http://www.landlordzone.co.uk/forums/ en Thu, 23 May 2013 19:20:58 GMT vBulletin 60 http://www.landlordzone.co.uk/forums/images/misc/rss.png http://www.landlordzone.co.uk/forums/ http://www.landlordzone.co.uk/forums/showthread.php?55432-Sale-of-Freehold-building-with-residential-tenants-Section-5-notice&goto=newpost Thu, 23 May 2013 17:01:19 GMT I am considering selling the freehold of a building with residential tenants. I have agreed terms and the price to sell the freehold to a company owned by the tenants. My solicitors have said that we must serve a section 5 notice on all the residents, but i dont see the point as i have already... I am considering selling the freehold of a building with residential tenants. I have agreed terms and the price to sell the freehold to a company owned by the tenants. My solicitors have said that we must serve a section 5 notice on all the residents, but i dont see the point as i have already agreed to sell it to the residents nominated company. Is the section 5 notice procedure obligatory, even though the tenants will just reply accepting the terms and nominating the purchaser I have already agreed to sell the building to? ]]> Long Leasehold Questions tricky6298 http://www.landlordzone.co.uk/forums/showthread.php?55432-Sale-of-Freehold-building-with-residential-tenants-Section-5-notice http://www.landlordzone.co.uk/forums/showthread.php?55414-Getting-rid-of-a-Director-for-breach-of-lease&goto=newpost Thu, 23 May 2013 08:02:46 GMT We are a share of freehold company of 10 flats with 4 directors. Unfortunately one director is a rogue director who only does what he wants to do. The latestis that he refuses to pay for the increased service charge (£100 per year) from 2010 because he states it was not agreed. He was present at... We are a share of freehold company of 10 flats with 4 directors. Unfortunately one director is a rogue director who only does what he wants to do. The latestis that he refuses to pay for the increased service charge (£100 per year) from 2010 because he states it was not agreed. He was present at the meeting when it was decided to increase the charge. He was the only director to vote against it. He is the only leaseholder who has not paid it.

There has not been a sinking fund raised even though the lease allows for it. We need to do major works, the S20 has been sent, but we know he will not agree to it or pay for it. So we will have to go down the 146 route to get paid.

We would like to get him removed as a director as he is clearly failing as a director in looking after the interests of the block. Our Company articles allow for us to get rid of a director if he sells. As he will be in breach of the lease can we vote to get rid of him? ]]> Long Leasehold Questions bbva http://www.landlordzone.co.uk/forums/showthread.php?55414-Getting-rid-of-a-Director-for-breach-of-lease http://www.landlordzone.co.uk/forums/showthread.php?55399-Gas-safety-in-block-of-maisonettes-some-owner-occupied&goto=newpost Wed, 22 May 2013 13:48:33 GMT I have posted here rather than in the gas safety area as i understand that tenanted flats need an annual CP12 but owner occupied - with or without lodgers do not need CP12. of the 8 flats, 5 are rented out and have CP12s inplace, 2 are owner occupied and one is owner occupied with a lodger. ... I have posted here rather than in the gas safety area as i understand that tenanted flats need an annual CP12 but owner occupied - with or without lodgers do not need CP12.

of the 8 flats, 5 are rented out and have CP12s inplace, 2 are owner occupied and one is owner occupied with a lodger.

Can we as FMC insist on receiving the 5 CP12s and a copy of the last boiler service invoice from the other 3 ? I understand that the owner of the one with the lodger gets her builder father to service her boiler but he is not 'Gas Safe' but as he is not being employed does not need to be !!! ]]> Long Leasehold Questions billericayboy http://www.landlordzone.co.uk/forums/showthread.php?55399-Gas-safety-in-block-of-maisonettes-some-owner-occupied http://www.landlordzone.co.uk/forums/showthread.php?55386-What-Proportion-of-Building-Insurance&goto=newpost Wed, 22 May 2013 08:39:30 GMT Hi everyone, downstairs there are 2 one bed flats ( we own one of them), ours was bought for 70k a few months ago, other is on market for 80k. Upstairs is one 3 bed on market for 130k. The upstairs one has same footprint as the 2 downstairs ones combined. The freeholder has invoiced us for one... Hi everyone,
downstairs there are 2 one bed flats ( we own one of them), ours was bought for 70k a few months ago, other is on market for 80k. Upstairs is one 3 bed on market for 130k. The upstairs one has same footprint as the 2 downstairs ones combined. The freeholder has invoiced us for one third of the buildings insurance.
Shouldnt that be a quarter?

