Share of Freehold Issues

Lindrick23

I am seeking advice for a problem I am facing with the management of a building that has been converted into four separate flats called the Terrace property. The freehold is owned by three of these flats, while one is a leasehold. There is no clear structure for managing the building, and essential repairs are not being carried out. Furthermore, the building does not meet the current fire regulations, as there are no fire doors in the other flats. I have installed fire doors in my flat, but there are no working lights in the communal hallway. It is a Victorian-style building that needs repairs to meet the necessary safety standards.

Additionally, the freehold owns a small area of land at the front of the building where wheelie bins are kept for other properties. However, the basement flat owner argues that the bins block their light, so they insist on keeping them on the pathway to the main front door, which is causing inconvenience. I need guidance on the best way to ensure that repair works are carried out and that the building meets the safety standards. 

eddddy

You posted this question before: https://forums.moneysavingexpert.com/discussion/6521741/share-of-freehold-issues

(But it's easier to read this time!) Here's what I replied:

eddddy said:

Unfortunately, a badly managed 'share of freehold' can be a nightmare.

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Are you one of the joint freeholders?


Ideally, the joint freeholders should have signed a 'Declaration of Trust' when they bought the freehold. That would be a document that explains how situations like this should be resolved.
See: https://www.lease-advice.org/article/share-of-freehold-when-joint-owners-should-consider-a-declaration-of-trust/


If no 'declaration of trust' exists, the main options are:

• 1) Try to negotiate a solution with the joint freeholders

• 2) Go to court to get a court order that instructs the joint freeholders to do the repairs (but that might cost hundreds or even thousands in legal fees).

• 3) Apply to a tribunal to appoint a Building Manager. The Building Manager will take over responsibility for managing the repairs to the building. (Again, there will be a chunk of legal fees, plus increased service charges to pay the building manager's fee.)

People sometimes suggest serving a legal notice on the Joint Freeholders that you intend to do option 3 - and then the Freeholders get the repairs done, to avoid a manager being appointed.
See: https://www.lease-advice.org/advice-guide/what-does-appointing-a-manager-mean/

propertyrental

See here for best advice:

Lindrick23

Hello, 

I apologise for my previous message. Thank you for responding and providing helpful information. I am one of the joint freeholders do you know if there is a template available for serving a legal notice to the other two joint freeholders regarding Option 3.
Many Thanks,

eddddy

Lindrick23 said:

I am one of the joint freeholders do you know if there is a template available for serving a legal notice to the other two joint freeholders regarding Option 3.

So you would actually be serving notice on the 3 joint freeholders - so that includes yourself.

It's usually called a Section 22 notice (i.e. Section 22 of the Landlord and Tenant Act 1987).

There's an outline of what needs to be included in the notice here: 
https://www.lease-advice.org/template-document/preliminary-notice-application-for-the-appointment-of-a-manager-2/


In simple terms, you list all the breaches of the lease by the freeholders, and what you want the freeholders to do to address those breaches.

(As you probably realise, in legal matters: Freeholder = Landlord and Leaseholder  = Tenant)

Lindrick23

Thanks again and I will follow your advice and serve a Section 22 notice. As I have to protect my investment and more importantly my safety. It is the only option I have after trying to get work carried out including F.R.A recommendations for 2 years now with no success. Thanks again for your help with this.