Resigning as Director of RTM

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    Resigning as Director of RTM

    I have been Director of an RTM since 2005. Small conversion 3 flats I am owner of the smallest flat (1 bed).
    The service charge has been the same since then, and I have sent a demand to the other two members to increase the payment (We pay monthly into a maintenance fund ) As it’s running low and we need some maintenance on the roof, which will bring the fund down significantly.

    Long story short! One member is refusing the increase, because he says he is paying more than anyone else (he has the largest flat and is paying 40% of total The lease states proportions are 40/35/25%. The other member won’t pay increase until the first member pays his.

    I have taken over all of the duties of the RTM to the best of my
    but I’m now in my 70’s and want to sell my flat and move on as the stress of dealing with the RTM and it’s members. What is the best way out of this? My Co Director is not interested in taking over. I have had several talks with Leaseholders advisory, although helpful, the problems still exists.

    Do I

    1. Hand management back to Freeholders first.
    2. Resign as Director of RTM (then I assume the management will automatically revert to Freeholders.

    I no longer want the ongoing stress of trying to engage the
    other members as it is effecting my health and Im finding it difficult to sell my flat because most buyers don’t want the hassle involved in running an RTM.

    Apart from hiring a solicitor (at my own expense I presume)
    What would be the least problematic result.

    I look forward to hearing from anyone who has dealt with a similar problem.

    Thank You






    #2
    You can appoint a managing agent to manage although it may be difficult to obtain one which is willing to take on a small building with 3 units. It would be better than handing back responsibility to the freeholder. I suggest that you arrange a meeting of members to consider the options.

    Comment


      #3
      Originally posted by carolebrntt View Post
      My Co Director is not interested in taking over.
      Yet again the Dad's Army virus infects a half-decent bit of legislation. Your co-director IS in charge per the Companies Act 2006 and the RTM articles. If sitting back on his/her **** is his/her idea of company directoring I beg to argue.

      You have a perfectly simple solution.

      Write a proper letter to the RTMC's registered office and copy it to your co-directors(s) by email and their addresses if you know them saying in one concise sentence: "I resign with immediate effect as a director of The {dad's Army*} RTM Company Limited and require you to notify Companies House. I will separately forward my resignation letter to CH for clarity. I will retain my documents for ten years, and confirm I hold no company documents that you do not have. Yours sincerely etc." Send by registered letter and keep a copy. best do this in case the other cove resigns before you. That gets tricky for being the last one left to turn the legal lights out.

      * For "Dad's Army" insert your company name.

      Do not read my offerings, based purely on my research or experience as a lessee, as legal advice. If you need legal advice please see a solicitor.

      Comment


        #4
        Okay, three sentences... I have never been accused of being concise, self.
        Do not read my offerings, based purely on my research or experience as a lessee, as legal advice. If you need legal advice please see a solicitor.

        Comment


          #5
          When you sell, you will have to record ( on LPE1 ) that service charges are not being paid, and wont be paid.
          The buyers mortage company may refuse a loan. You "May" be able to sue the company for loss of sale and devaluation of your property.

          Threaten to take the directors -- i.e. The company, to court for not enforcing the lease ( e.g. getting in service charge monies )

          Best to just inform everyone that from today onwards you resign as a Director.
          Once not a director, you can sue who you like, + take the company to the F.T.T. tribrunal for not enforcing the lease.

          As you are selling - you have NOTHING to lose. They can't sack you / throw you out / forfeit your flat.
          Best not to be a Director just now.

          Comment


            #6
            Originally posted by eagle2 View Post
            You can appoint a managing agent to manage although it may be difficult to obtain one which is willing to take on a small building with 3 units. It would be better than handing back responsibility to the freeholder. I suggest that you arrange a meeting of members to consider the options.
            Thanks, yes I’m finding that no agents are interested in a small RTM. As far as calling a meeting is concerned. It’s quite difficult to communicate with the Co. Director he has not had much to do with the RTM so he is a Director in name only.
            The other member is outright difficult and never replies to communications. I really need to offload this nonsense, but can’t see a simple way out, it seems terribly unfair to me.
            I can’t see a solution other than hiring a solicitor, which I may have to do for the sak Ed of my health.

            Comment


              #7
              Ram
              I am finding it very difficult to sell my flat, simply because of the RTM responsibilities. If I ‘dump’ the RTM on the co Director and then take them to F.T.T that’s surely going to make things worse for everyone including me.

              Comment


                #8
                Maybe your purchaser would be willing to take on the role, at least give him/her the option. I agree that taking action against yourselves serves no useful purpose. The other members need to be informed fully of their options, the days of leaving you to do everything are numbered.

                Comment


                  #9
                  Originally posted by carolebrntt View Post
                  The service charge has been the same since then, and I have sent a demand to the other two members to increase the payment (We pay monthly into a maintenance fund ) As it’s running low and we need some maintenance on the roof, which will bring the fund down significantly.

                  Long story short! One member is refusing the increase, because he says he is paying more than anyone else (he has the largest flat and is paying 40% of total The lease states proportions are 40/35/25%. The other member won’t pay increase until the first member pays his.
                  1. Hand management back to Freeholders first.
                  2. Resign as Director of RTM (then I assume the management will automatically revert to Freeholders.
                  Sadly, though you've done your best , you have discovered to your cost the big failing in the RTM process in expecting flat owners to be able to budget for both cyclical and reactive maintenance and it is now impacting on the value of your property.
                  I think best notify the freeholder as soon as possible (he will get involved eventually anyway) as he is the only other party with an interest in the property being maintained .
                  Most likely he will have the skills and experience to set the budget and collect the contributions.
                  You should also resign to reduce your liability risk
                  Good luck sorting that
                  ​​​​​

                  Comment

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