Bank account for joint freeholders?

zipp

Hi,

We are trying to find a way for us and our joint freeholders (four of us altogether) on our property to set up a bank account or method of payment that requires us all to sign off on transactions.

This is so that when we get maintenance work carried out by a company, we can make payments in a fair and transparent way.

However, I'm having trouble finding bank accounts that work in that way.

Please can you tell me
a) if you have used any bank accounts in this way and how it works

b) If you have used a similar service such as escrow

c) any alternatives you know of for joint freeholders to make large payments

We don't wish to set up a company but are just looking for a simple way to ensure that large payments to companies are made fairly and in a way that requires everyones signature

Many thanks
Zipp

DandelionPatrol

If you are individuals, you would be foolish to have a joint bank account with the others, because any bad credit issues with any freeholder will affect all the other freeholders.

You need to form a company or some similar body and have the account in the name of that.

eddddy

zipp wrote: »

We are trying to find a way for us and our joint freeholders (four of us altogether) on our property to set up a bank account or method of payment that requires us all to sign off on transactions.

Realistically, almost all payments will be by online bank transfer or plastic card.

As you appreciate, there is no concept of 4 people having to log on to make an online payment, and no concept of 4 people having to enter a PIN to make a debit card payment.

If you don't trust each other enough to 'hold the purse strings', you can just tell suppliers that all payments will be made in 4 parts - i.e. you will each pay a quarter of the bill direct to the supplier.

G_M

DandelionPatrol wrote: »

If you are individuals, you would be foolish to have a joint bank account with the others, because any bad credit issues with any freeholder will affect all the other freeholders.

You need to form a company or some similar body and have the account in the name of that.

Do not dismiss this.

As soon as your finances are linked in this way you will find it affects

* your mortgage application
* a credit application for a car loan
* credit card application
* tenancy application

and anything else where a credit check is involved.

One missed credit card payment by one of the 4 will affect you all.

DandelionPatrol

G_M wrote: »

Do not dismiss this.

As soon as your finances are linked in this way you will find it affects

* your mortgage application
* a credit application for a car loan
* credit card application
* tenancy application

and anything else where a credit check is involved.

One missed credit card payment by one of the 4 will affect you all.

Or a payday loan
Or even a problem with cancelling a mobile phone

Annisele

Why don't you want to set up a company? I think there are (a few) good reasons for that, but most of them pale into insignificance next to the risks of having a joint bank account with four other people. By the time some sales and purchases have happened, you might not even know the joint accountholders.

If you explain a bit more about why you don't want a company, people might be able to suggest workarounds.

sgun

The Co-op do one. We used it to collect £14,000 from 16 flats in a block for a re-roof in Edinburgh. Can't remember off hand what its called but it should be easy enough for you to find out. It does work differently sometimes in Scotland though but I do know that the account holders weren't linked in the same way that "joint" account holders are so their individual finances didn't matter. It took a long time to find it and I do remember my husband doing a lot of phoning around rather than getting it off websites.


If you want to know what it's called I'll get him to dig out the paperwork. Community account maybe??