Renovation Loan for a Right To Manage Company

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    Renovation Loan for a Right To Manage Company

    Hello,

    I am a director of a Right To manage company, and we need extensive renovations to our roof, and other parts of the building.

    Does anyone know of a way to gather the funds to pay for this, like a loan or grant?

    Is it possible for an RTM company to take on a loan?


    #2
    I would imagine not. You should get it from the leaseholders, it is there responsibility. You may get a loan at high rates if there is any value in the Freehold if you own that but if you are just a RTM company with no assets then getting a loan would be extremely difficult . Really you should have a sinking fund in place for this kind of issue

    Comment


      #3
      Good point hech123, I would add that even if a bank were prepared to lend as unlikely as it is , why on earth would the Directors be prepared to give their Personal Guarantees forsuch borrowings. I fear that the liability rests in seeking a surcharge for the respective leaseholders to fund the costs involved.

      Comment


        #4
        How much is the roof repairs costing ? What is the contribution required by each flat ?

        Some leaseholders may pay be able to pay by increasing their mortgage loan.

        Comment

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