Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • John Chip
    • By John Chip 5th Jul 18, 12:11 PM
    • 33Posts
    • 1Thanks
    John Chip
    Bank account for Freeholder’s float / building?
    • #1
    • 5th Jul 18, 12:11 PM
    Bank account for Freeholder’s float / building? 5th Jul 18 at 12:11 PM
    We ( 4 freeholders) need to open a basic bank account to put money into to run our block of 6 flats.

    It would hold a float of around 1K and we would use it to pay for contractors, building insurance, quarterly fire alarm direct debit etc.

    With 3 individuals allowed to make payments from it.

    We are not forming a limited company, and it wouldn’t be a business account.

    Does anyone know a bank which has a bank account product that would fit this?

    I have been to a few of the big banks on the high street and they are saying it’s a business account that we need(?)

    Someone here must have experience of opening a similar account.

    Thanks in advance

    john C
Page 1
    • pinklady21
    • By pinklady21 5th Jul 18, 12:15 PM
    • 658 Posts
    • 473 Thanks
    pinklady21
    • #2
    • 5th Jul 18, 12:15 PM
    • #2
    • 5th Jul 18, 12:15 PM
    Maybe a Treasurer's account? Would need some kind of formal constitution or other document for your freeholder's association. A bit like a tenant's association or similar I suppose?
    I have used RBS for such bank accounts in the past, was free of charge, provided transactions did not go over a set annual limit.
    You are a not for profit association looking after the interests of your tenants, so agree a business account might not fit the bill for this.
    • Summer17
    • By Summer17 5th Jul 18, 12:36 PM
    • 232 Posts
    • 52 Thanks
    Summer17
    • #3
    • 5th Jul 18, 12:36 PM
    • #3
    • 5th Jul 18, 12:36 PM
    I used a business account. Thou i think you should re think having 1k just to pay bills! What about repairs?
    each flats (4) pays £50 a year ground rent and then £30 a month service charge. That pays the bills you outlined and leave us money for repairs or replace.
    We had to repair stuff as unless it a big job don't want to use building insurance.
    • John Chip
    • By John Chip 5th Jul 18, 1:22 PM
    • 33 Posts
    • 1 Thanks
    John Chip
    • #4
    • 5th Jul 18, 1:22 PM
    • #4
    • 5th Jul 18, 1:22 PM
    Thanks, 1K would just be an amount to hold in there - we would top it up, reach into our own pockets for major works. We have just done a bunch of major works so we don’t anticipate massive spending for a while.
    • John Chip
    • By John Chip 5th Jul 18, 1:27 PM
    • 33 Posts
    • 1 Thanks
    John Chip
    • #5
    • 5th Jul 18, 1:27 PM
    • #5
    • 5th Jul 18, 1:27 PM
    !!!8212;!!!8212;- Another reason we need an account is that our present management company (who we are leaving next month) will not pay the funds they are holding into any of our personal accounts, so we need another account to get those (considerable) funds paid to us.

    Is there a way around that without opening a bank account? !!!8212;- pay the funds to a solicitor who can then release them to us?
    • BBH123
    • By BBH123 5th Jul 18, 1:36 PM
    • 711 Posts
    • 1,354 Thanks
    BBH123
    • #6
    • 5th Jul 18, 1:36 PM
    • #6
    • 5th Jul 18, 1:36 PM
    I am part of an RTM company which is Ltd and we opened a treasurers account. We all pay in a monthly sum and this is for general bills like buildings insurance, ground rent, accountants fees and any minor works. Like you major works will be out of our own pockets.
    Save 12k in 2018 challenge #14
    3700/ 10000

    Saving for Christmas 2018 - £1 a day challenge
    #15 120/365
    • Summer17
    • By Summer17 5th Jul 18, 1:47 PM
    • 232 Posts
    • 52 Thanks
    Summer17
    • #7
    • 5th Jul 18, 1:47 PM
    • #7
    • 5th Jul 18, 1:47 PM
    Thanks, 1K would just be an amount to hold in there - we would top it up, reach into our own pockets for major works. We have just done a bunch of major works so we don’t anticipate massive spending for a while.
    Originally posted by John Chip
    That is good! We struggle to get money off people for small stuff so god help us when the roof need doing. thou the way we doing it now the service charge is leaving us plenty of money in the bank each year now..
    We had an owner who would not pay a penny. No ground rent or service charge. When he went to sell.. he had no choice to pay up as the other 3 hold up signing the freehold over. he ended up paying .
    • John Chip
    • By John Chip 5th Jul 18, 2:04 PM
    • 33 Posts
    • 1 Thanks
    John Chip
    • #8
    • 5th Jul 18, 2:04 PM
    • #8
    • 5th Jul 18, 2:04 PM
    We have just been through 5 years of dealing with 2 non payers - same as you they had to pay up when they sold. Now - fingers crossed - we have a building of 6 people who are willing and able to pay, hence we are moving to self management - and hence the need to find a suitable bank account to hold collective funds.
    • Summer17
    • By Summer17 6th Jul 18, 1:37 PM
    • 232 Posts
    • 52 Thanks
    Summer17
    • #9
    • 6th Jul 18, 1:37 PM
    • #9
    • 6th Jul 18, 1:37 PM
    We have just been through 5 years of dealing with 2 non payers - same as you they had to pay up when they sold. Now - fingers crossed - we have a building of 6 people who are willing and able to pay, hence we are moving to self management - and hence the need to find a suitable bank account to hold collective funds.
    Originally posted by John Chip
    It's such a pain when you get people like these. Especially when none of them help with the maintence of the property. I expect they just rent it out and not care. If it wasnt for me the place be a mess. Hench why me and the wife are management directors
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,069Posts Today

4,983Users online

Martin's Twitter