Ending a Service Occupancy aggeement

Pippaki

Hello,

I live (leaseholder) in a block of 72 flats. There is one addtional flat (called flat1) which is not on the lease and is owned by the freeholder.
Last year we managed to take over the RTM as the previous management company and the freeholder were just taking the pi**.

The caretaker lives in flat1 and we, as the leaseholders and now as his employer, pay his salary out of the service charge contribution. We also pay some sort of rent (don't know what else to call it) to the freeholder for the use of the flat.

The freeholder just served notice of possession on flat1. And we need to know if the freeholder has a right to do this? Below what it says in the service occupancy agreement:

Between the "freeholder" and the "caretaker" WHEREAS the Employee is in the employment of the Employer as House/Manager caretaker and for the proper performance of his duties in such employment it is essential that he should ocucpy the premises. It is hereby agreed as follows:

1. The Employee whilst in said employment and for the proper efficient discharge of his duties in the said employment is here required during the term of such employment to occupy the premises known as Flat 1 (full address).
2. Just tells us that he is allowed to have guests....and can use the premises as his residence.
3. That he keeps everything in good and clean condition.
4. Nothing herein contained shall create the relationship of landlord and tenant between the parties hereto and the benefit of this agreement shall be personal to the Employee only and shall not be assignable to him.
5. The occupation of the premises by the Employee is a condition of his employment with the Employer and the right of the Employee to occupy the premises shall cease upon determination of the Employee's said employment or upon the Employee being transferred to another place of business of the Employer.
6. Upon the happening of either of the events referred to in clause 5 hereof the Employee shall upon demand vacate the property.

Now to me it looks like the freeholder hasn't got a leg to stand on as the Employee hasn't been sacked or handed in his resignation (in fact he is very happy were he is).

But, could the employment of the caretaker have changed when we took over the right to manage? The service occupancy agreement was signed by the old management company on behalf of the freeholder. Now that we (RTM) effectively have taken over his employment and we are his employers would this have an effect on the agreement?

As we successfully stopped the freeholder converting our lovely reception area into another 2 flats he is pretty pi**ed off with us I reckon. I guess he will try to sell the caretakers flat to make some profit. And, he is now offering us to buy the freehold.

Thanks.
Pippaki

DVardysShadow

Difficult.

It depends who Employer is, I suppose. How does the occupancy agreement define 'Employer'?

And how did the employee come over? Was the management company transferred - or is it a new management company which took on the employee under TUPE. Or was the employee taken on without understanding TUPE or considering whether it applies?

G_M

There is one addtional flat (called flat1) which is not on the lease and is owned by the freeholder.

Just to be clear:

On the Land Registry records for flat 1 [address], is there just a single Title (the Freehold)?

No Leasehold Title?

(You can check that for free here - you only pay £4 to download the Title.)

In your own (and the other 71) leases, is there mention of a resident caretaker being provided?