Big Problem with Freehold Company of House

Fraise

ValHaller wrote: »

Now you are beginning to understand how you can tackle this, perhaps you can begin to see that as a leaseholder you can enforce things at expense to all the leaseholders.

Once you get your head around the arguments and really understand how it works and how it could play out, you stand a fair chance of explaining it to the Wet Willies, in such a way that they can see that letting the chairman have it all his own way might not be in their interests.

Oh thank you ValHaller, I am definitely understanding it now (though it was a minefield as I'm not all familiar with all this company/freehold stuff), but after reading your advise I feel a while lot better that I'm a leaseholder, and that carries the clout! Thanks again

propertyman wrote: »

You will now understand that the company can do what it lawfully wants to do, but if that involves not doing something that they are contracted to do in there contracts- the leases- the person with the contract-the leaseholder-might sue or take it out of their hands(receiver/manager) if the situation is bad enough

The key issue here is that having read the section 20 guides on the LEASE site you contribute positively.

It might play out like this…..

Ok we agree that we need to do external works ( oh, and check if render is yours to repair in which case just get on with it) so what I suggest is

1 What works to include- if we each get our quotes and builders advice, we’ll end up with a lot of prices and more argument, and one builder cheap on one thing and another cheaper on another, and conflicting advice.

2 We can’t just bill as and when as our leases require us to bill at a certain time in a certain way for this work as service charges o if one of doesn’t pay we won’t be able to sue them. The rest of us will have to pay the builders bill until we can sort that out.

3 Lets employ a local chartered building surveyor to inspect and give us a report and options for repairs, together with a budget so we know what to expect from builders

4 Lets Draw up a schedule of works and agree what we get prices on ( via the notice of intention process) and that can include options if price is the deciding factor. It will include schedules of rates so if extra work is needed we know what the builder will charge and not be stuck with what he makes up on the spot, and agree when we pay him. If it’s complicated we can pay the CBS to do that as well.

5 Lets then agree who to get prices from send them the schedule and ask them to price, and send them in to us in sealed envelopes which we all open together.

6 We then serve the notice of estimates setting out all the costs and options and then discuss them and come to an agreement.

If we think this is too much the CBS can do the specification tendering and oversee the work, which a managing agent if we had one would do by employing the CBS for the project.

7 Having Read our lease the cost of this work has to be included in the estimate for the year and therefore we’ll need to have this done by March so that the 25th Mach bill includes what we need to pay, and this stays in the company service charge trust account until we, the company, are happy to pay as agreed with the builder.

Thank you Propertyman, you have explained it to me really well - I know it takes me a time to comprehend the legalities, but I'm so new to ita all - and what you've advised me has given me great peace of mind. I'm not in the precarious position I believed I was! Thank you.

Fraise

Just to recap on my situation.

I bought a SOF flat in a converted house 6 years ago. There are 4 flats in total.

The 4 flat-owners all paid a small amount into a fund for maintenance works to the property (drains, gutters, tidying up of the communal driveway - weeds etc, and redecorating every 7 years or when needed).

Despite me paying into the fund NO work ever got done. I would constantly ask one of the flat-owners to arrange repair of leaking gutters etc, and he never bothered to do it. I was unable to order work to be done, as a) we need 2 signatories on the cheque book b) we all need to agree to the work, and c) one of the flat-owners is deliberately obstructive and refuses to allow tradesmen to inspect the drains (the manhole cover is in his garden).

BUT, the new problem is just as bad!

In May one of the flats was sold and bought by a man who is, quite frankly, a dictatorial busybody. Whilst the other two are lazy and disinterested in repairs and the property, the new flat-owner is the total opposite. But not in a good way.....

When he moved in we all formed a freehold company (my suggestion before he moved in), and he coerced the 3 of us to make him Chairman. Now, we're not running ICI, it's only a freehold company, but he seems to think he has huge power now that he's a Chairman.

Since he moved in he has not arranged ANY work that needs doing. The gutters are still leaking -and one of my bedrooms is damp due to the water running in. When I told him that we needed a roofer urgently, he told me to get 3 quotes - which I am now doing - but I'm not quite sure what his 'Chairman' duties are.......

He has the ONLY cheque book to the fund, and refuses to order any more. Of course, all cheques need counter-signing by one of us too, but even so, it would be prudent to have another cheque book in case he was absent for some reason and an emergency arose: leaking burst drain or something...

This man is insufferable, and struts around like a little peacock as though he owns the whole property. In fact, he has the smallest and cheapest flat, and I have the largest, nicest and most expensive one. I don't know if he resents that, or if he's just a misogynist, but he seems determined to make my life hell.

He even had the audacity to ORDER me not to park in MY parking space, and he accused me of using it as my own 'personal space'. I actually own that space, it's all registered with the LR, and I park to the side exactly as it is in my deeds. I never obstruct anyone, ever (it's a big drive with lots of room) and in fact, only one other flat owner uses the drive to get to his garage on his motorbike. The other 2 never use the driveway, not even the Chairman, yet he doesn't want me to use it, even though I own a space on it!

The other problem is that when we started the company we all became directors, and I was hopeful that it would mean we would get the maintenance work done,which is in a terrible state. All the Chairman was interested in was having trees cut down in both his and his neighbouring flat-owners private garden, as it was blocking his view. He wanted to pay for it out of the fund, and the fund does not cover private garden works. He went crazy when I refused, and swore at me down the phone. Eventually, he and the other flat owner paid for the tree work themselves, but the Chairman never got over that.

Since he's been here he too has got no major works done, and it is breaching the lease. He has not arranged for the leaking gutters (all at my end I may add) to be repaired, he has not arranged for the drains to be cleared of roots etc, and the rendering is rotting too. All he does is send emails in an official manner, and says he is monitoring the trees!

