Buying the freehold on my block of flats

[Keitai]

It might be more simple than that. As I understand it most of the neighbours don't have the money to invest, so no matter how much they want to go for it, they may not be able to find the money. With 10 out of 22 and 3 on the fence, there is a real risk of the bid collapsing and the LL rightly seeking costs. That would be a real shame for people who can't afford to waste the money.

Can we definitely get rid of maintenance company- Foxes and lower those costs if we get Freehold? If this is true, a real benefit

 

[motorbiking]

Can we definitely get rid of maintenance company- Foxes and lower those costs if we get Freehold? If this is true, a real benefit

You do not need to own the freeholders to get rid of them. You have something known as Right to Manage. (RTM)

If the management is currently landlord controlled then there is a process to follow, if its resident controlled, its simply a case of the directors tendering the contract.

Do you know which is the case in your block?

 

[Keitai]

You do not need to own the freeholders to get rid of them. You have something known as Right to Manage. (RTM)

If the management is currently landlord controlled then there is a process to follow, if its resident controlled, its simply a case of the directors tendering the contract.

Do you know which is the case in your block?

Not sure but we do have a headlease as well as normal leases if that means anything? Think it's currently written into contract we have to have a management company. Of course can change from current one. If we are freeholders , can we completely get rid of all of them? Cheaper maintenance. If someone else buys freehold can they put it up? This was a fear voiced at meeting

 

[motorbiking]

Having a resident controlled management company does not mean you have to have an outsourced company. Your directors can appoint who you like even different people for different things. But this stuff does take management and if you fail to create a resident controlled management company, your landlord can step in and appoint his mates who will fleece you.

This has nothing to do with owning the freehold.

Right to manage is statutory right.

 

[cdbe]

I'm sure I've read something about freeholders being allowed to stick two more floors on top of blocks of flats - I think I'd like a piece of that/or some control of it.

 

[Keitai]

Having a resident controlled management company does not mean you have to have an outsourced company. Your directors can appoint who you like even different people for different things. But this stuff does take management and if you fail to create a resident controlled management company, your landlord can step in and appoint his mates who will fleece you.

This has nothing to do with owning the freehold.

Right to manage is statutory right.

Right to Manage is statutory? That means the other director lied to me and it isn't written into the contract that we MUST have a management company?

I want to get myself and one or two others to go to the solicitor's before proceeding with the freehold, to run through everything. get our fees from the management company to pay for it too

 

[motorbiking]

Right to Manage is statutory? That means the other director lied to me and it isn't written into the contract that we MUST have a management company?

They are not mutually exclusive statements. Management Company is different from Managing Agent.

The lease can require residents to create a management company and appoint directors etc. - nothing wrong with that.

You then choose to appoint a managing agent to perform the work of the management company. it's up to the resident controlled management company to decide who, what and when the managing agent does things. If you think they aren't worth the money, then tender to contract. The management company oversee the managing agent.

So you have:
Landlord owns freehold and residents are responsible for maintenance.
Lease says residents must form management company else he will step in and appoint his mates with kickbacks
Residents form a management company "XBC towers Ltd" etc.
Residents appoint directors Bob from no3, Jim from no4 etc.
Directors appoint managing agent because they all have busy day jobs "Vixens property management".
Vixens operate on behalf of the residents company and send out invoices, arrange repairs, cleaning etc.
If vixens are doing a sh%t job, go out to market.

I want to get myself and one or two others to go to the solicitor's before proceeding with the freehold, to run through everything. get our fees from the management company to pay for it too

If you have 10 out of 22, and 3 fence sitters, I think you have a lot of risk and in your personal case not much benefit.

 

[motorbiking]

I'm sure I've read something about freeholders being allowed to stick two more floors on top of blocks of flats - I think I'd like a piece of that/or some control of it.

it isn't that easy and of course the residents have the option of collectively enfranchising as soon as the planning application goes in. A nice easy way for the Freeholder to lose the freehold, getting all the residents fired up to take it over.

 

[Keitai]

They are not mutually exclusive statements. Management Company is different from Managing Agent.

The lease can require residents to create a management company and appoint directors etc. - nothing wrong with that.

You then choose to appoint a managing agent to perform the work of the management company. it's up to the resident controlled management company to decide who, what and when the managing agent does things. If you think they aren't worth the money, then tender to contract. The management company oversee the managing agent.

So you have:
Landlord owns freehold and residents are responsible for maintenance.
Lease says residents must form management company else he will step in and appoint his mates with kickbacks
Residents form a management company "XBC towers Ltd" etc.
Residents appoint directors Bob from no3, Jim from no4 etc.
Directors appoint managing agent because they all have busy day jobs "Vixens property management".
Vixens operate on behalf of the residents company and send out invoices, arrange repairs, cleaning etc.
If vixens are doing a sh%t job, go out to market.



If you have 10 out of 22, and 3 fence sitters, I think you have a lot of risk and in your personal case not much benefit.

Think it's 13 say they're interested. We propose a deposit system. But yes I'm getting exhausted dragging people to do this. Interesting though

 

[blup]

RTM company seems the way to go, you can run past the residents a twin track choice of buying out the freehold or just managing the maintenance, Keitai Ltd would be the main provider.

 

[Keitai]

RTM company seems the way to go, you can run past the residents a twin track choice of buying out the freehold or just managing the maintenance, Keitai Ltd would be the main provider.

We could do both?