New Bank Account for Flat Owners

83dons

I stay in a building with 6 residential privately owned flats and 2 businesses. We have been advised by our local council to set up a bank account with 2 signatories so that monies can be paid into this for common upkeep of the building as per the title deeds. ie so that monies don't go into one person's personal bank account. Myself and another flat owner have agreed to be signatories. Do I need any special type of account for this? Would it be a joint account? Any advice would be useful as would like to set this up asap. If the account could be easily setup online even better! It is likely we will ask everyone to setup up a standing order of £X a month into this account so that we can avoid any large payments for repairs.

xylophone

I stay in a building

How has the council become involved?

There is a building with six flats and two business premises below?

What is the freehold/leasehold situation? you own one of the flats as leaseholder?

What does the lease say about the maintenance of the common parts?

Is a management company to be set up?

Or a " X Block Residents'Association" with Secretary and Treasurer?

https://www.networkhomes.org.uk/media/1298/residents-associations-2016-how-to-guide.pdf may be worth a read.

You will need to contact your chosen bank to ask about their rules and requirements for this type of account.

grumbler

83dons wrote: »

...Would it be a joint account?...

You really don't want this to be a joint current account as it will link you financially with some strangers.
A joint savings account - possibly.

83dons

xylophone wrote: »

Who owns the freehold of the building?

There is no management company?

Not sure what that means? We are 8 separate owners of flats essentially within the one building. There is no overall management company. The title deeds say that all 8 owners are responsible for common repairs to particular areas of the building. It is seemingly good practice to have an account setup that all 8 can pay monies in to for maintenance and this can be used to then pay contractors. I act as the common factor arranging any maintenance after owner meetings to agree this etc.

83dons

grumbler wrote: »

You really don't want this to be a joint current account as it will link you financially with some strangers.
A joint savings account - possibly.

The account essentially will accept payments into it regularly from different people by standing order and occasionally mainly myself or sometimes the other owner (ie online banking access for both to make payments) will perform a BACS transfer to a contractor from the account for work done. Withdrawals will never be required if possible. I am not sure what sort of account to go for.

83dons

xylophone wrote: »

How has the council become involved?

There is a building with six flats and two business premises below?

What is the freehold/leasehold situation? you own one of the flats as leaseholder?

What does the lease say about the maintenance of the common parts?

Is a management company to be set up?

Or a " X Block Residents'Association" with Secretary and Treasurer?

https://www.networkhomes.org.uk/media/1298/residents-associations-2016-how-to-guide.pdf may be worth a read.

You will need to contact your chosen bank to ask about their rules and requirements for this type of account.

It is not council owned all properties are privately owned. It is the council private housing department that has advised that for common repairs it is better residents setup a bank account for that purpose with at least 2 signatories rather than one guy just take monies into his own account. I think this is for security and also they have a sheme of assistance whereby they can contribute funding for absentee owners and this is one of the requirements for them to pay out.

I dont think a resident association is required if all properties are privately owned not sure? It was just to have a common account available for any monies to be collected from all for common repairs.

agrinnall

There are a few hints in your posts that suggest this may be in Scotland, if that is the case then we should know that as you'll probably get some different suggestions (not directly on the account but on how to manage repairs which may impact on the account choice).

83dons

agrinnall wrote: »

There are a few hints in your posts that suggest this may be in Scotland, if that is the case then we should know that as you'll probably get some different suggestions (not directly on the account but on how to manage repairs which may impact on the account choice).

Yes sorry it is in Scotland.

grumbler

https://forums.moneysavingexpert.com/discussion/3552947
https://forums.moneysavingexpert.com/discussion/5178293

xylophone

http://www.gov.scot/Topics/Built-Environment/Housing/privateowners/propertyfactors

https://www.argyll-bute.gov.uk/sites/default/files/Guide_OwnersAssociation_0.pdf

may help.

83dons

grumbler wrote: »

https://forums.moneysavingexpert.com/discussion/3552947
https://forums.moneysavingexpert.com/discussion/5178293

Interesting but the kind of dilemma is that we want 2 signatories (so withdrawals cant easily be made by one person) but we also want online payments (by definition by one person). regular payments to come in by standing order and only occasional payments to go out - maybe best to just have two residents signing for a cheque and no online banking then although seems a bit of a dated idea! Bit of a catch 22. Maybe best to just phone the major chains and ask for suggestions.