No maintenance charge no agreement?

No maintenance charge no agreement?

11:22 AM, 7th June 2021, About 2 months ago 5

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I own a leasehold flat and the Freeholder ran the services and maintenance through a management company that he set up and there was an annual maintenance charge made.

The Freeholder has now dissolved the management company, and consequently, I do not pay anything.

However, because there is no management company in place I cannot sell the property and nor can the other Leaseholders.

What should I do to try and get this rectified if none of the other Leaseholders seem bothered by this, but I am?

Many thanks

Martin



Comments

by Neil Patterson

11:30 AM, 7th June 2021, About 2 months ago

Hi Martin,
I am sure the penny will drop with the other leaseholders when they realise the implication and or there is next a maintenance issue!

If the Freeholder refuse the set-up a management company, you will need to get together with the other Leaseholders and instigate a Right to Manage (RTM)

Best research is on the government Leasehold Advisory Service web site >> https://www.lease-advice.org/

by BernieWales

14:21 PM, 7th June 2021, About 2 months ago

Quote "The Freeholder has now dissolved the management company, and consequently, I do not pay anything."

Wrong!

Read your lease and I'm 99.9% sure you'll find that if the named Management Company ceases to exist - the management of the property reverts to the freeholder.

Right to Manage is one option (not particularly recommended by me). Right to Enfranchise is a better option - albeit with a cost, as you're buying an asset (the freehold).

I'm happy to review the lease, if you send it over.

by Judith Wordsworth

18:04 PM, 7th June 2021, About 2 months ago

Reply to the comment left by BernieWales at 07/06/2021 - 14:21
Enfranchisment could be very expensive depending on the length of years left to run on the leases. Martin doesn't say how many leasehold flats.

It's up to the Freeholder to manage otherwise and at the very least there will be apportionment of buildings insurance premium, communal lighting plus communal cleaning, Gardening etc.

If lease over 81 years maybe a cheaper option if Martin has a buyer is to pay for an indemnity policy, shouldn't be more than £50-£100 I would have thought, for service charges over and above the insurance apportionment

by BernieWales

9:07 AM, 8th June 2021, About 2 months ago

Reply to the comment left by Judith Wordsworth at 07/06/2021 - 18:04
Indemnity insurance may cover the risks here, but does not address and cure the problem.

by Nick Pope

8:32 AM, 12th June 2021, About 2 months ago

In these circumstances, my immediate concern would be whether the fabric of the building is insured. If not and the worst happens you get nothing. If the freeholder has not insured then you gave an insurable interest but all the occupiers should chip in.


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