Can a lease clause be amended to base contributions on property size?

beulah_knight

Hi all,

I own a one-bedroom flat that's part of a share of freehold with two other flats. My flat is an extension of the main house, only connected by one wall, and sits on what was originally the garden. The other two flats are within the main house.

Currently, our lease requires all three flats to split costs for maintenance, works, and insurance equally. Given that my flat is smaller and separate, I was wondering if it’s possible to:

1. Change the lease so that contributions are based on the size or value of each property rather than being split equally.

2. Adjust the lease so that the two flats in the main house cover their own maintenance costs, and I only pay for costs related to my flat (except for shared wall expenses, which would still be split three ways).

We’re potentially looking at a lease extension soon, and I want to explore options that might reduce my interactions with my fellow freeholders and/or make the contributions to works fairer. Unfortunately, relations between the other two freeholders are strained due to ongoing disputes, which has made the situation difficult for me.

Any advice on whether these changes are feasible or how best to approach this would be greatly appreciated.

Thanks in advance! 🙂

Emmia

You can change the lease, but the problem will be I doubt your fellow freeholders will agree to pay more, so you can pay less. What's the benefit for them?

We live in a block where the charges are done on the size of flat, so we pay on that basis - but that's how it was set up when it was converted, so we're still  liable for a percentage of roof repairs (for example) even though we are a few floors down from the roof.

anselld

It is possible if all agree but why would they?  Then there would be the legal costs of amending all three leases; even if the did agree it is going to take a long time for any savings to pay those off.

eddddy

beulah_knight said:

Adjust the lease so that the two flats in the main house cover their own maintenance costs, and I only pay for costs related to my flat (except for shared wall expenses, which would still be split three ways).

I suspect that the leases already say that each flat owner is responsible for maintenance and repair costs for their own flat. (The extent of each flat will be specified in the leases.)

And the leases probably say that the freeholder(s) are responsible for maintenance and repair of the structure of the building (walls, roofs, etc), plus any common areas, plus buildings insurance. And those cost are split between the 3 flat owners.

Have the other 2 flat owners been asking you to contribute to the cost of maintenance and repairs of their flats?

DullGreyGuy

beulah_knight said:
I own a one-bedroom flat that's part of a share of freehold with two other flats. My flat is an extension of the main house, only connected by one wall, and sits on what was originally the garden. The other two flats are within the main house.

Currently, our lease requires all three flats to split costs for maintenance, works, and insurance equally. Given that my flat is smaller and separate, I was wondering if it’s possible to:

1. Change the lease so that contributions are based on the size or value of each property rather than being split equally.

2. Adjust the lease so that the two flats in the main house cover their own maintenance costs, and I only pay for costs related to my flat (except for shared wall expenses, which would still be split three ways).

We’re potentially looking at a lease extension soon, and I want to explore options that might reduce my interactions with my fellow freeholders and/or make the contributions to works fairer. Unfortunately, relations between the other two freeholders are strained due to ongoing disputes, which has made the situation difficult for me.

Any advice on whether these changes are feasible or how best to approach this would be greatly appreciated.

In your proposal on 1 how would you know the value of all three flats at any given time? If one puts in a new kitchen why should they then pay more for the roof repairs?

I have had a leasehold where costs were recharged based on square meterage and that remains constant so that is doable. 

Doing "own building" has a lot of potential problems and doesnt solve the issue with things like subsidence that is likely to impact the whole site. Better each take a share of the whole. 


You are basically asking them to pay more, they can out vote you on any proposal, so you need to make them an offer that makes them willing to pay more for the next 30 years of ownership. Unless you are willing to give them a large sum of money up front and the two owners arent think of staying for 30 years then I wouldnt be entertaining any proposal to have me pay more if I were them. 

user1977

anselld said:

Then there would be the legal costs of amending all three leases

And if anyone has a mortgage, their lender would also have to agree (so admin costs for them, possibly a revaluation, possibly a separate solicitor...).

beulah_knight

Thank you for your feedback. I think you're absolutely right that my fellow leaseholders are unlikely to agree to me being exempt from contributing to repairs on the main house. Although, technically, they wouldn’t have to contribute to any repairs on my property either, which could save them some money.

Perhaps the most practical approach, as you mentioned, is to base contributions on square meterage.

Unfortunately, the situation between the other two freeholders is extremely hostile. This has left me either covering my own repair costs or avoiding raising necessary repairs because the process between them is so confrontational.

For the past four years, I’ve been trying to get all of us to agree to a lease extension to ensure the leases are the same length. However, this has been blocked by one of the freeholders, who insists on a clause preventing the other from playing the accordion in her garden.

I now feel trapped between two highly combative individuals whose neighbour dispute has turned every freehold matter into a drawn-out and hostile process. 

saajan_12

What you COULD draft a new lease is very different to what you will practically be able to negotiate to change an existing lease. Currently you have an agreement to pay 33% which will translate to £X (even if that £X isn't known yet because it depends on future costs, but we can go with an estimate). 

In order to change it to £Y contribution to service charges, the only way the others would (rationally) agree is if you pay them the estimated difference £X - £Y to sign. So overall you don't end up any better off.