Cladding related charges to leaseholder

  • Filter
  • Time
  • Show
Clear All
new posts

    Cladding related charges to leaseholder


    I am a leaseholder. I recently received a demand letter from the blocks management company asking for apprx. £10,000 towards the investigation and procurement of the cladding problem in the building. Other leaseholders have also received similar demands. They have informed us that they have applied for the government grant and this demand will be used only if they do not receive the grant from the government.

    Key point I am trying to understand is whether the leaseholders are liable to pay these massive charges as these are related to the problem in the building structure that is owned by the freeholder.

    Your advice will be highly appreciated.


    The terms of your lease will probably say leaseholders are required to pay service charge for "maintenance of your block of flats". Leaseholders don't have any legal ownership of the building and you are the long term rental tenant in an unsafe building .

    If your building was built to unsafe standard by the builder, it should be the builder's business insurance which pays for replacing the defective material. If the freehold title of the building was sold by developer to an investment company , it is the investment company's insurance which has liability for making the building safe.

    The situation is like a design fault on a bus,the bus operating company or bus manufacturer has responsibility for putting right, not the passengers.

    So make an application to the Magistrates Court for declaration the £10,000 bill is paid by freeholders insurance.


      I don't see that a demand is reasonable or payable when the outcome of the application for a grant is unknown. You are entitled to know what "maintenance" is required and a quote for the cost. I suggest that you request a copy of all relevant documents such as reports and fire risk assessments. The nature of the work required and the terms of your lease will determine who is responsible for any cost.


        Hi Gordon999 and eagle2,

        Many thanks for your quick and very useful advice. I'll share this with other leaseholders and act accordingly. Thanks again.


        Latest Activity


        • Reply to Dissolve company and regain shares
          by ram
          As above post number 2

          The Limited company owns the building, and the flats. ( R.M.C )
          The leaseholdrs become members of the Ltd company and shares are issued to each flat ( one share per flat )
          They then have a share in the company that owns the freehold ( they are not freeholders,
          22-09-2021, 21:22 PM
        • Dissolve company and regain shares
          by LaraJara21
          Good afternoon

          I am the director of a small a residents management company / limited company and We want to dissolve the limited company so each freeholder can regain their own shares. I would be extremely grateful if someone could advise on if this is possible and if so, how do we that?...
          22-09-2021, 11:35 AM
        • Negotiating a lease extension
          by LizLease
          Hi all, I am new to the forum.
          I am looking to extend the lease on a flat (currently under 70 years).
          I received a quote from the freeholder and a valuation from a surveyor (£3k lower than the freeholder's figure).
          I spoke to the leasehold Advisory Service who said to ask the surveyor...
          21-01-2021, 12:44 PM
        • Reply to Negotiating a lease extension
          by sgclacy
          If you were to challenge the costs afterwards, almost certainly it would be dealt with as a paper review and is not as daunting as it might seem . The Tribunal generally think that around £350 plus VAT for dealing with the Section 42 Notice of claim and circa £1000 plus vat for the deed of surrender...
          22-09-2021, 13:38 PM
        • Reply to Renewing the lease and sublet charges
          by Gordon999
          I have some faint recollection that a complaint of " in-house legal team" was raised before a LVT or FTT Tribunal and Chairman decided "in-house team" did not qualify as "solicitor", who are required to conduct CDD ( Client Due Diligence ) before taking...
          22-09-2021, 12:28 PM
        • Renewing the lease and sublet charges
          by mpppen
          I've just about finished the tortuous process of renewing the lease at a flat we own bringing it up to 170 years and no ground rent (yay).

          It is rent out and I do keep getting sublet registration demands from an infamous mgm company on here.

          I've read back through the forums...
          21-09-2021, 18:47 PM
        • Reply to Example "Deed of Variation" for extending the lease term.
          by Lat
          What is wrong with the following process to register the "Deed of Varation"

          All that is required of me is to get the "Deed of Variation" registered with the Land Registry and provide a copy of the new lease to the Company Secretary.

          The Process.
          22-09-2021, 12:16 PM
        • Example "Deed of Variation" for extending the lease term.
          by Lat
          I have tried google but there is very little to show. Does anyone have a redacted example of a "Deed of Variation" that they have had to sign?

          The criteria in my case is...

          1. Shared Freehold flat in block of flats
          2. Freeholder is Residents Company Ltd with...
          04-09-2021, 11:24 AM
        • Reply to Dissolve company and regain shares
          by Gordon999
          The RMC has legal rights under the lease to administer the service charge account and demand annual service charge contribution from leaseholders. . It should not be dissolved because it holds the freehold title of the building.

          If you transfer the freehold title to the leaseholders,...
          22-09-2021, 12:05 PM
        • Right to Manage Costs
          by Pariah81

          I am part of a residents association that is exploring right to manage (RTM).

          We are a 30 flat block in the Ealing area.

          We want to get advice on the process so how much should we be expecting to pay for our legals?

          I'm also aware we have to pay...
          21-09-2021, 13:48 PM