Change of Business of unit property management Company

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    Change of Business of unit property management Company

    I am hoping you can help. Apologies if the posting is not in the correct topic.
    I am a Director in a property management company whicch comprises of a building with six units ( 4 flats above and 2 commercial units at ground level) Each unit is owned by a different person who by right of ownership is a director of the property management company. Therefore six directors and 6 units in total.
    The company was formed so that the leases could be held under the management company as the previous landlord had gone bankrupt, so effectively the management company took over the role of the landlord in looking after the building ie insurance maintenance etc.
    One of the units ( owned by one of the directors) which was an upholstery shop has changed business use to a cafe/fried chicken oulet. This has caused uproar upstairs as the owners ( directors) of the flats believe the saleability of their flats has diminished because of it and claim permission was needed from the management company. The owner/ director of the commercial unit claims no permission is needed as the mamagement company wasc set up to maintain the building and has nothing to do with the private business operating as a sole trader in the unit. All planning permissions from the council were gained and approved.
    Who is right?

    #2
    Each unit is owned by a different person
    On what basis is each unit owned?

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      #3
      each unit is owned via a 125 year lease which are then vested in the management company which holds the freehold

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        #4
        My take is the Director/ leaseholder of the management company is acting in a private capity as a sole trader and can effect a change of business use without needing the property management company approval. Also because the remit of a property management company is to look after the maintenance of the building and not to interfere in somebidys business Am i right?

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          #5
          What do you think Lawcruncher or anyone?

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            #6
            I am hoping you can help. Apologies if the posting is not in the correct topic.
            I am a Director in a property management company whicch comprises of a building with six units ( 4 flats above and 2 commercial units at ground level) Each unit is owned by a different person who by right of ownership is a director of the property management company. Therefore six directors and 6 units in total.
            The company was formed so that the leases could be held under the management company as the previous landlord had gone bankrupt, so effectively the management company took over the role of the landlord in looking after the building ie insurance maintenance etc.
            One of the units ( owned by one of the directors) which was an upholstery shop has changed business use to a cafe/fried chicken oulet. This has caused uproar upstairs as the owners ( directors) of the flats believe the saleability of their flats has diminished because of it and claim permission was needed from the management company. The owner/ director of the commercial unit claims no permission is needed as the mamagement company wasc set up to maintain the building and has nothing to do with the private business operating as a sole trader in the unit. All planning permissions from the council were gained and approved.
            Who is right?

            Comment


              #7
              Originally posted by James231 View Post
              each unit is owned via a 125 year lease which are then vested in the management company which holds the freehold
              I somehow missed the above.

              I am not quite sure I follow you. Does each director have his own lease?

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                #8
                You need to read the leases for the shops to see what use and what permission is needed.

                Also the council should probably have advised the upstairs flats of the pp for change of use and invited comments.

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                  #9
                  Thank you. Does the leases specifically have to say it is or is not allowed. What if does not state either way?

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                    #10
                    Yes each Director has its own lease

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                      #11
                      All leases are different - what does yours say on this topic.

                      Did owner of upholstery shop apply and get change of use to hot food outlet? Planning notices should have gone up (yellow A4) and you all would have had the opportunity to object.



                      Freedom at the point of zero............

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                        #12
                        Thank you . So if I understand it properly the fundemental point is what the lease says. Also whether any objections were made when planning application was made. Therefore in essence the management company cannot disallow a change if the lease permits it and planning is approved. Is that more or less correct? Just one point what if a lease does not mention anything about change of use ie: neither allowing for or against it.

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