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!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Who is the MA working for?

If I have a share of freehold in a property, and I am also a director in the ltd company of the property along with 3 more people, who is the MA working for? The Ltd, i.e. me?
And what happens if a freeholder who is also in that Ltd breaches a clause of the lease? If the MA tries to enforce the lease on her, who would he do it for? The Ltd, i.e her and the other 3?
Can someone explain please?

Comments

  • NeilCr
    NeilCr Posts: 4,430 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    They work for the Management Company and  enforce on their behalf
  • Skag
    Skag Posts: 480 Forumite
    Part of the Furniture 100 Posts
    NeilCr said:
    They work for the Management Company and  enforce on their behalf
    I'm confused.
    And who does the management company work for? 
  • NeilCr
    NeilCr Posts: 4,430 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 14 February 2020 at 9:44AM
    You and your fellow freeholders are the Management Company. (You said you were a Ltd)

    You employ the Managing Agent and they work for the Management  Company (I,e all freeholders). Directors of the Management Company (of which you are one) direct the Managing Agent on behalf of all freeholders



  • eddddy
    eddddy Posts: 18,547 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 14 February 2020 at 10:09AM
    Skag said:
    If I have a share of freehold in a property, and I am also a director in the ltd company of the property along with 3 more people, who is the MA working for? The Ltd, i.e. me?
    And what happens if a freeholder who is also in that Ltd breaches a clause of the lease? If the MA tries to enforce the lease on her, who would he do it for? The Ltd, i.e her and the other 3?
    Can someone explain please?
    From your post, it sounds like there are 6 entities involved:

    • 1. The freeholder (the freeholder is a company, probably with 4 directors / shareholders - Mr A, Mr B, Mr C and Mr D)
    • 2. Leaseholder 1 (Mr A)
    • 3. Leaseholder 2 (Mr B )
    • 4. Leaseholder 3 (Mr C)
    • 5. Leaseholder 4 (Mr D)
    • 6. A Managing Agent (Who is employed by the freeholder, because the freeholder hasn't got the time or skills to do all the admin etc, themselves.)

    If, for example, Mr A breaches his lease, the freeholder can take enforcement action (starting with sending a letter, etc).

    But the freeholder might decide to ask the Managing Agent to take enforcement action on the freeholder's behalf. (i.e. The Managing Agent sends a letter on behalf of the freeholder.) - because the freeholder hasn't got the time or inclination to do it themselves.
  • Skag
    Skag Posts: 480 Forumite
    Part of the Furniture 100 Posts
    edited 14 February 2020 at 12:10PM
    eddddy said:
    Skag said:
    If I have a share of freehold in a property, and I am also a director in the ltd company of the property along with 3 more people, who is the MA working for? The Ltd, i.e. me?
    And what happens if a freeholder who is also in that Ltd breaches a clause of the lease? If the MA tries to enforce the lease on her, who would he do it for? The Ltd, i.e her and the other 3?
    Can someone explain please?
    From your post, it sounds like there are 6 entities involved:

    • 1. The freeholder (the freeholder is a company, probably with 4 directors / shareholders - Mr A, Mr B, Mr C and Mr D)
    • 2. Leaseholder 1 (Mr A)
    • 3. Leaseholder 2 (Mr B )
    • 4. Leaseholder 3 (Mr C)
    • 5. Leaseholder 4 (Mr D)
    • 6. A Managing Agent (Who is employed by the freeholder, because the freeholder hasn't got the time or skills to do all the admin etc, themselves.)

    If, for example, Mr A breaches his lease, the freeholder can take enforcement action (starting with sending a letter, etc).

