Freeholder pulling a fast one

stu3105

Barfer.

This is a similar case that a good friend of mine had back in the mid 90's,the freeholder changed the management company or gave them the contract for a nominal fee,they in turn attempted to do as is happening to you.

After some legal advice it transpired that the freeholder must offer it to the flat leaseholders first,they formed their own management company and paid the freeholder the same as the new management company for the contract.

Its worth seeking legal advice on this one.

NAR

There are 6 apartments in my block, with each resident having a £1 share holding. We have a management company who present the accounts to the residents group each year and also seek approval to the next year's management fee. Our management company fee is £250 in total, so I would agree you are being ripped off! Can't remember what our audit/accountant fee is, but it is certainly nowhere near £500!

EdInvestor

stu3105 wrote:

After some legal advice it transpired that the freeholder must offer it to the flat leaseholders first,they formed their own management company and paid the freeholder the same as the new management company for the contract.Its worth seeking legal advice on this one.

I suspect you are confusing two things here: the right to buy the freehold, which should be offered to the leaseholders first, and the right to manage the block without actually buying the freehold, which is a new regulation only recently introduced.

This latter one is probably appropriate in this situation.

look here for details:

https://www.lease-advice.org.uk

hazeyj

Hiya you dont have to pay any fees is they are more than 18 months or so old if they havent been demanded before. I would ask to see a breakdown of fees and dates on the bill they have presented you with.