Last week he got two of his friends to deliberately park in the entrance of my driveway to cause me harassment. He knows what time I leave the house. The men were sat in the car taunting me when I asked them to move, and then they damaged my car too.

There have been other niggling things as well, but too many to go into. He also wants to employ a management agency (friends of his I believe) to syphon more money out of us. We do not need an agency, we just need to arrange a roofer, drain-man and decorator.

The upshot is that now he has sent another of his formal emails to me (and the other two directors) saying I am going to be voted out as a director. Yet it is HE who is obstructive and unco-operative and refuses to arrange work. The other two are like Laurel and Hardy, and he manipulates them.

I thought when he moved in that we would at last get the property sorted out in accordance with the lease, but it has actually got worse!

Here is the email he sent (I have crossed out names etc for obvious reasons):


[FONT=&quot]IN THE MATTER Of MANAGEMENT COMPANY LTD[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Company No: 8[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]TAKE NOTICE that G M gives notice to the company that he intends to propose the following Ordinary Resolution at the next general meeting of members.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]The resolution being that Ms L T S should be removed from office as a director with immediate effect.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]The resolution is made because Ms S has been un-cooperative and confrontational in her dealings with the other directors in their attempts to manage the Company and because it is believed that she is not acting in the best interests of the company as a whole.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]This resolution is being made pursuant to section 168 of the Companies Act 2006.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Gxx Mxx[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Director and Shareholder Member of the Company[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Dated the 18th of November 2013[/FONT]

[FONT=&quot][/FONT]

[FONT=&quot][/FONT]

[FONT=&quot][/FONT]

[FONT=&quot][/FONT]

[FONT=&quot][/FONT]
[FONT=&quot]So, what on earth d I do now?!! He has arranged a meeting for two weeks time in order to throw me off by voting system, but how can he do this when I have done nothing wrong?!! HE is the one who has been non-compliant and unco-operative. He has also abused me me and caused me harassment [/FONT]

[FONT=&quot][/FONT]
[FONT=&quot]Oh, he also attached a letter to his Notice...here it is:[/FONT]

[FONT=&quot][/FONT]


[FONT=&quot]IN THE MATTER Of MANAGEMENT COMPANY LTD[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Company No: 8[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]TAKE NOTICE that there will be a general meeting of members to be held at 7 pm on Wednesday the 18th of December 2013 and the meeting will take place at The [/FONT][FONT=&quot][/FONT][FONT=&quot][/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]TAKE NOTICE that at the meeting the members will consider and vote upon the intended resolution pursuant to section 168 of the Companies Act 2006 to remove Mrs S from her office as a director of the company with immediate effect.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Pursuant to section 169 of the Companies Act 2006 Mrs S has the right to supply written representations not exceeding a reasonable length and to be heard in relation to the resolution at the meeting.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Members may vote by proxy.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]This Notice to be served on all directors/shareholders members.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Dated on the 18th November 2013.[/FONT]

[FONT=&quot][/FONT]

[FONT=&quot][/FONT]
[FONT=&quot]I don't now where to turn, actually. And by the way, this new flat-owner isn't actually the Chairman, he resigned after one week when he had a tantrum, and somehow he's re-elected himself as chairman without asking anyone![/FONT]

[FONT=&quot][/FONT]
[FONT=&quot]What's the best thing I can do?:([/FONT]



[FONT=&quot][/FONT]


[FONT=&quot]
[/FONT]

Fraise

Just to add...........

When he wrote that I have been obstructive and confrontational with the other directors in their attempt to run the company A) not ONE of them has made any attempt to do anything! No repairs, nothing! And I haven't even SPOKEN to the other two since the company was formed! I have only spoken to the chairman.

None of us ever see each other (one doesn't even live at the premises), so he is talking rubbish. He just doesn't lie the fact that I refused to pay towards the tree felling in his private garden, and he doesn't like the fact I refused to pay £3000 a year for an agency, who he is friends with and will possibly get a cut out of it. After all, he's as tight as duck;s backside, so why would he want to pay all that extra money for nothing.....it isn't rocket science phoning up a roofer and decorator for quotes! And what exactly is his job as Chairman if he does sweet fanny Adams except monitor trees?!

propertyman

There is probably a book in the issue you pose as the subject is a vexed one. It’s a common trend in our “seasoned citizens” that as time passes the state of their garden improves as the state of their home deteriorates. It may be an issue that they are concerned over falling trees and the cost of underpinning, even aesthetics, while a bit of paint or a roof is either “very cheap” or “not worth investing in as I wont live long enough to benefit from it”

The trick might be to keep your style of expression in check as if you approached them and the subject in the emotive and demonstrative manner as some of the comments in your two threads, that could truly alienate someone.

Who is right is not the sort of contest to get into, and thankfully, what is right is broadly covered by the leases and the surrounding law. That offers the ability to make discussions neutral in terms of your argument and personalities " its not me being bossy, its the lease and or the law".

Perhaps you might adopt a different approach and offer to every one a reply that acknowledges his statement but that it was never your intention to leave others feeling that way( sounds like an apology but isn’t-“mwah ah ha”),

You can explain that while the trees were concern and that work was needed your intention was to point out that the company should approach the person responsible to do the work at their cost as their lease, the contract between the company and the flat owner, requires( planting the seed of always read the lease).

Then you can move onto the decorations bit finishing with say “in this way we as directors understand our statutory duties and can set out a road map for the chairman to follow and report back at each stage to discuss progress and agree how we deal with each new stage”

You might want to take a look at the advice guides here most of which applies to you and to ensure that your company and the chair are ensuring that the technical adminstrative and statutory duties are fufilled.

http://arma.org.uk/leasehold-library?offset=0