Freehold in Company – Outvoted on decisionsMake Text Bigger
I have a BTL property with a share of freehold. This BTL property has two other properties below it which consist of one whole building. The freehold for the whole building is held within a company (to which I am a shareholder and director) and the two other landlords of the properties below (freeholders) are also shareholders and directors. In total there are three shareholders of which we are all directors.
Due to the nature of the share of freehold, I am of the understanding we have to buy building insurance in the name of the company. I had a leak in my property which was leaking through to the property below. The building insurance covered the damage. I repaired the leak. However, upon asking the other shareholders, they both voted against me using the building insurance to cover the repair costs for the leak and the remedial work to bring the property downstairs to its original state claiming it could not be used for this purpose. The landlord of the property downstairs still wants me to cover the damage to repair his ceiling downstairs although will not allow me to use the insurance.
As the building insurance covers this type of damage, I think it can be used for this purpose; however as I have been outvoted 2 to 1, I feel I cannot do anything. This also leads to a wider problem as to what if something more serious occurs and they don’t allow me to use the insurance policy. Buying building insurance which I cannot use becomes pointless.
I would like to find out what my rights are and what I can do to enforce using the building insurance if I feel it is a legitimate reason to use but am outvoted again.
Any advice or next steps would be most appreciated.
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