Can lease be changed just because the directors want to change it?

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    #16
    If you make sure that you pay everything required by the lease and correctly demanded in accordance with the lease and relevant legislation, I do not believe that there is any risk of losing your home.
    Any forfeiture clause in your lease can only be used if you are in breach of the lease (any even then courts will typically try to avoid forfeiture).

    What you do need to be aware of is that the company owning the freehold can potentially pass resolutions requiring you (as a shareholder) to contribute towards costs, including work on the property, that you wouldn't be required to contribute to under the terms of your lease. If they do this, it should be billed seperately from service charges. You don't risk forfeiture of your lease if you don't pay costs accrued this way, but they might be able to take action against you for non payment if you are required to pay as a shareholder.

    You need to make sure that you are fully aware of the company rules and regulations that apply.

    If you are uncertain of anything, whether leasehold or company law, as applies in your specific situation, I would suggest that you ask on this forum (giving specific details and quoting lease/company clauses - but without identifying names) and then check what you are told with lease ( https://www.lease-advice.org ) or a paid solicitor.

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      #17
      Originally posted by Macromia View Post
      What you do need to be aware of is that the company owning the freehold can potentially pass resolutions requiring you (as a shareholder) to contribute towards costs, including work on the property, that you wouldn't be required to contribute to under the terms of your lease. If they do this, it should be billed seperately from service charges. You don't risk forfeiture of your lease if you don't pay costs accrued this way, but they might be able to take action against you for non payment if you are required to pay as a shareholder.
      There is no suggestion that the Company is proposing a resolution and it would be for the members to pass it

      Comment


        #18
        If there are only 4 leaseholders, you are not going to outnumber 2 of them so that route can be dismissed. It is still worth contacting the other leaseholder who is not a director in order to try to persuade him/her to agree with you.

        Meetings can sometimes become heated. I would let the dust settle and then send the directors an email or a letter referring them to the lease and asking them to comply with it.

        It appears that you are in arrears otherwise legal action would not be threatened against you. If you are challenging some of the costs, I would explain your reasons again in an email or a letter. If you let us have more details, we may be able to assist further.

        There is no risk of losing your home unless a Tribunal decides that you are in breach of the terms of your lease and you fail to comply with the decision within a reasonable time.

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          #19
          See also https://www.legislation.gov.uk/ukpga/2006/46/section/25

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            #20
            If you think you are living in fear, then you should seriously move to another place.

            Comment


              #21
              Originally posted by Gordon999 View Post
              If you think you are living in fear, then you should seriously move to another place.
              Yes unfortunately I hate it here and want to move but that takes time and money I dont have....

              Thank you so much for your help Macromania and members, it is appreciated,
              Basically, I am trying my best to cooperate and get along however with a dominant director, I have been checking everything as suggested I find I have been charged for items I am not contractually obligated to pay for since 2016 including rogue management agent appointed, did nothing not FSA regulated or Property Ombudsman, took hidden insurance commission. Insurance did not meet my mortgage requirements.

              I now think of challenging all this at small claims and LVT, directors refuse to pay their own assign to let fees. The director is renting their flat out and my ceiling is damaged, he won't meet with me to discuss the damage and there is some sort of damp problem as my lower skirting is showing signs of some sort of water coming in, there is no DPC so I have suggested we need to appoint a surveyor to assess and my property is getting damaged and devalued. They have not met their repair obligations and blame me for the issue when it is a structural issue.

              A director wrote to me making false allegations about me to other people with the intention to put people off me which is working. I was wondering why people were acting distant towards me then realized what was going on. I feel like it's harassment and financial exploitation.
              Yes, I want to move as now don't feel safe in my property anymore with a male tenant keeping tabs on my daily activities and he has wrongly approached and shouted at my young daughter.
              [/QUOTE]

              Comment


                #22
                The LVT hasn't existed for quite a few years now.

                Comment


                  #23
                  Originally posted by eagle2 View Post

                  There is no suggestion that the Company is proposing a resolution and it would be for the members to pass it
                  I am aware that it has not been suggested anywhere in this thread that any relevant company resolutions are already in place or have been proposed. I mentioned the possibility for two reasons:
                  1. When replying to threads of this type we cannot know that all relevant facts have been mentioned. If the OP believes that they are only obligated to pay costs mentioned in the lease they might not even have considered the possibility of having to make payments as a result of being a shareholder of the company.
                  2. Even if no resolutions currently exist, they could be passed in the future (and could potentially be passed even if opposed by the OP.

                  Comment


                    #24
                    Originally posted by leaseholder64 View Post
                    This should protect the OP from having to pay anything to the company if the company articles need to be changed in order to allow for this.
                    It may not help if the company articles already allow for resolutions requiring payments to be made, and these articles were in place before the OP became a shareholder.

                    Comment


                      #25
                      Originally posted by Stacker View Post
                      I now think of challenging all this at small claims and LVT
                      You should definitely take advice on how to proceed if you are considering going to a tribunal (First Tier Tribunal now).

                      If you are already on bad terms with the other three shareholders, regardless of whether or not this is your fault, and you don't feel safe in your home because of this, then taking legal action that will cost all of you money is not going to help with the situation.

                      I would suggest that you make sure that you are clear in your own mind about what you are required to pay and how what you have been asked to pay is different, and then arrange to speak to someone at Lease.

                      Perhaps some sort of mediation might be possible, although this would require agreement from the other shareholders.

                      Good luck!

                      Comment


                        #26
                        Have you asked for a copy of the management agreement? Have you asked the managing agent to declare all commissions and benefits which he is receiving from managing the property? Have you asked for details of his complaints procedure? Have you complained to the managing agent?

