£11k Service charges on leasehold flat.

chilihead

Oh Lord - Sorry to hear that Carine. Just sent you a PM

hanwellmike

Just a couple of observations regarding the possibility of buying the freehold. If there are 24 flats then I would be cautious of going that route. That's a lot of people to organise and get on board - both for the process of purchasing the freehold and then the management of the property after the purchase. I live in a block of 12 flats where we own the freehold. We don't employ a management agent, we organise all maintenance works & administrative work ourselves. This is as cheap as you can do it but it does mean that we rely on ourselves to get things done. Some people help out and some people don't - human nature. Some people buy flats for short period and are unwilling to look at long term issues. Getting decisions on expenditure from 24 people (especially with absentee leaseholders) could be problematical. Maybe you would have to employ a management agent yourselves and at least you would be calling the shots. Finally we do not have a sinking fund. It has been discussed and most residents were happy to keep the service charge low and pay extra when any expensive repairs come up. Best of luck for the future.

chilihead

Thanks for the observations, hanwellmike - appreciate the insight.

Just an update. Yesterday I received a letter from the MA's advising of revised work specs using a "new" roof coating with "the aim of significantly reducing the overall costs of the proposed works". I've received a new first section 20 Notice of Intent to comment on.

It's a step forward.

ceegee

chilihead wrote: »

I'm still waiting for leasehold-advise.org to get back to me with regard to a lvt.

A couple of us leaseholders are in the process of seeking specialist legal advise.



.

I was going to suggest an urgent appointment with a solicitor who specialises in this type of thing!

The trouble with e-mails is that it can take too much time if you are having to wait for replies. Also, the replies might bring up further issues, resulting in more e-mails and more waiting and so on and so forth.

But if you are in a room with a good and knowledgeable solicitor, then you can ascertain so much more in a much shorter time. It really saves a lot of time and to-ing and fro-ing and time wasting.

I wish you all the very best with this matter......it sounds like an absolute nightmare. The prop/man/co sound extremely shady to me....I wouldn't trust them as far as I could throw them.

Good luck.

CarineG

Hi Chilihead,

I have sent you a PM.
Since your managing agent has not followed Section 20 consultation adequately, of course they are now re-issuing a revised notice of intention.
Let's hope they get the process right this time around.

If the notice of intention and/or notice to proposed works still doesn't follow the correct process. An action with the LVT to get a new Managing Agent appointed may be your best bet since this is something you can do alone or with the other leaseholders interested to take part.
It sounds like buying the Freehold will be difficult considering the number of flats in your building.
Good luck!

propertyman

CarineG wrote: »

If the notice of intention and/or notice to proposed works still doesn't follow the correct process. An action with the LVT to get a new Managing Agent appointed may be your best bet since this is something you can do alone or with the other leaseholders interested to take part.
It sounds like buying the Freehold will be difficult considering the number of flats in your building.
Good luck!

By way of clarification it is not the appointment of a new agent but an independent manager appointed by the court. They undertake the duties of the landlord, and are therefore working under their own direction under the authority of the LVT determination. An MA will have limited authority delegated to them but is accountable to a client who retains ultimate authority. There has to be reason as set out by the Act for such an appointment.

What might be better is to leave the freehold as is and look at exercising the right to manage which Lease-advice.org can help you with.

This removes the management from the freeholder and into the hands of the residents, on a no fault basis, who can appoint their own managing agent, accountable to them. The landlord remains the person to collect his rents, and has some input to matters such as consents to alter, but otherwise is very much out of the way.

CarineG

propertyman wrote: »

By way of clarification it is not the appointment of a new agent but an independent manager appointed by the court. They undertake the duties of the landlord, and are therefore working under their own direction under the authority of the LVT determination. An MA will have limited authority delegated to them but is accountable to a client who retains ultimate authority. There has to be reason as set out by the Act for such an appointment.

What might be better is to leave the freehold as is and look at exercising the right to manage which Lease-advice.org can help you with.

This removes the management from the freeholder and into the hands of the residents, on a no fault basis, who can appoint their own managing agent, accountable to them. The landlord remains the person to collect his rents, and has some input to matters such as consents to alter, but otherwise is very much out of the way.

I see, thanks!

chilihead

I received a Section 5B Notice from the Freeholders solictors today, advising that the Freehold will be for sale at public auction next February.

So, this has presented an opportunity, although as mentioned previously, there are 24 flats, plus garages and grounds. Less than half of the flats are occupied by leaseholders, and three are currently for sale. Even getting 50% of leaseholders to agree to reserve their rights is going to be problematic, and I don't even want to think about costs.

20 flats have leases to December 2102 (91 years). 4 have 150 years.

Does anyone have any advise/experiences with buying freehold where many of the leaseholders do not live on site?

Has anyone been in a similar situation and NOT bought the freehold?

Thanks

propertyman

Ok it can be complicated and you are going to need professional advice on
1: value
2: future arrangements with leases of varying lengths and if not everyone is gong to join in.

here is useful guide.

http://www.lease-advice.org/publications/documents/document.asp?item=16

CarineG

HI Chilihead,

What's happening with your property?

Carine