Bank account for Freeholder’s float / building?

John_Chip

We ( 4 freeholders) need to open a basic bank account to put money into to run our block of 6 flats.

It would hold a float of around 1K and we would use it to pay for contractors, building insurance, quarterly fire alarm direct debit etc.

With 3 individuals allowed to make payments from it.

We are not forming a limited company, and it wouldn’t be a business account.

Does anyone know a bank which has a bank account product that would fit this?

I have been to a few of the big banks on the high street and they are saying it’s a business account that we need(?)

Someone here must have experience of opening a similar account.

Thanks in advance

john C

pinklady21

Maybe a Treasurer's account? Would need some kind of formal constitution or other document for your freeholder's association. A bit like a tenant's association or similar I suppose?
I have used RBS for such bank accounts in the past, was free of charge, provided transactions did not go over a set annual limit.
You are a not for profit association looking after the interests of your tenants, so agree a business account might not fit the bill for this.

[Deleted User]

I used a business account. Thou i think you should re think having 1k just to pay bills! What about repairs?
each flats (4) pays £50 a year ground rent and then £30 a month service charge. That pays the bills you outlined and leave us money for repairs or replace.
We had to repair stuff as unless it a big job don't want to use building insurance.

John_Chip

Thanks, 1K would just be an amount to hold in there - we would top it up, reach into our own pockets for major works. We have just done a bunch of major works so we don’t anticipate massive spending for a while.

John_Chip

!!!8212;!!!8212;- Another reason we need an account is that our present management company (who we are leaving next month) will not pay the funds they are holding into any of our personal accounts, so we need another account to get those (considerable) funds paid to us.

Is there a way around that without opening a bank account? !!!8212;- pay the funds to a solicitor who can then release them to us?

[Deleted User]

I am part of an RTM company which is Ltd and we opened a treasurers account. We all pay in a monthly sum and this is for general bills like buildings insurance, ground rent, accountants fees and any minor works. Like you major works will be out of our own pockets.

[Deleted User]

John_Chip wrote: »

Thanks, 1K would just be an amount to hold in there - we would top it up, reach into our own pockets for major works. We have just done a bunch of major works so we don’t anticipate massive spending for a while.

That is good! We struggle to get money off people for small stuff so god help us when the roof need doing. thou the way we doing it now the service charge is leaving us plenty of money in the bank each year now..
We had an owner who would not pay a penny. No ground rent or service charge. When he went to sell.. he had no choice to pay up as the other 3 hold up signing the freehold over. he ended up paying .

John_Chip

We have just been through 5 years of dealing with 2 non payers - same as you they had to pay up when they sold. Now - fingers crossed - we have a building of 6 people who are willing and able to pay, hence we are moving to self management - and hence the need to find a suitable bank account to hold collective funds.

[Deleted User]

John_Chip wrote: »

We have just been through 5 years of dealing with 2 non payers - same as you they had to pay up when they sold. Now - fingers crossed - we have a building of 6 people who are willing and able to pay, hence we are moving to self management - and hence the need to find a suitable bank account to hold collective funds.

It's such a pain when you get people like these. Especially when none of them help with the maintence of the property. I expect they just rent it out and not care. If it wasnt for me the place be a mess. Hench why me and the wife are management directors