                        The managing agent is likely to have done something even if it is only arrange the insurance and send you bills. So saying that he has done nothing is unlikely to help you if you go to a Tribunal or a court.

                        If there are repairs required which are the responsibility of the management company, I would ask the managing agent to deal with them. If you do not receive a satisfactory reply, I suggest that you inform him that you will appoint a surveyor to prepare a report and you will deduct the cost from any services charges which are payable by you.

                        I would list all the charges which you are unhappy with, put them in an email or letter to the managing agent and state that you will complain to the FTT if you do not receive a satisfactory response.

                        It is not unusual for directors to try to turn leaseholders against someone who is challenging their actions and their position. If the leaseholders/members agree with you, they can remove the current directors.

                        Comment


                          #27
                          Originally posted by Gordon999 View Post
                          If you think you are living in fear, then you should seriously move to another place.
                          Unfortunately this is now what I will be doing, driven out of my home, no peace

                          Comment


                            #28
                            Originally posted by Macromia View Post

                            This should protect the OP from having to pay anything to the company if the company articles need to be changed in order to allow for this.
                            It may not help if the company articles already allow for resolutions requiring payments to be made, and these articles were in place before the OP became a shareholder.
                            Thanks for raising the shareholder company law side of things Macromania, I am aware I have to wear three hats - leaseholder, shareholder and possibly director, I am not a director however I try to keep an eye what they are doing as directors so I can relates and ensure they are following or be aware if they are following company law. Th dominant director who lets the flat out is married to a high up legal company secretary and spouts CA2006 off like she has eaten it for breakfast!.... She is psychologically dominant. So I am up against her own personal legal advisor from husband there and she goes out of the way to state this.

                            Comment


                              #29
                              Originally posted by eagle2 View Post
                              Have you asked for a copy of the management agreement? Have you asked the managing agent to declare all commissions and benefits which he is receiving from managing the property? Have you asked for details of his complaints procedure? Have you complained to the managing agent?

                              The managing agent is likely to have done something even if it is only arrange the insurance and send you bills. So saying that he has done nothing is unlikely to help you if you go to a Tribunal or a court.

                              If there are repairs required which are the responsibility of the management company, I would ask the managing agent to deal with them. If you do not receive a satisfactory reply, I suggest that you inform him that you will appoint a surveyor to prepare a report and you will deduct the cost from any services charges which are payable by you.

                              I would list all the charges which you are unhappy with, put them in an email or letter to the managing agent and state that you will complain to the FTT if you do not receive a satisfactory response.

                              It is not unusual for directors to try to turn leaseholders against someone who is challenging their actions and their position. If the leaseholders/members agree with you, they can remove the current directors.
                              Thanks for your reply , I have asked and done all the right things to see documents under L&T Acts, I am getting turned away almost every time and only shown limited stuff and told I cant see things as only a shareholder. Basically diddly squat.

                              It is when I do get to see things such as the insurance documents and who the insurance has been placed with meaning company name, this is the time and opportunity I get to contact them and they have been pretty good disclosing stuff about commissions to me but the directors of my own company wont.

                              The management agent is the same, he shares information and they wont. The managing agent even agrees with me that we don't need a managing agent for such a small building. The directors made the decision to suit themselves. I mean the tax deductables and the insurance has gone up because they are all rented out bar mine. None of my business if they are rented out except the kitchen above mine clearly does not have suitable sound and impact insulation on its floor because cracks have appeared everywhere on my ceiling through weight of ceramic tiles. I have raised this and owner refuses to meet to discuss.

                              There is also no carpet on this wooden stairs and there is supposed to be as per the lease, I have been physically attacked and pushed at a shareholder meeting and picked on for writing copious letters to the managing agent. Apparently they dont like me communicating with the managing agent and from their perspective they say its not necessary however I point out I am entitled to write to obtain the facts and would not have to do so if they let me see the right information.

                              As someone mentioned on here earlier, I am now organizing for a surveyor to come, I have asked the other shareholders for their input and they seem to agree to pay the surveyors costs however attacked again for problems raised yet they are not meeting their repairing obligations and my flat is suffering.

                              Comment


                                #30
                                Originally posted by eagle2 View Post
                                Have you asked for a copy of the management agreement? Have you asked the managing agent to declare all commissions and benefits which he is receiving from managing the property? Have you asked for details of his complaints procedure? Have you complained to the managing agent?

                                The managing agent is likely to have done something even if it is only arrange the insurance and send you bills. So saying that he has done nothing is unlikely to help you if you go to a Tribunal or a court.

                                If there are repairs required which are the responsibility of the management company, I would ask the managing agent to deal with them. If you do not receive a satisfactory reply, I suggest that you inform him that you will appoint a surveyor to prepare a report and you will deduct the cost from any services charges which are payable by you.

                                I would list all the charges which you are unhappy with, put them in an email or letter to the managing agent and state that you will complain to the FTT if you do not receive a satisfactory response.

                                It is not unusual for directors to try to turn leaseholders against someone who is challenging their actions and their position. If the leaseholders/members agree with you, they can remove the current directors.
                                The management agent is not FSA approved to advise on and sell insurance products, the FSA dont have this agent as a member and the only other way agents can sell insurance is being a RICS member. They are not this either. They did not even belong to a property address scheme so no they cant place insurance or earn commission when they dont have the authority to do so. Its against the law. I have raise this with the directors and they think its ok? I don't and neither do the FSA agree. I would say they cant earn the agent fee either.

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