Freeholders being taken for a ride?

Freeholders being taken for a ride?

10:32 AM, 9th May 2016, About 9 years ago 47

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I own a buy to let flat. I am one of 18 freeholders. The new Manager, who was not elected, took over and increased our management fee by 70% because he wants £9000 per year for his pocket, plus the £12000 per year for maintenance costs we were paying previously (the complex of 18 flats in three blocks was only built in 2003, so doesn’t require high maintenance).taken

This manager, who owns one flat, will not provide contact details of the other freeholders – except his family members, who are trying to undervalue and snap up the entire complex cheaply. He says it is confidential information.

Please can anyone tell me if he is right, or should I have a right to contact other freehold owners of the same building direct, of which building we are all registered shareholders? After all, this is public information at the land registry, but I believe I should not have to go there.

It is my belief that this manager works for us and should comply with reasonable requests and facilitate direct communication between the owners. Am I wrong?

Ingrid


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Ingrid Bacsa

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14:21 PM, 10th May 2016, About 9 years ago

Reply to the comment left by "Graham Bowcock" at "10/05/2016 - 08:33":

Dear Graham

Thanks again for the encouragement.

I am thinking to request an AGM from the Manager, although I do not trust him to pass this on to anyone who is not his family member.

Since he can make me pay for "collection " of his invoice, it would be fair if I can make a deduction of my "dues" for unnecessary research to contact my fellow members, when he should simply pass me the list. I take your point,however, without support from the others it will be much more of a struggle for me . The whole thing will be delayed, including my payment which is due, by having to spend my own time finding the contacts - who may,or may not be interested. If they do not wish to challenge the Management or the fee, I may be wasting my time.

Your information is very helpful, and I will keep this in mind when drafting my letter to the manager.

keep you posted

Puzzler

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14:59 PM, 10th May 2016, About 9 years ago

He has to notify all the leaseholders/shareholders. I am doing a course (free) at the IRPM, suggest you download it yourself. Also there is a book by Cumming and Hickie (2005) which you can buy from RICS which is very helpful.

You may need to do quite a bit of homework on the paperwork you have or find a block manager in your area who can help you. If you are near me I would happily go through it with you.

Ingrid Bacsa

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15:23 PM, 10th May 2016, About 9 years ago

Reply to the comment left by "Puzzler " at "10/05/2016 - 14:15":

Yes, I had insurance document when I requested it a year ago, though I am sure I could get a cheaper quote. Had a demand for charges with four weeks notice this year, to pay the £1200 strictly and immediately on the said date. I sent £400 along with a notice I would pay direct debit, £160 per month to clear it. This was promptly rejected. Never had an AGM to my knowledge.

Leasehold rights and freehold rights - it is difficult to sync the problems into the right category. I am going for the freehold rights to start with - we should have a say in the financial matters of our company, especially concerning maintenance and how much we should pay. As freeholders we should benefit from having a say. As stated by Puzzler earlier, management should not pay themselves if we are self-managing. He is an owner and freeholder, therefore, doesnt he have a conflict of interest when awarding himself £9000 per year? I was wondering where it is written that he should not pay himself? Anyone know? All maintenance, insurance and accountant bills come out of the £12000.

Must get doggie out

regards

Ingrid Bacsa

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15:31 PM, 10th May 2016, About 9 years ago

Reply to the comment left by "Ingrid Bacsa" at "10/05/2016 - 15:23":

By the way, I am in lovely Bournemouth; the said flat is in Derby!

Distance should not bar my rights however! I underst other owners live far from the property.

Puzzler

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15:31 PM, 10th May 2016, About 9 years ago

£1200 is not bad if all the bills some out of it. The book I mentioned above refers to the fact that self-management is voluntary, although I have a flat where the directors awarded themselves an "honorarium" but this has now been discouraged. As freeholder you are a shareholder and have right to see how the company is run, as leaseholder you have the right to know where you money is being spent so the two are irrevocably linked.

You could just knock on all the doors and find out who lives there "to introduce yourself"

Ingrid Bacsa

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15:36 PM, 10th May 2016, About 9 years ago

Reply to the comment left by "Ingrid Bacsa" at "10/05/2016 - 15:31":

Puzzler, where are you?

I am very interested in learning, so I can turn the tide at Derby. I also manage a block in Southampton, although I only charge £150 per annum in total to cover admin and travel expenses - it is not pocket money.. We (8 flats) each pay £620 per annum in total.

Doggie getting annoyed now!

Puzzler

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15:53 PM, 10th May 2016, About 9 years ago

Ha ha take the dog out! I am all over the place but often in Berkshire so easy to meet. My email is rannd@hotmail.co.uk. send me some details to contact you when I am next there

S.E. Landlord

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16:30 PM, 10th May 2016, About 9 years ago

You should check your lease to see what this says about managing the flats, there may be a separate management company that has responsibility for managing the flats.
I would ask for a copy of the letter or agreement appointing them to manage the flats. Also are they operating as a company, what public liability insurance do they have?
Assuming all leaseholder's have received the same letter now is the time to be contacting them.

Ingrid Bacsa

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16:36 PM, 10th May 2016, About 9 years ago

Reply to the comment left by "S.E. Landlord" at "10/05/2016 - 16:30":

Great, thank you!!

I will be posting the outcome in the end - whenever that is!

Ingrid Bacsa

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16:38 PM, 10th May 2016, About 9 years ago

Reply to the comment left by "Puzzler " at "10/05/2016 - 15:53":

Hmmm.... with a name like Puzzler!

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