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    • charb56
    • By charb56 10th Jul 17, 8:35 PM
    • 17Posts
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    charb56
    head lease directors
    • #1
    • 10th Jul 17, 8:35 PM
    head lease directors 10th Jul 17 at 8:35 PM
    my daughter owns a flat in a leasehold block of 6, it also has a "head lease" and 2 of the other owners are directors of this lease which involves making various decisions on behalf of the block directly with the management company., they were appointed many years ago. she would like to have more of a say in the running of the block, can she ask to be a director as well- as this wasn't offered when she bought 2 years ago?
Page 1
    • G_M
    • By G_M 10th Jul 17, 11:12 PM
    • 41,100 Posts
    • 47,243 Thanks
    G_M
    • #2
    • 10th Jul 17, 11:12 PM
    • #2
    • 10th Jul 17, 11:12 PM
    I suspect you have some terminolgy confused, and in order to answer your question we need to correctly understand the legal make-up of the various parties.

    * who owns the Freehold?
    * who owns the Head Lease?
    * who employs the Management Company?
    * what precisely does your daughter own?
    • charb56
    • By charb56 11th Jul 17, 7:39 AM
    • 17 Posts
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    charb56
    • #3
    • 11th Jul 17, 7:39 AM
    • #3
    • 11th Jul 17, 7:39 AM
    the freehold is owned by an investment freeholder. my daughter owns one flat and each flat is given a share certificate in the whole building who I believe all own the head lease if that makes sense.
    2 other owners became directors of the head lease which means that the other 4 owners have delegated responsibility to them to arrange the management company, they have signed terms and conditions of the management company, they are not paid and it is voluntary. major refurb works are due next year and my daughter would like to have more of an official say in them
    • eddddy
    • By eddddy 11th Jul 17, 9:30 AM
    • 5,134 Posts
    • 4,787 Thanks
    eddddy
    • #4
    • 11th Jul 17, 9:30 AM
    • #4
    • 11th Jul 17, 9:30 AM
    Based on your posts, I suspect the situation is as follows:
    1. A freeholder owns the building

    2. A company owns a head lease (for all or part of the building)

    3. A number of individual leaseholders own flats

    4. The company that owns the head lease uses a management company to manages the building

    5. Each leaseholder (including your daughter) is a shareholder in the company that owns the head lease. Two leaseholders are also directors of that company.

    What type of work is planned? Is it repairs to bring the building back up to the condition it was in when the lease was granted?

    Or is it improvements, that will take the building to a better standard than when the lease was granted?


    It's a complex area, but the bottom line is probably :
    Your daughter and other leaseholders have to contribute to the cost of repairs to the building (but they can object if the cost or the work is unreasonable).

    Your daughter and other leaseholders probably cannot be forced to contribute to the cost of improvements.
    So she may or may not get the opportunity to put forward her views on improvements, but if she doesn't like the outcome, she can probably veto them by refusing to pay.
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