Can the freeholder be the director in both companies?

  • Filter
  • Time
  • Show
Clear All
new posts

    Can the freeholder be the director in both companies?

    Freehold for a site with 21 flats was sold to a private investor who did not realise until after the purchase, one of the property is on a shared ownership

    Service charge sky rocketed upon acquiring. They were taken to the tribunal and the amounts where revised.

    They continued mismanaging and over the past 8 yrs, no service charge statement were sent for 4 of those years. However a flat amount was still being made by the leaseholder while they dispute the continued increase in service charge and to obtain records of the missing service charge records. After 8 years, full records including receipts for the missing period have now been received.

    Leaseholder has noticed that some are invoices from a company to the landlords. However the landlord is the director of the company issuing invoices and the director of the company receiving and paying invoice. The freeholder has also recruited 4 full time staff that are being used to service the property including cleaning communal areas and gardening. They’ve also bought all equipment required to do the job and recording a rental figure every 3 months for use of equipment to service the site. Prior to all of this, these jobs were sourced from an external company.

    Is what the landlord/freeholder doing right or legal?

    The freeholder is entitled to charge for services which he is providing, the question is whether or not the charge is reasonable, is he charging more or less than the external company?


      The leaseholders are entitle to set up RTM to claim the right to manage the service charge account and stop any overcharging by freeholder.

      But the problem is most leaseholders are not very smart when facing up to the freeholder.


        It should be relatively simple to apply to the FTT and argue that the freeholder's charges are unreasonable as long as you can produce a comparable lower quote from an external independent source.


        Latest Activity


        • Can I put an office room in my garden?
          by darcia
          Hi, so I want to put an office in my garden which I think it'll be classified as outbuilding. It'll be of about 5 x 4 m I believe.

          Can I do it based on these clauses?

          Thanks very much for your help.
          1. Not to make any external or structural alteration or addition to the Property
          27-09-2021, 19:58 PM
        • Reply to Can I put an office room in my garden?
          by Neelix
          As you will need to alter the house electrics you will need to seek the written approval of the LL
          27-09-2021, 20:18 PM
        • Reply to Ground rent linked to value of property
          by sgclacy
          No great pearls of wisdom will come from employing a surveyor to work out the premium - they will give you a range of values depending on the capitalization rate and clearly you know how to do it - the ground rent does have a strong element of protection from inflation, but that is dependent on house...
          27-09-2021, 19:18 PM
        • Ground rent linked to value of property
          by ecfc29
          Hi all,

          Looking for some advice.

          My current GR is £100 pa, but in approx 16 years time will increase to 0.20% of the property value (1/500th as per lease), which is then reviewed at further 25 yr intervals until the end of the lease in c113 years time. So while there is no...
          27-09-2021, 12:15 PM
        • Reply to Ground rent linked to value of property
          by Gordon999
          You can download a free guide to statutory 90 years lease extension from LEASE website ( ).

          You can use the LEASE calculator to find out the "cost of statutory lease extension" now ( 113 years remaining ) , and 2 years later ( 111 years remaining ) and...
          27-09-2021, 16:26 PM
        • Incompetent Managing Agent
          by aki131960
          After years of poor management by our head leaseholder, we adopted the RTM with 4 directors and appointed managing agents. I had reservation about the agents and voiced these but one of the other 3 directors insisted that they had good references. As we were running out of time before the transfer...
          05-08-2021, 13:33 PM
        • Reply to Incompetent Managing Agent
          by eagle2
          The idea of a RTM Company is to remove yourselves from the freeholder, so I am not sure why you would wish to choose an agent recommended by the freeholder, but you can always suggest a trial and see how you get on.

          The leaseholder can resign from the RTM Company but you will still have...
          27-09-2021, 15:30 PM
        • Leasehold sweetener?
          by Bonehead33
          So the flat I'm considering will apparently come with a new leasehold of 99 years. If I pay full asking price (10k more than I think it's worth) then the flat will come with a 125 year lease. I'm new to leasehold. Is there any benefit to getting the 125 and paying extra? The flat is around 100k to buy...
          26-09-2021, 16:35 PM
        • Reply to Leasehold sweetener?
          by AndrewDod
          The service charge could be absolutely anything - may be £500 this year, but £20,000 next year, or even more when you find yourself one of the 1% of properties with cladding issues (or whatever comes next).

          As eagle2 says, service charges (and service charge fraud) are where all the bodies...
          27-09-2021, 12:31 PM
        • Reply to Leasehold sweetener?
          by Bonehead33
          Service charge is 500 per year. It's a town centre flat above a shop. No idea how reasonable that is?
          27-09-2021, 12:08 PM