Freeholder ‘proposal to strike off’

Pirsta

I own a leasehold flat in a property that has two flats in it. The freeholders were two people named on the company. We have had severe issues with damp and it’s been such a struggle to get hold of the freeholder and then argue with him and also a management company (that I suspect he owns also) that when we came to fix the damp issues it has clearly worsened from the original problems. We know this as we had an offer on the flat and the buyer kindly shared the survey after pulling out the sale and damp is everywhere due to zero maintenance.

We have noticed that his company on companies house is now showing as ‘proposal to strike off’. One of the two directors (man who we were mostly dealing with) has resigned.

We’ve teamed up with the owner of the other flat who was sold it 2 years ago and has had significant issues with damp, drainage and mould.

can we object to this proposal? Can we force the freeholder into doing something or does it then fall to the ‘crown’ to do something and if so is this better anyway?

any advice would be great. I’m aware we are on limited time from the proposal of (I think) 2 months.

thanks 

DullGreyGuy

You say the freeholders are two people but then mention a company and a management company that you think the freeholders also own?

If a company owns the freehold then it is the freeholder, the "two people" are directors, employees or shareholders but not the freeholders.

Which company is being struck off? The Freeholder or the Management Company? What is the listed reason for it being struck off?

eddddy

Is it an Involuntarily Striking-Off - e.g. because the company hasn't filed accounts?

If so, the threat of the company being struck-off often spurs the directors into action, and they submit accounts.

Pirsta said:

Can we force the freeholder into doing something or does it then fall to the ‘crown’ to do something and if so is this better anyway?

In theory, you can take legal action against the current freeholder for beaching the covenants in the lease (i.e. not doing repairs) - you can get a court order instructing the freeholder to do the repairs. But that's expensive.

However, if ownership transfers to the Crown, things would probably be worse - the Crown won't observe any covenants in the lease. They won't even insure the building. So no repairs would be done by them. 



Perhaps you and your neighbour should look at doing one the following options:

• Make an informal offer to the freeholder to buy the freehold of the building - so you can (probably) take over responsibility for repairs. 

• Start the legal process to compulsorily purchase the freehold - it's called 'Statutory Collective Enfranchisement'.   See https://www.lease-advice.org/advice-guide/ce-getting-started

• Start the legal process to take over management of the building - it's called 'Right to Manage'. See: https://www.lease-advice.org/advice-guide/right-manage/

Pirsta

DullGreyGuy said:

You say the freeholders are two people but then mention a company and a management company that you think the freeholders also own?

If a company owns the freehold then it is the freeholder, the "two people" are directors, employees or shareholders but not the freeholders.

Which company is being struck off? The Freeholder or the Management Company? What is the listed reason for it being struck off?

Hi yes you’re right the company owns the freehold and the two people are directors. There are overdue accounts on the business so are you saying it could be them or it could be companies house for non compliance?

Pirsta

Thanks so much. I think both flats just want to force these negligent owners into paying for the repairs which are so much worse but I don’t know how we can do that. I don’t think any of us are interested in owning the freehold, we are trying to sell our flat. 

eddddy

Pirsta said:

Thanks so much. I think both flats just want to force these negligent owners into paying for the repairs which are so much worse but I don’t know how we can do that. 

Just to clarify - the freeholders don't pay for the repairs. It's the leaseholders who pay for repairs (i.e. you and your neighbour).

The freeholders should (probably) arrange the repairs, and then send the bill to you and your neighbour.

Like I say, you can get a court order to 'force' the freeholder to arrange the repairs - but you would still have to pay for the repairs.


(Or you and your neighbour might be able to arrange to get the repairs done - is that something you want to do?)

LegallyLandlord

As per Eddddy, the freeholder isn’t like a private landlord. Leaseholders pay for repairs via the service charge, which the freeholder levies under the lease, usually via a management company. 

Have you thought about clubbing  together to buy the freehold?