Leaseholder refusing to contribute towards ‘Major works’?

Hello, Firstly thanks for taking the time to read my article/questions.

I have recently acquired a property and freehold which comprises of 5, 1 bedroom flats. 3 of which are owned by myself two of which have separate individual owners.

For ease, and anonymity, I am going to call the individuals “A” and “Z”.

“A”, resides in their flat and has been paying ground rent, insurance, service charges etc on time, in full, upon invoicing. A real pleasure to deal with.

“Z” has invested in a leasehold property, which they rent out to a paying tenant. They (‘Z’) are frequently late paying service charges, rarely pay in full and often are being chased for their contribution to all associated costs.

“Z” has an un-mortgageable property as the lease left on the property is less than 65 years.

“Z” and I have had numerous conversations about renewing the lease, which I am happy to do, but he is not willing to pay all the costs associated and actually can’t believe that the costs involved are so high. (In excess of £10,000).

This year, following on from some bank valuations I had done throughout my property portfolio and looking at the leases granted to both “A” and “Z”, I could see that the external of the property is to be maintained and repainted every 7 years.

I spoke with both lessees verbally after meeting with them to issue them with the year’s invoices regarding the lease and we all agreed the property would benefit from paint and remedial works.

The works would require a scaffold around the entire property, new guttering/fascias where applicable, two coats of a high quality paint, some rendering in areas where it has fallen into disrepair and, of course, whilst the scaffold was erect, we would take the opportunity to survey the roof.

To try and progress the works, this was initially quoted at around £13,000 (a great price of yesteryear) and passed on to both lease holders, with their contribution being around £2,600 each.

‘A’ was delighted and sent a cheque to proceed.

‘Z’ involved a solicitor, baffled that he has to contribute, which then meant we had to formalize the process, serving section 20’s and delaying the works.

After formalising the process, wasting a load of time, having someone come to survey the property, we are now faced with quotes of £38,000 + VAT and £29,000 (no VAT).

The consultation period has now ended, of course I have decided to proceed with the £29,000 quote and in such a fast moving world we’re now want to progress this before were hit with even higher build costs.

I have received a cheque for £6,000 (approx) from ‘A’ for her 1/5.

I parted with my £18,000 for my 3/5.

Once again, now we have requested payment for £6,000 from “Z”, he disagrees, despite no communication throughout the consultation period.

Of course. I want to continue with the works, how does this end?

Can I recover the costs and interest?

Can I put a charge over his property?

Any help would be greatly appreciated.

Thanks in advance,

T.

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