Director of leasehold

Helplesssheep

Not sure which is the right forum but for this. I’ve got the opportunity to become a director of my leasehold. What are the pros and cons? It is 7 flats, 6 leaseholders (one owns two of the flats), no one else director right now. Management company is ok. Some of the leaseholders well overdue on payments.

mark_cycling00

It's good to have residents as directors and you may learn a lot and help keep costs down.

You may get inundated with complaints and queries from one resident (there's always one). 

There needs to be director insurance in place to protect you from any litigation. 
Your name and address will come up in the companies house website (if you have any stalkers it can be a pain in the bum)

You don't get to to lots of exciting plans and changes because the law protects leaseholders from extravagant directors who may get the position in order to improve and then sell their property.

It's more about scrutiny. We had a repair bill reduced from £80,000 to £25,000

Helplesssheep

mark_cycling00 said:

It's good to have residents as directors and you may learn a lot and help keep costs down.

You may get inundated with complaints and queries from one resident (there's always one). 

There needs to be director insurance in place to protect you from any litigation. 
Your name and address will come up in the companies house website (if you have any stalkers it can be a pain in the bum)

You don't get to to lots of exciting plans and changes because the law protects leaseholders from extravagant directors who may get the position in order to improve and then sell their property.

It's more about scrutiny. We had a repair bill reduced from £80,000 to £25,000

Thanks super helpful. So the only cost on me is the insurance cost? I’ve already been quoted that amount. 

mark_cycling00

I don't think there should be any cost to you. For me, insurance and any excess amount was covered by service charges paid by the leaseholders. 

Maybe have a look into the impacts of being a company director for you specifically.