Would appreciate any advice. ]]> Long Leasehold Questions dominicwest http://www.landlordzone.co.uk/forums/showthread.php?55386-What-Proportion-of-Building-Insurance http://www.landlordzone.co.uk/forums/showthread.php?55377-ARMA-Q-Regulation-of-Managing-Agents&goto=newpost Tue, 21 May 2013 16:45:17 GMT Interesting piece of the regulation of managing agents.

http://leaseholdlife.info/index.php/...ore-protection

What I found amusing was the comment "Leaseholders should be able to expect a quality service when it comes to the management of their home. If they use an unregulated managing agent, they could be opening themselves up to poor practice"

If THEY !, now unless you have an RTM in place a LH will have no say on who the FH chooses as a MA and in my case they are one and the same.

Andy ]]> Long Leasehold Questions andydd http://www.landlordzone.co.uk/forums/showthread.php?55377-ARMA-Q-Regulation-of-Managing-Agents http://www.landlordzone.co.uk/forums/showthread.php?55348-Can-freeholder-stop-buyer-from-buying-flat&goto=newpost Mon, 20 May 2013 16:29:20 GMT I refer to web page http://www.fridaysmove.com/10-insider-tips-preparing-leasehold-property-sale/37 Item 3, which states :- You should ask the agents to make sure that the buyer puts in hand obtaining references from their bank as well as a professional reference. This will save delaying... I refer to web page
http://www.fridaysmove.com/10-inside...operty-sale/37

Item 3, which states :-
You should ask the agents to make sure that the buyer puts
in hand obtaining references from their bank as well as a
professional reference. This will save delaying the transaction
later on. The reference from the bank should confirm that the
buyer is able to meet the annual service charge.

If the freeholder decides, from information received, that a
potential buyer of a flat would be unable to meet the next 3
years service charges, or would have extreem difficulty in
meeting the projected costs,
can the freeholder refuse to transfer the lease ?

One objection could be that extreem difficulty had been experienced
by one or two current leaseholders striving to meet the previous
and current service charges, and to add another that would be
unable to pay could bankruput us, could we refuse on those grounds
not to transfer the lease ?

Maybe we had already been to court for forfeiture, ( monies paid
so forfiture was not carried through ) and to add another expensive
forfeiture aplication in 12 months time, was not financialy viable .

R.a.M. ]]> Long Leasehold Questions ram http://www.landlordzone.co.uk/forums/showthread.php?55348-Can-freeholder-stop-buyer-from-buying-flat http://www.landlordzone.co.uk/forums/showthread.php?55347-Section-20-notice-for-Major-Works-completed-in-2010-still-waiting-for-a-bill&goto=newpost Mon, 20 May 2013 16:26:10 GMT I'm quite new to all this - so bear with me.

I am the leaseholder of an old council flat and was served with a Section 20 notice some years ago for major works. So far so good.

The works started in 2010. Half way through (without serving as Section 20) the Council decided to do work to the roof and said that there was no time to serve a Section 20 - but that the work was going to cost more than £250.

Nearly 3 years later, I still haven't had the bill - the work wasn't completed properly and despite reporting it at the time, nothing has been done to rectify.

I'm also about to sell my flat, and although I have saved up enough money to pay the outstanding bill, I do wonder how long it should take for a bill to come! I've been chasing it for over a year and getting nowhere. It's not like I WANT to pay it, but it's a bit stupid now!

