Block management - freeholders who dont care

herc182

Dear all,
I posted a few years back and the issue is still persists.
There is a 4 flat block that 3 of us are freeholders to. I am company secretary for the LTD company that was set up for the freehold. Flat 1 doesn't live here and rents out his flat. He doesn't care about any block matters and doesn't respond to emails/ WhatsApp. Makes it hard to move forward with communal matters.

I today resigned as company secretary and told flat 3 owner (who lives here) to take over.

Legally, what could we threaten flat 1 owner to do. He is also a unanimously awful landlord confirmed by all his previous 4 tenants - doesn't respond to issues and is repeatedly rude to them.

His backstory is that he was selling this flat to fund his house that he bought but the buyer pulled out last minute. So he doesn't want it, but as a freeholder has duties to perform.

in other news, I have recommended a management company to run the block. Do they do company accounts etc?
thanks

HampshireH

Just touching on your other news. If you have recommended a management company its best to check what they do before recommending them?

They will do whatever they are paid to do as part of the specification provided by those who employ them (freeholders) & the remit of that particular companies offer.

You will all need to pay though. Is this achievable with an absent freeholder who fails to respond?

G_M

What do the articles of association say?

Most require majority decisions in which case you and the other (pro-active) joint freeholder can make the required decisons and then enforce the costs on the other two leaseholders.

Or do all decisions of the freeholder company have to be unanimous?


I don't see how employng an expensive Manco can help. If the absent joint freeholder won't approve decisions, how are you going to appoint the Manco? And what will they achieve that you can't?

herc182

HampshireH wrote: »

Just touching on your other news. If you have recommended a management company its best to check what they do before recommending them?

They will do whatever they are paid to do as part of the specification provided by those who employ them (freeholders) & the remit of that particular companies offer.

You will all need to pay though. Is this achievable with an absent freeholder who fails to respond?

sorry, I meant that i recommended we employ a company to do the maintenance of the block. I haven't recommended a specific company.

herc182

G_M wrote: »

What do the articles of association say?

Most require majority decisions in which case you and the other (pro-active) joint freeholder can make the required decisons and then enforce the costs on the other two leaseholders.

Or do all decisions of the freeholder company have to be unanimous?


I don't see how employng an expensive Manco can help. If the absent joint freeholder won't approve decisions, how are you going to appoint the Manco? And what will they achieve that you can't?

Will need to read the said articles. I know nothing about ltd companies or freeholding duties. I bought a flat, 2 years later was made secretary as the then current one sold his flat. The absent freeholder responds once in a while, so if we get his buy in, job done. A Manco will do the maintenance and source tradesmen to do the jobs that need doing. Currently I solely have to do all of this and have a full time job, 4 year old daughter as well as 7 week post brain surgery. So I don't want this on my plate anymore! So am hoping Manco just sorts out things like lighting, drive maintenance, fences etc etc

herc182

actually, don't know where those articles are. I logged onto companies house website but there isn't an option to download them. The company was set up in 2002 and secretary changed hands a few times, so who knows where they are!

robatwork

herc182 wrote: »

actually, don't know where those articles are. I logged onto companies house website but there isn't an option to download them. The company was set up in 2002 and secretary changed hands a few times, so who knows where they are!

Really?

Go here, put in the company name, Order information for this company, and keep clicking MORE until you get to 2002

http://wck2.companieshouse.gov.uk//wcframe?name=accessCompanyInfo

Then you can buy them for £1

Also, what's your registered address? - you need one of these as you're a limited company. The M&A should be there too.

G_M

Are you going to also outsource collecting the service charges? The ground rent? Annual accounts?


To be honest, the time/effort in initially vetting and contracting a Manco, plus the ongoing monitoring of them (yes, some are ruu=bbish so you need to monitor) hardly makes it worth while.Quite apart from the cost.



In large blocks it makes sense, but in a 4 flat building......? I appreciate you have a lot going on but... is there no way you can pass it on to the other freeholder? Or even pursuade the 4th leaseholder to buy a share and help?

[Deleted User]

We same here 4 x flats. The owners have share of the LTD. 1 Had never bother paying or responed to email. Luckly all request ior wirk need doing comes down to majority of votes. He did not pay anything but we keep a record what was paid into the company each month. We are paying for the building insurance the hallway lighting and fire checks etc that is needed by law.
When he went to sell. ( He was desparate to sell to funds his new house), he could not sell till he paid the 1.7k he had own to the LTD. His Solicotors told him he had to pay to sell as it in the freehold. Never seen a man so angry but he paid up.
It was not much.
35 per month and 50 quid ground rent a year.

Soundgirlrocks

Depending on service charged that need collecting etc you might find a management company that will help with the administration aspects of the block, issuing service charge demands, collecting moneys, acting as secretary and doing the company house bits is the way to go, you still appoint and decide what works you (and other freeholders want to do) but they deal with the administrative burden.

It works well for us as a block of 7.

[Deleted User]

I am also in an unwanted situation.
I had to set up an RTM Ltd co before the managing agents / Freeholder bankrupted us and one flat owner couldn't be traced in time so had to go ahead with the other flat owner who turns out to be spending a great deal of time being sectioned.


I thought he was just uneducated / illiterate and had to do all the papers myself but as it turns out he is really unsuitable to be a director of the company. Companies House have been less than helpful and I don't know what to do. I have now made con tact with the other flat owner who is happy to be a director but we don't know how to go about it as I've been told by the Bank holding the account we have to have a solicitors letter or his own letter to get him off. I cant get this as I don't know which facility he is in, I don't know him or his family, we need him off as a director of the company and we need him off the bank account as he dips into the service charge money as he is broke