    But the freeholder might decide to ask the Managing Agent to take enforcement action on the freeholder's behalf. (i.e. The Managing Agent sends a letter on behalf of the freeholder.) - because the freeholder hasn't got the time or inclination to do it themselves.
    The leaseholders actually own a share of freehold if that changes things.
    If A brakes the lease, he is a freeholder too, so the MA, will take action on behalf of another freeholder?
    And, indirectly, the MA works for me, as well as all the others, right?
  • Skag
    Skag Posts: 480 Forumite
    Part of the Furniture 100 Posts
    NeilCr said:
    You and your fellow freeholders are the Management Company. (You said you were a Ltd)

    You employ the Managing Agent and they work for the Management  Company (I,e all freeholders). Directors of the Management Company (of which you are one) direct the Managing Agent on behalf of all freeholders



    What's in the power of the directors to direct? Anything?
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Skag said:
    eddddy said:
    Skag said:
    If I have a share of freehold in a property, and I am also a director in the ltd company of the property along with 3 more people, who is the MA working for? The Ltd, i.e. me?
    And what happens if a freeholder who is also in that Ltd breaches a clause of the lease? If the MA tries to enforce the lease on her, who would he do it for? The Ltd, i.e her and the other 3?
    Can someone explain please?
    From your post, it sounds like there are 6 entities involved:

    • 1. The freeholder (the freeholder is a company, probably with 4 directors / shareholders - Mr A, Mr B, Mr C and Mr D)
    • 2. Leaseholder 1 (Mr A)
    • 3. Leaseholder 2 (Mr B )
    • 4. Leaseholder 3 (Mr C)
    • 5. Leaseholder 4 (Mr D)
    • 6. A Managing Agent (Who is employed by the freeholder, because the freeholder hasn't got the time or skills to do all the admin etc, themselves.)

    If, for example, Mr A breaches his lease, the freeholder can take enforcement action (starting with sending a letter, etc).

    But the freeholder might decide to ask the Managing Agent to take enforcement action on the freeholder's behalf. (i.e. The Managing Agent sends a letter on behalf of the freeholder.) - because the freeholder hasn't got the time or inclination to do it themselves.
    The leaseholders actually own a share of freehold if that changes things.
    If A brakes the lease, he is a freeholder too, so the MA, will take action on behalf of another freeholder?
    And, indirectly, the MA works for me, as well as all the others, right?
    The freeholder is the limited company. The MA should be taking instructions from the company. How the company makes its decisions is its own internal matter.
  • NeilCr
    NeilCr Posts: 4,430 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Skag said:
    eddddy said:
    Skag said:
    If I have a share of freehold in a property, and I am also a director in the ltd company of the property along with 3 more people, who is the MA working for? The Ltd, i.e. me?
    And what happens if a freeholder who is also in that Ltd breaches a clause of the lease? If the MA tries to enforce the lease on her, who would he do it for? The Ltd, i.e her and the other 3?
    Can someone explain please?
    From your post, it sounds like there are 6 entities involved:

    • 1. The freeholder (the freeholder is a company, probably with 4 directors / shareholders - Mr A, Mr B, Mr C and Mr D)
    • 2. Leaseholder 1 (Mr A)
    • 3. Leaseholder 2 (Mr B )
    • 4. Leaseholder 3 (Mr C)
    • 5. Leaseholder 4 (Mr D)
    • 6. A Managing Agent (Who is employed by the freeholder, because the freeholder hasn't got the time or skills to do all the admin etc, themselves.)

    If, for example, Mr A breaches his lease, the freeholder can take enforcement action (starting with sending a letter, etc).

    But the freeholder might decide to ask the Managing Agent to take enforcement action on the freeholder's behalf. (i.e. The Managing Agent sends a letter on behalf of the freeholder.) - because the freeholder hasn't got the time or inclination to do it themselves.
    The leaseholders actually own a share of freehold if that changes things.
    If A brakes the lease, he is a freeholder too, so the MA, will take action on behalf of another freeholder?
    And, indirectly, the MA works for me, as well as all the others, right?
    Yes.

