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Sell my freehold share?
Nemeton
Posts: 2 Newbie
Hi
I live in a block of 13 flats. About eight years ago six of us clubbed together and bought the freehold between us. Since then, I've been pretty much managing the process (overseeing managing agents etc). It has been an absolute nightmare, taking up considerable time (for a long time at least one day a week). We have been through three very bad managing agents - the last of whom undertook to do a major works project on the block (it was in dire need) and hugely mismanaged the budget, leaving us with £120k of work still to be paid for (we already paid £200k). The situation has gone from bad to worse, with legal issues abounding and I have received very little support from my co-freeholders, despite repeated requests. The situation became extremely stressful over several years and I eventually stepped down as "spokesperson" and two of my co-freeholders stepped in. However, since then, things have become even worse, with the new managing agent failing on all sorts of levels, and freeholders being asked to cough up money for various things.
There is some level of acrimony in the freehold company now and I'm finding it increasingly stressful both emotionally and financially. So, my question is whether it will dramatically affect the potential value of my flat if I sell on or (more likely) just leave the freehold company? I think I will be wanting to sell in the next couple of years.
Many thanks.
I live in a block of 13 flats. About eight years ago six of us clubbed together and bought the freehold between us. Since then, I've been pretty much managing the process (overseeing managing agents etc). It has been an absolute nightmare, taking up considerable time (for a long time at least one day a week). We have been through three very bad managing agents - the last of whom undertook to do a major works project on the block (it was in dire need) and hugely mismanaged the budget, leaving us with £120k of work still to be paid for (we already paid £200k). The situation has gone from bad to worse, with legal issues abounding and I have received very little support from my co-freeholders, despite repeated requests. The situation became extremely stressful over several years and I eventually stepped down as "spokesperson" and two of my co-freeholders stepped in. However, since then, things have become even worse, with the new managing agent failing on all sorts of levels, and freeholders being asked to cough up money for various things.
There is some level of acrimony in the freehold company now and I'm finding it increasingly stressful both emotionally and financially. So, my question is whether it will dramatically affect the potential value of my flat if I sell on or (more likely) just leave the freehold company? I think I will be wanting to sell in the next couple of years.
Many thanks.
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Comments
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Why are you having so many poor managing agents, are you not seeking recommendations or are your expectations unrealistic? The whole point of a managing agent is to manage, why is there the need to invest so much time? I don't think you can just leave the freehold company unless you sell your share, to make the flat more saleable you need to address the issues, it may even be unmortgageable if the accounts are a mess.Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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You will need to look at the memorandum and articles of the company because most residents flat management companies have a provision that you have to be a flat owner to have a share in the company so the only people you could sell to would be any flat owners who didn't presently have a share and given the present level of lack of management etc would anyone want to buy a share?
If you sell your flat the share will go with it - but who will want share without a flat, even if it was legally possible under the memo and arts?RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
Many thanks for the replies.
We've had huge problems getting decent managing agents, primarily I think because the block is small and run down and in Hackney (so the likelihood of non-payers of service charge has been seen as a risk). We have been turned down by many many managing agents... the ones we have appointed have failed on many levels. The last one grossly mismanaging budgets (and has recently received media attention for it's general negligence in property management), the current one for example supposedly taking over as company secretary of the freehold company, but failing to do the paperwork, leaving us with no accounts being filed and subsequent fines (I could go on....). The accounts are fine - just constantly filed late...
I'm aware that my share wouldn't be of interest to anyone else except leaseholders in the block, which is why I was considering simply leaving the freehold company. I have put ten years into the building (it took us two years to negotiate buying the freehold) and feel that it has taken over far far too much. There are huge issues still (largely around the state of the building), but there is not much will or inclination to get them sorted unless I do it, and I'm at the end of my tether. I am not prepared to re-enter the fray with this, and am just wondering how I can extricate myself, or whether it's better to sit tight and pay the extra as a freeholder because having a share of the freehold gives the flat added value....0 -
Share of freehold does not give added value if the place is poorly managed unfortunately.Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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Put the flat in an auction and hope someone buys it and then take whatever you have got for it and run away fast....RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0
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