Shared freehold with neighbour. Major repairs needed, on universal credit with no savings

queenofcats

I’m in a big jam, I own my flat and share of freehold with one other. When I moved in I asked if we could set up a fund for repairs. But she refused.
I did put aside some money, but my health deteriorated, had to stop working and go on Universal Credit, and spend my savings on social care.

my neighbour today told me that her flat walls and ceiling are cracking and damp, and we need major structural repair that could cost thousands.
I have no idea how I can afford it, I can barely afford my bills. I own my flat outright but I can’t do an annuity for 4 years as I’m only 51. 

Archie_Duke

74jax said:

Do you have insurance? 

Insurance won’t pay out for defects due to poor maintenance though. Structure doesn’t start cracking and being damp through many insurable conditions.

GentleGiant01

It may be worth chatting to a good mortgage broker - I wonder if there are any options for a *small* mortgage? I suspect not, if you’re struggling to pay bills though this may make it worse. Are you able to take in a lodger? Might not help right away but at least that way you can get something saved up 

eddddy

It's a tough one.

You jointly own the freehold - and I guess you probably haven't signed a declaration of trust with your neighbour. So, to be honest, if you refuse to pay, it will probably be very difficult for the neighbour to do anything about it.  But the building will be left cracked and damp, and gradually deteriorate. 


And your neighbour might have a very low opinion of you - if you refuse to agree to repairs, so she has to live in a damp flat, which will probably be unsaleable due to the dispute between you both.


It would be a big ask, but can your neighbour afford to lend you your half of the money (i.e. pay for all the repairs herself)?  And maybe put a charge on your flat? 

That way your neighbour gets to live in a dry flat, and she could sell it, if she wants to. But she'd have to wait until you sell your flat (or you get equity release) to get her money back from you.

Again, your neighbour might see that as a 'nasty tactic' - she may feel 'forced' to lend you money, in order to make her flat habitable and saleable. 

HampshireH

queenofcats said:

I’m in a big jam, I own my flat and share of freehold with one other. When I moved in I asked if we could set up a fund for repairs. But she refused.
I did put aside some money, but my health deteriorated, had to stop working and go on Universal Credit, and spend my savings on social care.

my neighbour today told me that her flat walls and ceiling are cracking and damp, and we need major structural repair that could cost thousands.
I have no idea how I can afford it, I can barely afford my bills. I own my flat outright but I can’t do an annuity for 4 years as I’m only 51. 

Deep breath.

You need to see what report the neighbour has to evidence significant structural works are required 

They rarely just happen. What's causing the damp can you see from your flat? Presumably you are top floor and neighbour is ground floor 

Would be odd for her walls and ceilings to be damp unless condensation or if top floor a roof leak/gutters.

Likelihood of ceilings being damp on a ground floor flat would be from a leak or again condensation .

Has the neighbour shown you the damage?

Do you have any mirroring damage? 

If the cracking is internal only and on the plasterboard (if that's what it is) it's unlikely to be a joint responsibility - check the lease. It could be cosmetic and therefore leaseholder responsibility.

Lots of things to consider before panicking.

canaldumidi

queenofcats said:

.....

my neighbour today told me that her flat walls and ceiling are cracking and damp, and we need major structural repair that could cost thousands.
I have no idea how I can afford it, I can barely afford my bills. I own my flat outright but I can’t do an annuity for 4 years as I’m only 51. 

Yes the first thing to do is get a handle on the structural issue. Where has the neighbour got their information? A builder? A friend? A surveyor?

Has the neighbour got a written report of the problem and its causes? Has the neighbour got 3 quotes for the repair? If so, are they for identical repairs (or have perhaps 3 builders quoted to do different types of repair!)? Have you seen the reports/quotes. Got copies?

'Cracking and damp' might be caused by internal condensation which could be down to the individual leaseholder to deal with.

So before panicking you need to get a good understanding of the problem.

queenofcats

Thank you all for your replies.. yes I’m ground floor .. she said the damp was on the wall I don’t think the damp was on her ceiling, but the cracks, she says are both wall and ceiling..I haven’t seen it, she’s very unamiable at the best of times, I’ve asked her to send me some photos.
I don’t have any mirroring damage.l I do run 3 dehumidifiers as I had damp in my last flat and I try and prevent it.
I am surprised that in the almost 4 years I’ve lived here, it’s the first she has mentioned, and when I bought it, it didn’t come up in my survey.
of course the last thing I want to do is not be able to pay, I was praying there would be nothing major until I could get some money back from annuity in 4 years!
I have shared buildings insurance, but no contents insurance.She works in insurance amd said that it wouldn’t be covered. 
 

canaldumidi

You are a joint freeholder. This issue may be the (joint) responsibility of the freeholder (owner of the building), or may be the responsibility of the leaseholder (owner of the flat).

Until she provides you with proper evidence, you don't know, and therefore cannot be expected to accept responsibility.

And even if she does provide evidence (eg a surveyor's report) that it falls to the responsibility of the freeholder (jointly she and you), you will need to know precisely

a) what is the cause

b) what is the proper remedy and

c) what are the 3 comparative quotes for the work.

At present you have none of the above information, and therefore you have no liability.

If she has simply asked you to agree to pay £X, then ask for the above, in writing, or at the least ask to view the damage yourself so you can make a preliminary assessment about whether freeholder investigation (as opposed to leaseholder remedy like proper ventilation) is warranted.

TripleH

I agree with the above, without proper evidence of damage and quotes, 'structural repairs in her flat' could mean she wants you to fork out for cosmetic procedures for her.

It might also be that her possible neglect has caused issues in her flat and she is waving freehold to get you to help pay when identical issues in your flat would be dismissed as 'your responsibility'.

This is in no way discouraging people's responsibilities as home owners but I would never pay a demand for a bill without agreeing to it first and without supporting paperwork. In a shared freehold, if the other party had work done without my consent especially if it was not  obvious work, I'd argue I was no party to any contract, hence no liability and place the work on the other party to demonstrate what reasonable costs I should pay. This assumes we are both owner occupiers so on site and easily contactable.

aoleks

something doesn't sound right here... damp is something that needs to be looked at properly, to identify where it comes from, but it's not as big of a problem as people would have you believe. it might also be condensation, if you don't have the same problem, so nothing to do with you.

as for cracks, it's such a vague term that you can barely take it seriously. we need more information:

- when were you told about this?
- was there a mention of any problems before?
- who advised the neighbour that "structural" work needs doing?
- have you seen any official (RICS) reports?
- would you be able to get a second opinion?
- what's the current set up? (house? split flat in an old house? apartment? which floor are you on? which floor is the neighbour on? any other neighbours? where are the cracks and the damp localised (which room, which corner, what height?) etc.)