disputes over correct allocation of funds

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    disputes over correct allocation of funds

    Hello,

    We live in a shared freehold. 5 flats, 2 resident trustees of which I am one.

    Currently there is only £3,500 in the account and we are planning that and future summer income to do essential maintenance works on the roof and slowly build a sink fund (it has taken years to slowly gain increased contributions from owners to enable this - 10 years ago we were only paying £40 pcm, now we pay £100 pcm which has allowed for better maintenance of the property which is a large Victorian house.)

    Unfortunately, we have one non-resident flat owner who has been trying to sell his Flat for a while and thinks it would sell if we upgraded the hallway. The carpet is not worn, the hall is clean and in good condition. We polled owners and everyone but they would prefer to wait given the lack of sink fund, and the more important (non-cosmetic) spending needs.

    This owner is becoming very bullying and aggressive in the face of opposition, says he doesn’t want to pay for a sink fund, has accused us of mismanagement as states he will take legal action against the trustees. Some others have washed their hands of the situation after his multiple ranting emails.

    As trustees we have final say and a responsibility to ensure the property is managed appropriately and for the benefit of all. I believe that we are right to put roof repairs and other structural and building needs ahead of of cosmetic needs given the size of the existing fund, and that the suggestion IS purely cosmetic - the carpet does not need replacing, he just doesn’t like it. I believe it is also standard and prudent to put a sink fund in place.

    I am tempted to simply reply saying that he should seek legal advice. I can’t imagine a judge saying we have not exercised our duty appropriately and well here, but concerned that legal action will involve costs (legal costs are covered by the house insurance but will increase the premium next year and so cost everyone in the long run I suspect)

    I seem unable to resolve the situation calmly - With every email trying to explain why we have said ‘not now, but we will revisit in Autumn when we know the state of the account’ he comes back with multiple personal arguments and threatens legal action.

    It’s very stressful for everyone, but particularly for us two trustees - some of his emails verge on libel.

    #2
    Most leases don't allow for upgrading at all. If you literally mean upgrade, the seller will need to be prepared to pay the whole cost, and even then you might not want to do so if it increases future costs.

    If you are really talking about repairs and renewals, you would need to check the lease as to when they need to be done.

    If work is essential, or required by the lease, the state of the sinking fund shouldn't matter. If it is too low, people will have to pay a lump sum.

    Comment


      #3
      Thank you, that’s what we thought. There is no right to upgrade in the lease and it his objection to the hallway is purely cosmetics, not necessary repairs.

      Comment


        #4
        Is this in the right section. I think that HMOs have to have communal areas in good decorative order, but this sounds like a long lease issue, not an HMO one.

        Returning the decorative state to the original state is a repair, not an improvement, so it would e question as to exactly what the lease says about that. If it is bad enough to make the property difficult to sell, the work needs doing. Except in true luxury situations buyers tend not to be interested in the decorative state of communal areas, at least not BtL ones, who will be the only buyers for older flats, and the a significant proportion of those for new build.

        Comment

        Latest Activity

        Collapse

        • What are the fire checks: 4 bed HMO
          bengal
          Setting up a 4 bed HMO

          We've installed interconnected smoke detectors in all rooms, have smoke alarms on each level in hall ways, co2 alarms in relevant rooms and heat detector in correct room - can't recall if kitchen or hall as writing this on behalf of partner who did it as recommended...
          12-07-2018, 11:39 AM
        • Reply to What are the fire checks: 4 bed HMO
          leaseholder64
          If you are leaving the country you must have appointed a manager for the HMO, and put up notices giving details of how to contact them.. They are the ones responsible for ensuring that testing is being done.
          18-08-2018, 10:35 AM
        • Reply to What are the fire checks: 4 bed HMO
          jpkeates
          Part of the mandatory requirements for the manager of an HMO is to have carried out a Fire Risk Assessment (or to have one carried out).
          That will define both the safety standards for equipment (like alarms and doors), confirm that fire exit routes are acceptable and should also confirm the nature...
          18-08-2018, 08:36 AM
        • Single AST agreement or not??
          Gillmstar
          hi, would really appreciate some info from an experienced HMO landlord on this one.. I’m acquiring my first multi let property, do you think a single AST agreement will be fine for 4 tenants who may not know each other? Or is this something to stay away from and have a unique agreement for each room?...
          20-02-2018, 16:11 PM
        • Reply to Single AST agreement or not??
          jpkeates
          That's going to be difficult to manage.
          Are they named as the tenant or as tenants (plural)?
          What have you told the local authority about council tax?...
          18-08-2018, 08:32 AM
        • HMO avoidance
          cupcake78292
          According to the HMO rules & the new rules that come out in oct 2018, there seem to be some obvious ways to have 5 or more tenants but avoid being an HMO:

          pre oct 2018
          1. Five or more tenants, on only 1 or 2 levels

          post oct 2018 (under new rules, 2 levels now count...
          10-08-2018, 13:46 PM
        • Reply to HMO avoidance
          DPT57
          I think youre misinformed cupcake.
          1) I believe Oct 2018 regulations just remove the 3 storey restriction so even a Bungalow with 5 tenants becomes a licensable HMO
          2) This is likely to be 5 self contained bedsits each with their own Council Tax liability and the building itself may still...
          17-08-2018, 21:02 PM
        • HMO question
          rentreviewspecialist
          Are there any landlords here whose HMOs are in leased property? In other words, the property itself is held on a lease from another landlord (superior landlord) and underlet as an HMO.

          What I'd like to find out is how the rent review between landlord A and superior landlord B is calculated?...
          08-08-2018, 16:16 PM
        • Reply to HMO question
          DPT57
          The ground rent payable on a leasehold property should be set out in the lease. Ive never heard of one where it was linked to the use of the property or the amount of rent received. What exactly does the clause in your lease say?
          17-08-2018, 20:38 PM
        • Reply to What are the fire checks: 4 bed HMO
          leaseholder64
          Weekly is the advice for owner occupiers and offices, so I don't see how you could argue for anything longer.

          Weekly testing is something that building manager can do for themselves, or could even be delegated to a tenant, although in that case definitely get a log book to prove it is being...
          15-08-2018, 11:12 AM
        Working...
        X