Any advice? ]]> Long Leasehold Questions Deborah1925 http://www.landlordzone.co.uk/forums/showthread.php?55347-Section-20-notice-for-Major-Works-completed-in-2010-still-waiting-for-a-bill http://www.landlordzone.co.uk/forums/showthread.php?55346-How-do-I-sell-a-flat-over-a-shop&goto=newpost Mon, 20 May 2013 15:47:04 GMT I own a freehold detached village property that is the village convenience store on the ground floor and has a two bedroom flat above with its own entrance and garden. I purchased the property so my son who already owns another village store could rent the shop premises from me and run with his... I own a freehold detached village property that is the village convenience store on the ground floor and has a two bedroom flat above with its own entrance and garden.
I purchased the property so my son who already owns another village store could rent the shop premises from me and run with his other store.
In order to release some capital I would like to sell the flat and keep the shop.
Which is the best route to go, sell the flat leasehold and keep the freehold, change the flat and shop to leasehold and have a freehold owned by both flat and shop owners, or is their some other way?
I am a complete novice so any advice would be welcome or could someone recommend a firm that could help me in the Northamptonshire area? ]]> Long Leasehold Questions chrysalis318 http://www.landlordzone.co.uk/forums/showthread.php?55346-How-do-I-sell-a-flat-over-a-shop http://www.landlordzone.co.uk/forums/showthread.php?55341-Requirement-to-audit-service-charges-accounts-where-lease-is-silent&goto=newpost Mon, 20 May 2013 09:45:28 GMT I have been going around in circles on this question, and nowhere (including previous postings here) can I find a very specific answer. ACCA Technical Factsheet 172 (2011) sort of addresses the problem but is open to much interpretation, and it is not clear what is mere guidance and what has the... I have been going around in circles on this question, and nowhere (including previous postings here) can I find a very specific answer. ACCA Technical Factsheet 172 (2011) sort of addresses the problem but is open to much interpretation, and it is not clear what is mere guidance and what has the force of law.

So, if we have a specific scenario:

a) 8 Flats (beyond the threshold where audit is mentioned).
b) Lessees own the freehold Company in equal share.
c) Accounts are straightforward (5 ledger entries per year outgoing)
d) Company House accounts are nul (dormant) and unrelated to Service Charge Accounts.
e) Lease (circa 1980) is silent on the need for any form of audit, or the possibility of recovery of the fee for such audit (no clear obligation of freeholder within the lease would allow for recovery).
f) The cost of audit itself will double the service charge.

If Service charge requests are submitted in the absence of an "audit", but merely with the usual directors statement and fully invoiced accounts then:

i) Are service charges technically non-payable merely on the basis of the absence of "audit"? Would this absence in an of itself form sufficient reason for refusal to pay a service charge to be upheld.

ii) If an audit is not compulsory, then I assume it would/could become compulsory if a single lessee demands such an audit? Correct? If that were the case, then who would pay for this audit (given that it would have to be paid for by all lessees in the absence of a clear provision within the lease that makes audit recoverable).

iii) If an audit is somehow required, is there some mechanism to do a valid audit more cheaply than accountants wish to charge to review 5 invoices?

[As a ranting aside, the actual audits I have experienced are not worth the paper they are written on. Gross integrity lapses and discrepancies are simply signed off by the auditors, minor problems are massaged, and the audit then acts as a barrier to lessees who wish to explore the facts of discrepancies ("we have been audited so go away"). It would seem to me that these audits benefit no one - far more effective would be the absolute right to view invoices and to explore the facts underlying those invoices - and then to go to the police/courts if necessary. This is what regulation is all about - hiding facts behind a headline.] ]]> Long Leasehold Questions AndrewDod http://www.landlordzone.co.uk/forums/showthread.php?55341-Requirement-to-audit-service-charges-accounts-where-lease-is-silent http://www.landlordzone.co.uk/forums/showthread.php?55339-Purchasing-a-Freehold-of-a-property-on-a-99-year-lease&goto=newpost Mon, 20 May 2013 09:16:24 GMT I hope somebody can help here as I'm getting a bit confused.

I am looking to buy the freehold of a few properties (houses)which have been let out on 99 year leases.

A couple were let out in the 30's and the lease runs out shortly - 20 years or so to run.

They only attract a small ground rent of a few pounds a year.

Am I right in assuming that because the value of rent is so small I am only able to value any potention sale of the Freehold under enfranchisement under Section 9 (1) – where the house qualifies under Section 1 it will be valued according to the original valuation basis - hence LAND ONLY Also am I entitled to marriage value?

Would appreciate any help. ]]> Long Leasehold Questions landloste http://www.landlordzone.co.uk/forums/showthread.php?55339-Purchasing-a-Freehold-of-a-property-on-a-99-year-lease http://www.landlordzone.co.uk/forums/showthread.php?55331-Fears-regarding-lease-of-property-I-plan-to-buy&goto=newpost Sun, 19 May 2013 19:20:01 GMT Hi All,

I am in the process of buying a property in Greater London (small Victorian house converted in 2 flats), all was going very well, until I recently got my hands on the lease. Basically I am having a hard time knowing how "normal" some of the clauses are and would love to have some opinions before doing a costly mistake!

