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

                  • Reply to 87 Years left on Lease - Cant buy freehold until 2 years?
                    by L4NDLORD
                    If you have a solicitor ask him to download a copy of the lease from HM Land Registry, it will inform you of the rent payable etc. Costs about three quid, plus your solicitors time (ten minutes!)
                    29-01-2022, 00:57 AM
                  • 87 Years left on Lease - Cant buy freehold until 2 years?
                    by pt888
                    A property recently came back onto the market for the reason being that the previous buyer was unable to lend money from his bank due to the lease only having 87 years remaining, the estate agent therefore said that going forward only cash-buyers would be considered. Out of those cash buyers i was selected....
                    28-01-2022, 20:38 PM
                  • Reply to 87 Years left on Lease - Cant buy freehold until 2 years?
                    by L4NDLORD
                    The city will probably insist you served notice and that they obtain a valuation for which you will almost certainly have to pay. Even so with 87 years unexpired its still not going to cost very much, a few thousand pounds. The solution to your question is to ask the seller to serve the notice on the...
                    29-01-2022, 00:56 AM
                  • Reply to Lease extension triggers doubling ground rent change
                    by L4NDLORD
                    it is quite true that the professionals unnecessarily make a meal of this type of work. One of the planks of my submission to Professor Hophins was that the landlord's costs should be limited to 500 pounds. I also suggested that relativity be standardised nationally (accepting that there would be winners...
                    29-01-2022, 00:51 AM
                  • Lease extension triggers doubling ground rent change
                    by SouthernDave
                    Has anyone had dealing with doubling ground rents?
                    i have just asked for a quote for a lease extension and they are proposing new ground rent terms of a doubling ground rent every 25 years. My commercial guy has said some lenders don't like these which may reduce the value of the property of i...
                    25-01-2022, 22:53 PM
                  • Reply to Service charges according to floorspace vs lease stipulation
                    by sgclacy
                    So the new lessee who wishes to challenge the proportion would have seen BEFORE he purchased the flat what percentage he was to pay - the unfairness of the bargain was patently clear BEFORE he purchased and may we’ll have been reflected in the price paid for the flat. So notwithstanding all of that...
                    28-01-2022, 22:45 PM
                  • Reply to Water Leaks Again and Again and Again...
                    by bigalxyz
                    There's no single cause - there have been multiple leaks - each time a different cause. Blocked bath overflow, leaking washing machine hose, leaking toilet cistern inlet, failed balloon valve in toilet, shower screen not fitted properly...all kinds of things. Just general neglect. Owner's never there,...
                    28-01-2022, 22:32 PM
                  • Water Leaks Again and Again and Again...
                    by bigalxyz
                    Director of RMC - 11 flats in London
                    There seems to be a long standing problem with the plumbing in the bathroom of one of the flats. 4 water leaks in the last 18 months, causing damage to the flat below.

                    Is there anything the RMC can do to compel the leaseholder of the problem flat...
                    28-01-2022, 16:05 PM
                  • Reply to Water Leaks Again and Again and Again...
                    by bigalxyz
                    Thank you.

                    I plan to leaf through the lease at the weekend - there may well be clauses along the lines that you suggest (it does ring a bell). Also I do know that there's a clause along the lines of "leaseholders mustn't do anything to mess up the insurance of the building, and are...
                    28-01-2022, 22:30 PM
                  • Reply to Water Leaks Again and Again and Again...
                    by Macromia
                    What it says in the lease is mostly what you have to rely on. I would be looking for any clauses that the flat needs to be kept in a good state of repair, and in particular anything that mentions keeping the pipes that serve the flat in a good state of repair and replaced when necessary and anything...
                    28-01-2022, 20:53 PM
                  Working...
                  X