Collective enfranchisement - disagreement over loft conversion

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    Collective enfranchisement - disagreement over loft conversion

    Hi everyone

    I wonder whether anyone can help. I live in a Victorian house which is split into three flats. I own the top one and would like to do a loft conversion (the loft is not demised to me). I have agreed with one other leaseholder that we'll buy the freehold together, I'll pay extra in the process and then do the conversion. The issue is the other (remaining) leaseholder doesn't agree with the terms (they don't want me to convert at all, ever) but they do want to buy the freehold (sharing the cost equally). I don't want us to share the cost equally because I'll never be able to do the conversion if I need the militant leaseholder to agree.

    Can anyone think of a potential way forward?

    Sally




    #2
    Will your flat be paying for all the roof repairs in future? I'd have thought that would swing it for the militant guy, if he did not realise that.

    Comment


      #3
      I shall refer to the original poster as OP; the leaseholder in agreement with loft conversion as A; and the leaseholder objecting as B.

      There are separate transactions here: the purchase of the freehold via an RMC; and the OP, in capacity as leaseholder, applying to the RMC for consent to acquire and convert the loft.

      The RMC’s Articles should include arrangements in relation to managing consents and any payments. (Notwithstanding, the RMC cannot override the lease or statutory legislation in respect of leaseholders’ rights and obligations). The Articles will also cover voting rights and the quorum required. That being the case it is not necessary (or arguably fair) to exclude B from the enfranchisement process. It is also possible to appoint additional directors perhaps assisting a more objective rationale behind decision making. Notably, the OP will probably not be able to vote re loft as there will be a conflict of interest.

      OP could proceed to issue s13 notice with A excluding B. However, this assumes A’s agreement and will not assist neighbourly relationships or management of building going forward. There is also nothing to stop B changing their mind about consent post-enfranchisement.

      I suggest all participants should pay the same and acquire equal shares of the RMC. The OP should then apply for consent via the RMC. Assuming consent the payment agreed should be made to the RMC ultimately to benefit shareholders which will include the OP.

      This might all be academic as enfranchisement might not proceed and/or the price for the loft might be too high; or planning consent might not be obtained.

      I appreciate we do not have all of the information so I make a number of assumptions above. It is just food for thought not designed to be comprehensive and is only an opinion. In the situation, it is likely a solicitor will be involved and will provide advice to clarify matters in more definitive terms.


      Comment


        #4
        Originally posted by smitchell View Post
        (the loft is not demised to me)
        Are you sure?

        Please read this thread:https://forums.landlordzone.co.uk/fo...-in-the-lease=



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