1. Increase of ground rent.
The lease was extended in 2007 by 90 years so no issue there but I am scared that ground rent increase may be excessive. It is currently of £200 until 2017, but will be redefined every 10 years to a yearly sum equal to either one six hundredth of the capital value of the demised premises at date of review or a sum which is 50% above that charged before the review, whichever is the greater.
The capital value would be determined by a valuer whose cost would be at my charge.

2. Funds in advance / Expenditure
To pay the lessor on demand (although the lessor shall not be obligated to make such a demand) such sums as the lessor considers reasonably necessary on account of works to be conducted in accordance with the Lessors obligations hereunder if the Lessor considers it prudent to conduct such works prior to being able to request sums in accordance with the preceeding clauses.
My understanding of this is that it basically means I have no control over the lessor's planned expenses.

3. Permitting Entry - This one really scares me
To sum it up the clauses says that the lessor and his agents have a right of entry at any reasonable times on prior notice to enter and examine the premises to ensure nothing has been done which constitutes or may in the reasonable opinion of the Lessor tend to constitute a breach of any of the covenants (...) and to pay an hourly charge for the Lessor's time spent in conducting such annual (or such that the Lessor may reasonably require) inspection and preparing a report for the Lessee at an hourly rate equivalent to 25% of the ground rent payable in the year of inspection.
I am not surprised by the right of visit really but more by the fact that I have to pay to be disturbed and have no control over it all.

4. I have to keep carpet (or equivalent) even though this is a ground floor.

As I said above I am as many I guess not very familiar to all this but part of the above sounds really aggressive to me. I got some advice from ny solicitor but I guess having some extra suggestions would be very nice.

Thank you! ]]> Long Leasehold Questions datester http://www.landlordzone.co.uk/forums/showthread.php?55331-Fears-regarding-lease-of-property-I-plan-to-buy http://www.landlordzone.co.uk/forums/showthread.php?55327-Local-authority-is-leaseholder-can-they-enfranchise&goto=newpost Sun, 19 May 2013 16:21:33 GMT Just a quickie. A long lease s coming to an end on a property and the leaseholder is a local authority? Can they enfranchise and force the sale of the freehold? Just a quickie. A long lease s coming to an end on a property and the leaseholder is a local authority? Can they enfranchise and force the sale of the freehold? ]]> Long Leasehold Questions landloste http://www.landlordzone.co.uk/forums/showthread.php?55327-Local-authority-is-leaseholder-can-they-enfranchise http://www.landlordzone.co.uk/forums/showthread.php?55325-Missed-service-charge-payment-by-the-flat-owner&goto=newpost Sun, 19 May 2013 15:22:35 GMT Hi, I am one of the volunteer director of the company who manage a block of flats. I am an owner of one of the flat in the block. One of the owner, who has let her flat, has missed many payments of the monthly service charge. After many reminders, it has got to a stage where we (the directors)... Hi, I am one of the volunteer director of the company who manage a block of flats. I am an owner of one of the flat in the block.
One of the owner, who has let her flat, has missed many payments of the monthly service charge. After many reminders, it has got to a stage where we (the directors) feel we need to recover the money by taking her to court. Can we take her to a small claims court without further emails/letters? OR is there an alternative?

Many thanks ]]> Long Leasehold Questions BazD http://www.landlordzone.co.uk/forums/showthread.php?55325-Missed-service-charge-payment-by-the-flat-owner http://www.landlordzone.co.uk/forums/showthread.php?55314-Help-with-tricky-issue-concerning-a-fellow-Directors!&goto=newpost Sat, 18 May 2013 16:56:49 GMT We need some help and advice please! We own the share of freehold, 1 share of 8 (8 flats). ALL 8 shareholders are Directors and there is one Director who also is Secretary. It seems that the Secretary (+ husband) (Both in their 80s and lived at the flat since first converted in the 1970s) think... We need some help and advice please! We own the share of freehold, 1 share of 8 (8 flats). ALL 8 shareholders are Directors and there is one Director who also is Secretary.

It seems that the Secretary (+ husband) (Both in their 80s and lived at the flat since first converted in the 1970s) think they run the block along with another Director who has been in residence for 11 years but only a Director for 1, whom acts as Secretary due to age of the actual Secretary!

