We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Action needed if leaseholder unable to contribute towards repairs?

SnowWhiterThanWhite
SnowWhiterThanWhite Posts: 813 Forumite
Part of the Furniture 500 Posts Combo Breaker
in House buying, renting & selling
If a leaseholder (elderly & disabled) simply does not have any funds available to cover repairs/maintenance to building, what action can the freeholder take?
Further issues are...
1) No sinking fund
2) No service charges ever requested
3) Remaining leaseholders are keen on having repairs done quickly to avoid any further damage
4) Freeholder does not have funds to pay up-front costs to builders
5) Leaseholder in question has a mortgage - currently in arrears
6) approx cost of repairs £5000 total (3 flats)

Thanks
"Hope for the Best
Prepare for the worst"
«1

Comments

  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    There's basically a choice.

    * Delay the work until the leaseholder either CAN afford it or changes.
    * Issue a claim against them.
    * Swallow it, and spread it between the other leaseholders...

    You're looking at about £1700 per property, assuming it's spread evenly - so an extra £850 each if you take the third option.

    Might this be the nudge you need to get a sinking fund in place?
  • SnowWhiterThanWhite
    SnowWhiterThanWhite Posts: 813 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    AdrianC wrote: »
    There's basically a choice.

    * Delay the work until the leaseholder either CAN afford it or changes.
    * Issue a claim against them.
    * Swallow it, and spread it between the other leaseholders...

    You're looking at about £1700 per property, assuming it's spread evenly - so an extra £850 each if you take the third option.

    Might this be the nudge you need to get a sinking fund in place?
    Thanks, service charge is being addressed.
    The other leaseholders will not agree to cover the unpaid portion.
    How would the claim against him be started? Is it a case of contacting the mortgage company or, having to go to court first?
    "Hope for the Best
    Prepare for the worst"
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    SnowWhiterThanWhite wrote: »
    How would the claim against him be started? Is it a case of contacting the mortgage company or, having to go to court first?

    Court. https://www.moneyclaim.gov.uk

    This is nothing to do with his mortgage lender.
  • SnowWhiterThanWhite
    SnowWhiterThanWhite Posts: 813 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    AdrianC wrote: »
    Court. https://www.moneyclaim.gov.uk

    This is nothing to do with his mortgage lender.
    I was under the impression that the mortgage company has to pay out and add to mortgage if their customer breaches the term of the lease?
    "Hope for the Best
    Prepare for the worst"
  • SnowWhiterThanWhite
    SnowWhiterThanWhite Posts: 813 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    There is no point, I believe, in taking to court, even if f/h wins, the l/h simply cannot pay?
    "Hope for the Best
    Prepare for the worst"
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    SnowWhiterThanWhite wrote: »
    There is no point, I believe, in taking to court, even if f/h wins, the l/h simply cannot pay?
    No, but it may help them to prioritise.

    The lender don't have to add the debt to the mortgage, but they may choose to do so, in order to protect their investment. They're probably less likely to do that over an ad-hoc bill than a scheduled ground rent or sinking fund payment, though, since the work can still be delayed. Since the leaseholder is already believed to be in mortgage arrears, it may just accelerate repossession.
  • SnowWhiterThanWhite
    SnowWhiterThanWhite Posts: 813 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Thanks.
    If delay to repairs is causing further damage, the F/H cannot afford to cover the shortfall, what happens then?
    Can the F/H be held responsible for further damage?
    "Hope for the Best
    Prepare for the worst"
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    The freeholder cannot afford to? Or is unwilling to? Their first responsibility is the fabric of the building.

    Is the freeholder totally separate to the (other?) freeholders?
  • SnowWhiterThanWhite
    SnowWhiterThanWhite Posts: 813 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    AdrianC wrote: »
    The freeholder cannot afford to? Or is unwilling to? Their first responsibility is the fabric of the building.

    Is the freeholder totally separate to the (other?) freeholders?
    The F/H died, the executor is trying to sort the mess out. The F/H had no involvement with the building after selling the flats 20 years ago but retaining the F/H title
    The residents have always sorted their own insurance and repairs on an ad-hoc arrangement. As one of them can no longer afford to contribute, the remaining L/H have contacted the executor
    "Hope for the Best
    Prepare for the worst"
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    SnowWhiterThanWhite wrote: »
    The F/H died, the executor is trying to sort the mess out. The F/H had no involvement with the building after selling the flats 20 years ago but retaining the F/H title
    The residents have always sorted their own insurance and repairs on an ad-hoc arrangement. As one of them can no longer afford to contribute, the remaining L/H have contacted the executor
    Oh, gawd. What a mess...
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.2K Work, Benefits & Business
  • 600.8K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture