof is replaced (at some unknown future date)? Obviously, my main concern is the delapidation of the roof, but me paying up in full gets me nowhere.
At present the freeholder is happy to do nothing at all, but I can't enforce a notice served by the freeholder against others.
Poppy
07-01-2010, 15:28 PM
Read the lease. Does it have a clause for the freeholder to enforce lessees’ covenants on behalf of other lessees?
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