Co-freeholder difficulty

roxybilly

I own my flat as a leaseholder and joint freeholder and am a co-director of the Limited Company which was formed to buy the freehold 10 years ago. All was fine but now there is a dispute between myself and the other leaseholder, joint freeholder and co-director. The front of the property needs urgent attention as the exterior of the building needs decorating. There could possibly be a problem with cracks in the walls. We hold two separate leases. Co-freeholder's demised premises includes the front garden too. In trying to negotiate this work and suggested improvements to the front garden to benefit us both, we have come to an impasse as she is acting on her lease giving her overall rights to do as she pleases. She is asking for quotes relay the front garden and decorate the exterior without any consultation. I sent an email and text asking her to make contact urgently but to no avail. I carry out the administration of the freeholder company i.e. submitting returns to Companies House. I said to her that it would make more sense to have meetings to discuss works but she won't respond. It seems she will go ahead with this work without regard to me as an interested party. Is she within her rights to do this? It is so hard when she totally ignores my concerns and correspondence.

G_M

There seem to be three issues:

* cracks in the wall. This is impotant and needs assessing. It might be superficial, it might be serious

* redecoration. This is cosmetic and not serious

* "improvements to the front garden to benefit us both". Not sure what you mean by this, but since you say the front garden falls within her lease it is up to her.

Freehold arrangements like this are ideal.... where they work and the Directors cooperate. They are a nightmare otherwise, especially with only 2 Diretors - ie no 3rd person to out-vote an unhelpful individual.

Who manages the accounts? It sounds a bit like you do. He who holds the pursestrings.......So if she 'goes ahead' without agreement, she'll have to pay out of her personal money.

Same if the accoints are joint and require 2 signatures. Again, you simply refuse to sign a cheque for unauthorised work.

Only problem is if she has access to the company money.

Meanwhile:

1) get your own quotes (2 or 3) for the cracks and redecoration. You might need a surveyor to assess the cracks, but start with a couple of free builders quotes to get an idea if it is serious.

2) send the quotes to her, with a formal letter, asking for copies of any quotes she has also obtained and requesting a meeting to agree a way forward.

Make clear in the letter that without such a meeting, and agreement, any work would be unauthorised by the freehold company and that therefore neither the company, nor you as leaseholder, would be liable for any costs.

Try to word it politely and in a friendly/cooperative way, whilst at the same time making the points above clearly in case of future dispute.

3) Unless there is more to the garden than you have posted, I don't see that it is any of your concern, unless she is planning to do something that her lease prohibits eg build on it. Have you got a copy of her lease?

roxybilly

Unfortunately I do not have a copy of her lease. We have always just split the costs of joint works before, there is no bank account as such and I file the zero returns etc to Companies House.
So then as part of the freeholder company, I am right in thinking that no discussion is required at all regarding the front garden and as lessee she can do whatever she wants with it? So true, this was a good arrangement until now and it seems so fraught with issues especially when there is a reluctance to communicate.

G_M

You have a lease on your flat. You can do what you want in your flat - repaint, fit new kitchen, etc unless there are specific things prohibited by the terms of your lease (eg knocking down walls). The flat is yours.

She has a lease on her flat, which includes the front garden. She can do what she wants in her flat/garden - repaint, fit new kitchen, replace lawn with flowerbed etc unless there are specific things prohibited by the terms of her lease (eg constructing an extension). The flat/garden is hers.

As a freeholder you should have a copy of all the leases in the property to which your freehold applies. That is the only way you, the freeholder, would know if a leaseholder is doing something that contravenes their lease!

The Land Registry may hold copies. For £3 you can download the Leasehold Title to her flat here, but that is not the same as the lease. If the LR has the lease on file, for £7 you can request a copy.

Your financial arrangement, to split costs as/when they arise on a 50/50 basis is quite common. Again, where both Directors of the freehold company are reasonable, and communicate, this system can work well. But.......

However, if she presents you with a bill out of the blue and requests 50% you are under no obligation to pay unless you have previously agreed.

Hence my advice to clearly state in a formal letter your position with regards to the proposed works. It will then be beyond doubt that any expenses she incurs are hers and hers alone since 'The Company' has not authorised them.

Another aspect to consider: if the crack does turn out to be serious, it might (might) be covered by your buildings insurance. You do have the building insured? Who arranges this and how?

roxybilly

Thanks for info

G_M

i've added to my post above.

Oh - and make clear in your letter that you are writing in your capacity as a Director of the xxx Company (ie not as a leaseholder or flat owner).

roxybilly

Thanks for your help. It is a puzzle why I was never given a copy of the other lease, but it was her who did the correspondence with the solicitor when buying the freehold and just gave me copies of paperwork - but not her lease????

G_M

roxybilly wrote: »

Thanks for your help. It is a puzzle why I was never given a copy of the other lease, but it was her who did the correspondence with the solicitor when buying the freehold and just gave me copies of paperwork - but not her lease????

Do you know who the solicitor was? They might have a copy.

roxybilly

Yes I do - will call them tomorrow
Thanks for your help