Expected to pay for another Flats new windows

Paul_Silsby

First here is the Backgrouind information.
I live in a Leashold flat and own a share of the company that owns the Freehold.
There are currently two directors who are relativly new as the pevious ones resigned.
The Leases are clear that the flat owners are all responsible for their own windows (apart from the painting).
The owner of the offending Flat is also not paying any Maintenance

I have just been informed that because of the dangerous condition of windows in a unoccuped flat that the Council have issued an Abatement order and will be replacing them and billing the Freehold Company for the full ammount.
The Company has no monies itself as it does not even collect Ground Rent, so the Directors have informed me that they will be billing myself and the other Leasholders for this.
I have asked on what legal basis I can be made to do this as my Lease is clear that I am not liable for windows other than my own and as only being a Shareholder I have no financial responsibilities to the Freehold Company.
They are telling me that an Abatement order overrides this and that i will need to pay, but I have seen no proof of this being true.
Please help as I will be expected to pay around £3,500 as it currently stands. Also my own wondows are rotten and need replacing and this would leave me in a position of not being able to afford to replace them.
Many thanks'
Paul Silsby

Comms69

1: Why hasn't the management company been collecting yearly maintenance?
2: Why was there no sinking fund?
3: Your lease is only part of the issue, you also own a share of freehold
4: What steps have been taken to recall the lease from the offender - you say they haven't paid maintenance (but then it seems neither have you)?
5:
Why you'd use your real name i'm unclear, but that seems unwise

Paul_Silsby

Hi Comms 69

Thanks' for your comments.
I do not know why the Company has not been collecting Maintenance from the offending flat apart from the fact that the owner of the offending flat was a Director and minimal information came from the Directors. All the other flat owners including myself are up to date with Maintenance payments. It is only becoming clear what might have been going on since the previous Directors have left and we now have a new Managing Agents.
Yes I own a share of the Freehold Company (Limited Liability by Shares), I am not clear how Shareholders become liable for Company debts ?
Maybe its daft to use my name , but then I am not trying to act illegally ?

Comms69

Paul_Silsby wrote: »

Hi Comms 69

Thanks' for your comments.
I do not know why the Company has not been collecting Maintenance from the offending flat apart from the fact that the owner of the offending flat was a Director and minimal information came from the Directors. All the other flat owners including myself are up to date with Maintenance payments. It is only becoming clear what might have been going on since the previous Directors have left and we now have a new Managing Agents.
Yes I own a share of the Freehold Company (Limited Liability by Shares), I am not clear how Shareholders become liable for Company debts ?
Maybe its daft to use my name , but then I am not trying to act illegally ?

It just seems to me either:


the director has run off with the money
OR
all the leaseholder were underpaying for a number of years, and the lack of a sinking fund is now catching up to you all

pretamang

so is the 'offending flat' the one the unoccupied one with the bad windows?

Surely the Freehold company should pursue this leaseholder for the cost of their new windows.

Linton

If the Freehold is owned by a company unable to pay its debts could it be forced into bankruptcy and its assets sold? Perhaps not what the leaseholders may want.

Paul_Silsby

Yes... I would have thought that all they need to do is Invoice the Leasehold flat owner for the Councils costs of replacing the Windows. I'm glad you see it that way.
Thanks'

Paul_Silsby

Well yes, I suspect so. The Freehold Company has no Debts currently and is a non trading non profit making company owned by the Shareholders. In the 36 years that I have lived there it has never incurred any costs of its own, as all expenditure is determined by our Leases. What has now happened is because of the Council Abatement order (which was caused by the flat that is not paying it's maintenance), the Council is going to bill the Freehold Company for having the Windows replaced by them and not the Leaeshold owner of the Flat who is not paying and expects everyone else to.

eddddy

I would inform the council that the person they need to serve the abatement notice on is the leaseholder...

... and provide the name and address of the leaseholder (perhaps supported by a copy of the leasehold title register downloaded for £3 for the land registry website)....

... plus perhaps a copy of the clause in the lease that confirms that the windows are the leaseholder's responsibility.

eddddy

On a more general level, as joint freeholders it sounds like you need to get a grip on the leaseholder who is not paying maintenance/service charges.

Firstly, you need to make sure you are demanding payment in the correct format.

For example:

3.1 Demands for service charges

Demands for service charges payable to the landlord must be in writing and must contain the landlord’s name and address. Failure to provide the landlord’s name and address on the demand means the service charge is not payable until this information is given.

...

the landlord must issue the demand within 18 months of his incurring the cost. If the demand is issued later than this, the landlord cannot recover the costs at all

...

Any service charge demand and reminder letter must be accompanied by a formal summary of rights and obligations whose content and form is prescribed by Parliament.

Link: https://www.lease-advice.org/advice-guide/service-charges-other-issues/

And if they are refusing to pay...

11. FORFEITURE AND POSSESSION

A leaseholder who fails to pay service charges, ground rent or administration charges which are due, could face sanctions from the landlord. These could include the landlord seeking a county court judgement, approaching the leaseholder’s mortgage company and ultimately the landlord could seek to forfeit the lease and repossess the house or flat.

Link: https://www.lease-advice.org/advice-guide/service-charges-other-issues/

EachPenny

Why does the Council need to be allowed to replace the windows? It is likely to cost you more for the Council to do the work than for the Freehold company to get the work organised itself - this would need to be confirmed by getting quotes, but work in default by local authorities is rarely done on the cheap.

Also, I'd be asking the question why the windows need to be replaced on an unoccupied flat - if the issue is one of safety then the first step would be making the windows safe, which could potentially be done by boarding up rather than having spanking new energy efficient windows installed. There might be knock-on effects on the freehold and value of the other flats by having a boarded up neighbour, but this might be an acceptable approach in the short-term whilst the issues of liability are resolved. The priority ought to be making sure the windows are not likely to fall out and injure/kill someone, as the costs of that would be several orders of magnitude greater.

The only other thing that comes to mind is whether the building is listed or in a conservation area? If so then that might limit the available options, replacement of the windows with the correct specification and design would be essential.