We are trying to acquire a small store room that is communal and make it part of our flat. It is very damp, disused and has a door way leading directly from our flat and another doorway leading out to the light well that runs along side the building (end of terrace). It is useful to us in that it would give access to another small store that we aim to put a small toilet in, and would make the layout of the flat better.

The store is also causing damp in our flat and remedial works would be the responsibility of all the freeholders jointly.

The current layout of the flat is illegal (Grade 1 listed and no planning consent!) and we have been told we need to reopen the door leading into the store to comply with Heritage etc. We have now full planning consent to refurbish the flat to its former glory and are soon to start work.

However, There have been 2 meetings now, held in our absence and we were told by the acting Secretary we were not welcome and were deliberately not told of time, date or venue. Minutes have been published for both meetings in the Company name. The first meeting was attended by only the 2 Directors as above and 1 other, a non-resident owner who is good friends with acting Secretary.

In the first meeting they asked for valuations to be taken on the store room and full plans etc produced. We paid for 2 valuations, 1 instructed by us and one by 'the company'.

We offered to pay for ALL legal fees in adding the store to our lease plan, pay the higher of the 2 valuations AND pay for all the damp works etc. All papers etc and our offer was documented and to be presented at the 2nd meeting (attended by 6 Directors) which we were barred from. The minutes of the meeting showed that it was 'unanimously thrown out' as the company do not own the store and therefore are unable to sell it. They then went on to vote on internal carpets as well.

The person who chaired the meeting was the acting secretary and they told the other freeholders that the company did not own the store which is totally incorrect and we have all lease plans from land registry etc that prove it. We believe the acting secretary did this for personal reasons. None of our plans, nor our offer was put forward at the meeting.

We have since spoken to another Director who was at the 2nd meeting and she was appauled by what we told her. She had no idea of our offer and told us that the other Directors simply accepted what the acting secretary told them and so that was the end of it. She told us that the minutes produced did not reflect what was said in the meeting as no vote ever took place. There was no objection in principle to us acquring the store, purely they were told it wasn't the company's to sell.

We have since written to all Directors calling a meeting, giving 6 weeks notice and a number of dates, and provided them with our proposal and asked them for opinions etc and what dates for a meeting are best for them.

The Secretary and her husband (elderly couple) issued a letter (signed The Comapny) shortly after asking for copies of all plans, correspondence with the planning office etc and then the 'company' would give it consideration. They also stated that our request for a meeting was not going to happen until they decided! As a result the other Directors seem to have just accepted this and not responded to us calling a meeting.

A week later, and before we had a chance to reply as on holiday, they again wrote a letter signed The Company that a decision had been made that the company would not sell the store (they now agree the company does own it??!!)

Having spoken with 2 other Directors they have absolutely no knowledge of any meeting or consultation or vote and did not sanction the letter.

So..... Have the 'company' broken any laws?... deliberately excluding us from meetings where voting has taken place... writing letters under the company's name without informing any other Director etc etc>

We are writing to all Directors again saying the meeting is still going ahead and asking for proxy votes if they can't attend. Can we go ahead with the meeting and with a quorum vote and make a decision?... we believe we need at least 2 other Directors there as our vote won't count due to conflict of interest. We will have given all Directors plenty of notice, a proper agenda with all associated paperwork etc.

Thank you for your help!!! ]]> Long Leasehold Questions Westlab http://www.landlordzone.co.uk/forums/showthread.php?55314-Help-with-tricky-issue-concerning-a-fellow-Directors! http://www.landlordzone.co.uk/forums/showthread.php?55305-Legal-issue-communal-areas&goto=newpost Fri, 17 May 2013 18:40:42 GMT Hi all, not sure if this is the correct section, but if any one can help;

We live in and own a flat in an apartment block and we (all residents) have recently been told not to keep anything outside our flat doors i.e. shoes etc... due to health and safety.

I don't have an issue with this, although the letter wording is somewhat rude, but the letter states they will remove ALL personal items found in the communal areas, they will store said items for 28 days and will return them for a fee of £50.

Is any of this legal?

Many thanks ]]> Long Leasehold Questions buff http://www.landlordzone.co.uk/forums/showthread.php?55305-Legal-issue-communal-areas