Breach of covenant in share of freehold

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

    Breach of covenant in share of freehold

    Hello everyone,

    I own a leasehld flat and share of freehold, split equally between 4 directors of management company.

    I believe one of directors may have breached there lease but Im not sure the others will see it that way.

    The articles state matters must be decided by a majority vote, so what is the correct course of action here?

    What if I raise it as an issue but a majority don't agree it has been breached?

    #2
    There is s third alternative: they could agree that there is breach but decide to waive it.

    Does the lessor covenant with other lessees to enforce the particular breach?

    Comment


      #3
      Hello leaseholder64,

      sorry I dont quite follow your last question, "Does the lessor covenant with other lessees to enforce the particular breach?"

      Would enother option be for a me to pursue legal matter myself if a majority cannot decide?

      Comment


        #4
        What I was getting at is that the freeholder does not have to enforce covenants and there is no come back for not doing so unless they are themselves breaching a covenant. If they don't covenant with you, as leaseholder, to enforce the covenant, they are doing nothing wrong by not enforcing it. Note that such covenants often come with a condition that they will only enforce if you guarantee to pay all legal costs they are unable to recover from the person in breach.

        Whether you can take action against the other leaseholder depends on whether the other leaseholder covenants just wit the lessor or with both the lessor and the other lessees. What the freeholder can do, which you can't, is to threaten to forfeit the lease, but for that they will need a ruling from the FTT that there is a breach. Actual forfeiture is extremely rare.

        You may have a legal case against another leaseholder as a neighbour, rather than under the lease contract.

        Comment


          #5
          You are asking two questions, 1 is there a breach and 2 what if anything should be done about it.

          1 We cannot answer this question unless you state what you consider to be the breach of the lease and you let us know the actual wording of the lease. A breach is not determined by the freeholder or by majority vote, if the leaseholder does not accept the breach, it is a legal matter and it could be determined by a court or a tribunal.

          2 It is up to the freeholder to decide whether or not to take any action regarding a possible breach of the lease and that would be determined by majority vote by the 4 directors of the freeholder.

          If their decision is to take no action, your lease may allow you to ask the freeholder to enforce the terms of the lease with another leaseholder but as LH64 says, there may be conditions which would be stated in your lease.


          Comment


            #6
            Firstly what is the breach and what does your Lease say about this, can you post the wording on here to help us understand?

            The Lease is a legal contract which requires all parties to comply with, no company law or directors wishes take priority over the Lease unless it is a majority decision meaning you all agree to the changes in the Lease or the Lease is not working in some way however that would need to be determined by the FTT...Directors need to be seen and comply with the Lease, Landlord and Tenant laws.

            Comment

            Latest Activity

            Collapse

            • Secret commissions
              Stacker
              The issue of freeholders and managing agents fiddling insurance commissions at leaseholders’ expense was raised in the Times earlier this month.

              Sir Peter, 74, said that secret commissions were part of a broader pattern of mistreatment of leaseholders. “Those receiving cowboy commissions...
              18-07-2019, 20:27 PM
            • Reply to Secret commissions
              fos333
              Hi Stacker,

              I had concluded this thread was dealing only with insurance commissions hence no further reply, however I feel I have to reply to the above.

              RICS are a sham and my initial investigation took 22 months from raising the issue to receiving a letter in review of the...
              20-07-2019, 22:33 PM
            • Reply to Secret commissions
              Gordon999
              Michelle,

              I think you may be mistaken in quoting FTT.

              LKP has wanted to get onto the Board of Leasehold Advisory Service ( LEASE ) to represent the leaseholders side..

              Eagle 2 is confusing the situation by objecting to you ( Michelle) representing LKP...
              20-07-2019, 21:35 PM
            • Disputes with present freeholder
              hexu
              Hi there,

              It's really a nightmare if the freeholder is bad enough!

              When I purchased the property in 2006, the freehold was held by the Council. In August 2007, the Council sold the freehold of the building to a housing association. Major works of the building were planned...
              15-07-2019, 21:08 PM
            • Reply to Disputes with present freeholder
              leaseholder64
              The Leasehold Advisory Service can probably give you free advice on the insurance and apportionment issues, but may struggle on those relating to the conveyancing between council and and housing association and housing association and current freeholder. They won't be able to do anything without the...
              20-07-2019, 20:53 PM
            • Reply to Disputes with present freeholder
              hexu
              Thank you all, it's helpful.

              Building insurance, proportion and the stock transfer cap are my main disputes with the present landlord sadly.

              - Building insurance. It is simply being incorrectly billed. The demand does not meet the requirements under the lease. But the present...
              20-07-2019, 20:02 PM
            • Reply to Secret commissions
              Gordon999
              During the previous Labour Government, disputes between L & T were brought to the LVT ( Leasehold Valuation Tribunal ) and many of the LVT Tribunal panel were recruited from RICS members and lawyers,
              When Conservative were elected to power in 2010 , the LVT seemed to be replaced by...
              20-07-2019, 20:01 PM
            • Reply to Secret commissions
              Stacker
              The illusion that the are " professional", work to mandatory codes,its the same with the property ombudsman in fact all Ombudsmans are a joke! Even the FSO..they have often been accused of failing the consumer...time for a change...
              20-07-2019, 18:18 PM
            • Reply to Secret commissions
              Macromia
              This is the problem with a lot of regulations etc. that are supposedly in place to protect leaseholders.
              'Best practice' isn't decided by organisations that are there to protect the interests of leaseholders, it is decided by organisations like RICS, ARMA and ICAEW - organisations whose primary...
              20-07-2019, 17:53 PM
            • Reply to Secret commissions
              Stacker
              So do you get to see the policy, invoice and are you able to ask for sight of/ disclosure of the commissions?...
              20-07-2019, 17:41 PM
            Working...
            X