Charging leaseholder for repairs?

Charging leaseholder for repairs?

0:02 AM, 17th April 2023, About A year ago 4

Text Size

Hello, I own a maisonette flat – there are two flats and I am the freeholder. The leaseholder moved into the downstairs flat two years ago and seems a nice guy.

I will be having a discussion with the leaseholder soon as the roof and fascia of the property needs to be replaced since the roof is leaking and the wood is damaged on the fascia too. According to the lease, we should share the cost of repair equally.

However, the roof doesn’t really affect him and I also own another flat where I am the leaseholder and in that lease I am responsible for the roof.

The repairs will costs around 10K in total and I would appreciate any advice or tips to handle this delicate situation as the costs are quite steep and would think he may resist paying his share. Though I am willing to maybe contribute more than half of the costs.

Thank you,

Jim


Share This Article


Comments

Judith Wordsworth

12:15 PM, 17th April 2023, About A year ago

You need to serve a s20 Notice to both leaseholders (ie yourself too) or a s20 Opt-Out document for signing and dating.

The leases will stipulate how the Freeholder can charge for maintenance/service charge/repairs and that should be followed.

If the lease states the roof is included then it is as likewise would be repairs to a damp proof course that only affects the ground floor maisonette. Do not set a precedent of paying more than each leaseholder is obligated to pay. The ground floor leaseholder cannot refuse to pay their 50% share. But what you as freeholder could do is offer an interest free loan to be repaid quarterly/annually or at a reasonable % interest.

You say the leaseholder moved in 2 years ago, presume you mean they purchased the ground floor maisonette. If so and you knew that the roof might require work within the period noted on the TA7/LPE1 forms that should have been stated as should all major works. Was anything noted re the roof on the buyers survey?

Have you also had the correct number of quotes carried out? Usually 3. Does the roof require replacement or could be repaired? Wooden facia boards can easily be replaced by UPVC which don't need repainting.

Mark Smith

12:18 PM, 17th April 2023, About A year ago

I think you need to go by the agreement .
First of all the state of roof affects all properties - it will effect you first but in time will affect the ground floor.

A blocked drain on the other hand wil at first only affect the ground floor but you should be ready to contribute to any such expenditure.

And of course you should expect to pay up in the case of other ground floor problems like subsidence of flooding and should be careful to make sure you have funds and/or insurance to cover such eventualities.

I would however have a conversation as early as possible about these repairs and indeed any other issues your lessee may be aware of - and work out a timetable of works and how you spread the cost.

You might wish rather than paying for the works yourself to grant him a loan to cover some of the costs of the roof work to be recovered at an affordable rate. (or when you need to attend to foundations , flooding or drains when he might be demanding you pay half! )

JB

12:46 PM, 17th April 2023, About A year ago

As far as I know, older leases gave responsibility for the roof to the upstairs flat and the foundations to the downstairs flat. More modern ones split it evenly so it doesnt all fall on one leaseholder - after all neither flat can do without a roof or foundations.
As long as you follow what the lease says, I dont see a problem - unless the other leaseholders cant pay it.

moneymanager

13:23 PM, 17th April 2023, About A year ago

"Though I am willing to maybe contribute more than half of the costs."

It shouldn't be a matter of "maybe", it should be a matter of what the lease says.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now