RTM Company No contact

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    RTM Company No contact

    Does anyone know what action can be taken if the RTM company is not performing and refusing communication.

    Long story short, of the 6 apartments Tenant A owns 2 properties and refusing to pay (for no other reason than he doesnt want to). Tenants B & C will not pay because Tenant A is refusing to (they are also saying they will sell), Tenant D Is the RTM director and doesnt really see the responsibility he has. Tenant E, myself, is willing to do whatever it takes to get the property managed or insured.

    No service charge is being collected and the property isn't insured. There was a belief that we could just "take legal action against" tenant A as he is refusing to pay. I pointed out that he has never been sent an invoice so he doesnt actually owe anything and no one else is paying so what makes him any worse in the eyes of the law.
    I offered to be added as a director and said I would send out invoices (the current director does not have the time or the inclination to do so), this was initially agreed to by the RTM director but he has since gone quiet (for 2 months), I suspect this went again Tenant B and C's interest as they don't want to pay the service charge and don't want arrears on the property when they sell.

    Where do I stand, I have currently been shut out and have no contact with any of them, I think I am seen as a trouble maker as I am trying to get everybody to pay their service charges when the reality is they don't want to.

    #2
    You may need to take it in stages. I suggest that you start with the insurance and say that it is irresponsible to fail to insure the building. Everyone will have difficulty selling if they are unable to provide proof of insurance cover. If that does not work, you could contact the mortgage companies to apply pressure on the other leaseholders. You can obtain their details from HMLR. You can threaten legal action against the RTM but I would not pursue it because of the costs involved.

    Comment


      #3
      The lack of insurance is my main point of concern and I have bought it up many times but it seems amazing how little anyone else cares.
      For example the person that owned the property before me set up the RTM and got the property insured after years of no insurance, she then sold the property to me and they have all convinced themselves that because she set the RTM up in order to sell the property she was completely out of order. No one can actually see that regardless of why she set up the RTM she is the only one that has successfully got it insured.
      Thanks for the advice regarding the mortgage companies that could be my best route.

      Comment


        #4
        Hi, I don't have any sage advice to offer just some sympathy, I thought the directors in my building were bad but yours is on another level. I would agree that insurance is the main concern and probably a requirement for any mortgage, as the bricks and mortar must surely be the collateral.

        Comment


          #5
          They won't be a be able to sell except as a distressed property without the insurance, and a competent conveyancer would probably also warn people off based on the arrears. Questions about all of these normally get asked by the buyer's solicitors.

          Comment


            #6
            I would suggest you sit down one evening and type a letter out.
            Detail the lack of insurance, the lack of willingness to maintain the building. List the problems with doing so - value of flats greatly diminished - likely all parties (including yourself) in breach of mortgage terms - the RTM company in breach of the lease.

            Offer to take on the role of director and run things properly.

            Send it to all of your fellow leaseholders, send it to the company. Send it to all mortgage companies you can find. Send it to the freeholder (if they aren't the RTM).

            See what response is after a week or two.

            Is the RTM a company? Does it still exist at Companies House?

            Comment


              #7
              The mortgagees should be on the public record, at the Land Registry, for £3 a lease.

              Comment


                #8
                leaseholder64 Tenant B is aware he can only sell at auction due to lack of insurance and has pointed out his annoyance that he will lose up to £50,000. I politely informed him it would be in his interest to start paying the service charge to get the building insured (Tenant D will pay and I think Tenant C would follow suit, meaning 4 out of 6 flats would be contributing) he is still not prepared to do it, meaning he would rather lose £50,000 than £80 a month until he closes a sale, I have no idea how to counter that kind of logic....(there is a an issue of section 20 works being required for a leak over his roof, which I more than happy to pay my share of, but getting the property managed is the first step).
                In terms of the conveyancer advising about the arrears, the issue is there are no arrears as the RTM director has never sent out an invoice. Thanks, I downloaded the land registry docs, 4 out of the 6 properties are shown to have mortgages.

                thevaliant. I have sent that (in email form) to all the leaseholders and RTM, the response was as per my initial post ie I am not paying if he doesnt pay. After discussing with the RTM director I even sent him the completed AP01 doc (to make me a director also) for signature, saying he would still have control but I can do the paperwork of sending out invoices. That's where communication stopped.
                The Freeholder is absent (deceased and no one knows who has taken it over).
                But the mortgage companies will have to be my next port of call.

                Comment


                  #9
                  The last resort is that you apply to the FTT to appoint a manager.

                  You first have to write down what is wrong and set realistic timescales for fixing it.

                  Comment


                    #10
                    Forgive my ignorance but isn't this something that would require input from the RTM Director or other leasholders?

                    Comment


                      #11
                      Your potential losses are much more than
                      £50,000 each. If your fellow leaseholders are that irresponsible it is best not to volunteer to become a director otherwise you could become personally liable. The existing director appears to be unaware of his duties.
                      Applying for a manager to be appointed by the FTT is far from ideal, it is likely to be expensive and you would lose any say in the decision making. The manager would report to the FTT not to the leaseholders. The FTT would notify the RTM company at its registered office if an application is made. It would then be up to the RTM company to notify the other leaseholders if it wished. It is difficult to imagine any arguments which the RTM company could put forward to prevent a manager from being appointed.

                      Comment


                        #12
                        Ok so if I understand correctly I could singlehandedly apply to the FTT to appoint a manager? I wouldn't need approval from the RTM or any other leaseholders to do so? This is not something I particularly want to do as its a sure fire way to make me public enemy number one but perhaps the threat of it is enough to shake some action.

                        Comment


                          #13
                          Also in what way could the director become personally liable.

                          Comment


                            #14
                            To get a manager appointed by tribunal you have to follow the correct process (I.e. serve a preliminary notice first), and you need to be able to prove that the block isn't being managed properly, but you don't need anyone else to agree the course of action (except the tribunal).

                            Comment


                              #15
                              I agree that you will not make yourself popular but ensuring that the property is insured is more important.

                              A director could be held personally liable if he is neglecting his duties.

                              Comment

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