freeholder owns 2 of 6 flats- can he claim "Person of Significant Control" if we RTM?

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

    freeholder owns 2 of 6 flats- can he claim "Person of Significant Control" if we RTM?

    He's a pain/expensive - and we're looking to go down the Right To Manage route if we can..

    ...however - we're not sure if (as he owns 2/6 of the flats) whether he can then push us around as a "Person of Significant Control" or not.

    any opinion greatly appreciated.
    thanks,
    O.

    #2
    PSC is not something you claim but rather something you must declare. The concept exists to warn people that one person may have a lot of influence over the operation of a company. It doens't give that person any rights they didn't already have.

    Comment


      #3
      The person appears to have 2/7th of the voting rights, so the company must declare them to be a PSC. Whether they can push you around depends on whether other people attend, or appoint proxies for, general meetings. For a typical, maturing, RTM, I would say that if the wanted to, they could probably control the company, particularly if the other leaseholders are absentee landlords, because of apathy by other members. For a newly formed RTM, there may be more enthusiasm.

      Comment


        #4
        Sorry, missed that they were the freeholder as well. That' 3/7, assuming all the flats are on long leases. I haven't read the rules closely enough to be sure of the position for the two flats being on short leases.

        Comment


          #5
          The purpose of this requirement is to make the ownership and control of companies more transparent and to prevent money laundering and tax evasion. It will make no difference to you - it's just something that has to be declared.

          Here is the guide to see if you qualify - he of course could opt to be part of the RTM company in which case nothing changes unless you have a majority

          Comment


            #6
            https://www.lease-advice.org/advice-guide/right-manage/

            Comment


              #7
              Landlord has 2/6 votes.

              https://www.lease-advice.org/advice-guide/right-manage/

              Comment


                #8
                More specifically https://www.lease-advice.org/advice-...t-manage/#s-14

                I missed that the landlord only gets a vote as landlord if they don't have one for a flat.

                Comment


                  #9
                  You would need 4 flats out of 6 to support RTM process and proceed to claim RTM of the building ( without support by LL's 2 flats) .

                  You would ensure that the 4 flats appoint the first Directors of the RTM ( and keep the LL from becoming a director and bringing all the pain into the director's meeting ) .

                  Comment

                  Latest Activity

                  Collapse

                  • Share of feehold/shared service charges?
                    by Stu1020
                    Hi there,

                    I'm new to the forum and looking for advice on a sticky freehold situation.

                    I own a two-bed flat in a converted building with two one-beds. The lease states that a fair proportion is payable towards the service charge. However, there has been a running agreement of...
                    20-05-2022, 11:39 AM
                  • Reply to Share of feehold/shared service charges?
                    by Gordon999
                    Since your flat has 2 bedrooms and other flats have one bedroom, you should keep the existing 38:31:31 split as fair contribution to the annual service charge account.

                    For lease extension, the cost is mainly solicitors charges plus registration charge at Land Registry and Mortgage Lender.(...
                    28-05-2022, 10:48 AM
                  • Reply to Building works & S20 process
                    by Gordon999
                    The S20 consultation with leaseholders is required for any planned works which exceed £250 cost per flat.

                    If any planned works are quoted below £1000, you could place the order on the supplier with lowest quote. .

                    If the freeholder is self- managing the building maintenance,...
                    28-05-2022, 09:56 AM
                  • Building works & S20 process
                    by RichA
                    Hi. I have a freehold after selling a leasehold flat in a block of 4 flats. We don't currently have a managing agent, so these duties currently fall to me (I am holding off appointing a managing agent whilst the leaseholders consider whether they want to RTM).

                    The block needs some maintenance...
                    21-05-2022, 17:20 PM
                  • Reply to Share of feehold/shared service charges?
                    by sgclacy
                    You appear to have bought into the flat knowing at the time your share is 38% and having owned the flat feel that this is unjust.

                    Did you raise any concerns questions at the time of purchase that in a three flat split you would be paying more than 33.33% . Could it be argued that the unfairness...
                    28-05-2022, 09:04 AM
                  • Reply to Share of feehold/shared service charges?
                    by eagle2
                    The cost of extending a lease is not a service charge expense so there is no reason to allocate it on the 38/31/31 basis, your offer to split those costs equally seems to be reasonable. It is up to the freeholder to decide what is fair and reasonable for the service charges and it is up to the other...
                    28-05-2022, 05:29 AM
                  • Reply to Old managing agents accounts
                    by eagle2
                    Unless the handover took place at the end of the financial year, it is the RTM's responsibility to produce the annual accounts. You could try making a formal complaint against the agent to supply copies of all supporting documents, it should belong to a redress scheme. The difficulty is that the agent...
                    28-05-2022, 05:05 AM
                  • Old managing agents accounts
                    by jazzythumper
                    Since obtaining the RTM and changing the managing agent, we have never been given full accounts / receipts for the previous year(s). We believe that as the old freeholder and leaser holder of one of the flats were represented by the same solicitor that prior to the sale of the freehold, we were subsidising...
                    20-05-2022, 11:21 AM
                  • Reply to Freehold confusion
                    by CStevens
                    davetg,

                    The property should be registered so the land registry should hold a copy of the leases. You would need to look at the leases to see who is responsible for what but normally in a maisonette situation the freeholder would insure and maintain the structure, foundation and roof with...
                    27-05-2022, 21:58 PM
                  • Freehold confusion
                    by davetg
                    30 years ago I bought a flat from a friend. The freehold at the time was registered to my friend and the lady who owned the other flat. I understood at the time that I would replace the friend on the freehold but this never happened. This was not a problem until now as when work on the structure of...
                    24-05-2022, 14:29 PM
                  Working...
                  X