    Although it is a pretty straight line of "command"

    In your situation I'd be getting the MA to enforce on the Management Company's behalf. The directors would be the ones who give the instruction. The MA shouldn't take an instruction from one leaseholder
  • eddddy
    eddddy Posts: 18,547 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 14 February 2020 at 1:50PM
    Skag said:
    eddddy said:
    From your post, it sounds like there are 6 entities involved:

    • 1. The freeholder (the freeholder is a company, probably with 4 directors / shareholders - Mr A, Mr B, Mr C and Mr D)
    • 2. Leaseholder 1 (Mr A)
    • 3. Leaseholder 2 (Mr B )
    • 4. Leaseholder 3 (Mr C)
    • 5. Leaseholder 4 (Mr D)
    • 6. A Managing Agent (Who is employed by the freeholder, because the freeholder hasn't got the time or skills to do all the admin etc, themselves.)

    If, for example, Mr A breaches his lease, the freeholder can take enforcement action (starting with sending a letter, etc).

    But the freeholder might decide to ask the Managing Agent to take enforcement action on the freeholder's behalf. (i.e. The Managing Agent sends a letter on behalf of the freeholder.) - because the freeholder hasn't got the time or inclination to do it themselves.
    The leaseholders actually own a share of freehold if that changes things.
    If A brakes the lease, he is a freeholder too, so the MA, will take action on behalf of another freeholder?
    And, indirectly, the MA works for me, as well as all the others, right?

    You're confusing yourself - you need to take a step back. Look again at the 6 entities involved.

    So, for example:
    • Mr A is a leaseholder
    • Mr A is a shareholder in the company that owns the freehold
    A leaseholder (like Mr A) is legally required to observe covenants in their lease.

    And, the company that owns the freehold (i.e. the freeholder) is (probably) legally required to enforce covenants in the lease, if another leaseholder (e.g. Mr C) tells them to. (But the freeholder might ask their Managing Agent to enforce covenants on their behalf).

    But people do not always do what they are legally required to do.

    Is this a hypothetical question, or is there a real issue? If you describe the real issue, it might be possible to give you a clearer answer.
  • Skag
    Skag Posts: 480 Forumite
    Part of the Furniture 100 Posts
    eddddy said:
    Skag said:
    eddddy said:
    From your post, it sounds like there are 6 entities involved:

    • 1. The freeholder (the freeholder is a company, probably with 4 directors / shareholders - Mr A, Mr B, Mr C and Mr D)
    • 2. Leaseholder 1 (Mr A)
    • 3. Leaseholder 2 (Mr B )
    • 4. Leaseholder 3 (Mr C)
    • 5. Leaseholder 4 (Mr D)
    • 6. A Managing Agent (Who is employed by the freeholder, because the freeholder hasn't got the time or skills to do all the admin etc, themselves.)

    If, for example, Mr A breaches his lease, the freeholder can take enforcement action (starting with sending a letter, etc).

    But the freeholder might decide to ask the Managing Agent to take enforcement action on the freeholder's behalf. (i.e. The Managing Agent sends a letter on behalf of the freeholder.) - because the freeholder hasn't got the time or inclination to do it themselves.
    The leaseholders actually own a share of freehold if that changes things.
    If A brakes the lease, he is a freeholder too, so the MA, will take action on behalf of another freeholder?
    And, indirectly, the MA works for me, as well as all the others, right?

    You're confusing yourself - you need to take a step back. Look again at the 6 entities involved.

    So, for example:
    • Mr A is a leaseholder
    • Mr A is a shareholder in the company that owns the freehold
    A leaseholder (like Mr A) is legally required to observe covenants in their lease.

    And, the company that owns the freehold (i.e. the freeholder) is (probably) legally required to enforce covenants in the lease, if another leaseholder (e.g. Mr C) tells them to. (But the freeholder might ask their Managing Agent to enforce covenants on their behalf).

    But people do not always do what they are legally required to do.

    Is this a hypothetical question, or is there a real issue? If you describe the real issue, it might be possible to give you a clearer answer.
    Nope, I've just been trying to get my head around it, freehold vs leasehold vs MA, and where the Ltd stands it etc.
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
  • 354.4K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.3K Work, Benefits & Business
  • 604K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.5K 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.