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freeholder or residents association?

basically guys we've got an 8 converted flat property that is run by a residents association.

leaseholders are responsible for maintenance and repairs.

the roof is badly damaged (long story short, the insurance are deeming this as a maintenance issue rather than storm damage) so faced with a £20k bill which the resident association doesn't have in the fund, who is ultimately responisible? reason i ask, a few of the leaseholders it's difficult to get their monthly payment let alone getting £3k out of them each!

can we "force" the freeholder to pay it and he then chases the individual lease holders (obviously whilst adding on his % on top?)

Comments

  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    leaseholders are responsible for maintenance and repairs.
    Leaseholders may be obliged to contribute/pay for the maintenance/repairs, but not for managing them. That is the role of the freeholder, or possibly delegated to a management company or residents association.

    The bottom line here, though, is to read the leases. Only the lease can dictate what the freeholder can be made to do, or what the leaseholders can be made to pay for.
  • CR2
    CR2 Posts: 5 Forumite
    the leases definitely say we are responsible for all costs.

    we have a residents association on a RTM basis, have £6k in a fund but need about £25k, i know trying to get the equal share from 1 or 2 flats will prove difficult.
    so what's the best way to tackle this? the works are urgent, but I'm not sure if the other 6 owners will front up the extra £6k whilst trying to get the outstanding amount from the 2 "non-payers".
  • Mickygg
    Mickygg Posts: 1,737 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    You will need to call a residents meeting to discuss. No one in their right mind will pay more to cover another resident that won't pay just yet!Another option may be to use the £6k to repair the roof to last a while until the funds can be saved up for a proper repair?
    How long willit take to reach £20k in the fund?
  • propertyman
    propertyman Posts: 2,922 Forumite
    edited 3 December 2012 at 9:05PM
    Sigh, no you don't.

    You either have a right to manage company exercised under CLRA 2002 or you have an RA

    If you exercised RTM, you have taken away all the powers so that it is the RTM, not the freeholder are now responsible for repairs ( assuming the lease made the roof the freeholder's repair responsibility and leaseholders to reimburse).

    The cheap trick is that when reading the lease, with the exception of ground rent, for freeholder read " you block of flats RMT Co Ltd"

    If it is an RA then you should force the FH to do so and they are restricted to recovering their costs as the lease says when and how they pay.

    The same applies if you are an RTM. The RTM is responsible and can only recover its costs as the leases allow, so members of the company will have to put it into funds or wait till everyone pays.

    Bear in mind, in either case, if any one flat will contribute more than £250 the FH or RTM must consult under Section 20.
    http://www.lease-advice.org/publications/documents/document.asp?item=19

    Even if it is urgent this must be done although application can be made to the LVT to waive that requirement.
    http://www.lease-advice.org/publications/documents/document.asp?item=18#8

    Good luck
    Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
    Actively hunting down the person who invented the imaginary tenure, "share freehold";
    if you can show me one I will produce my daughter's unicorn
  • propertyman
    propertyman Posts: 2,922 Forumite
    edited 4 December 2012 at 9:58AM
    G_M wrote: »
    Leaseholders may be obliged to contribute/pay for the maintenance/repairs, but not for managing them. That is the role of the freeholder, or possibly delegated to a management company or residents association.

    The bottom line here, though, is to read the leases. Only the lease can dictate what the freeholder can be made to do, or what the leaseholders can be made to pay for.

    Thats correct in straightforward situations, however if the OP is right and they are an RTM, then it is they not the freeholder that is responsible.
    RTM removes virtually all such responsibility from the freeholder.
    Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
    Actively hunting down the person who invented the imaginary tenure, "share freehold";
    if you can show me one I will produce my daughter's unicorn
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Thats correct in simple terms, however if the OP is right and they are an RTM, then it is they not the freeholder that is responsible.
    RTM removes virtually all such responsibility from the freeholder.
    Whiew!

    Basically just a simpleton me - but at least got it right at that level...

    :T
  • CR2
    CR2 Posts: 5 Forumite
    right well looks like i'm going to have to look into this some more.

    we have an RA and we instruct and pay for repairs as & when needed, but i'm not sure exactly how official it is, i know before i moved in, he was adding excessive charges onto repairs so they set up an RA, but i've no idea just how it was done.

    so does that sound like RTM or just a bodge up to not overpay his charges or can an RA do as we do and instruct and pay for things ourselves, but the FH still has overall responsibilty?

    cheers
  • propertyman
    propertyman Posts: 2,922 Forumite
    G_M wrote: »
    Whiew!

    Basically just a simpleton me - but at least got it right at that level...

    :T

    There is simple and there is complicated, RTM is relatively complicated . :cool:
    Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
    Actively hunting down the person who invented the imaginary tenure, "share freehold";
    if you can show me one I will produce my daughter's unicorn
  • propertyman
    propertyman Posts: 2,922 Forumite
    CR2 wrote: »
    C'mon you can't guess. :(

    Do your bills say Your block of flats Residents Association or Your block of flats Right to Manage Company Ltd?


    Your bills from whoever should say Notice under Section of 47 and 48 of the Landlord and Tenant Act 1987 the landlord is ......
    Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
    Actively hunting down the person who invented the imaginary tenure, "share freehold";
    if you can show me one I will produce my daughter's unicorn
This discussion has been closed.
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