AGM passed special resolution to collect interest on arrears legally upholdable?

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

    #16
    No, that is not correct, you can normally proceed with routine works and larger items of expenditure should be covered by a reserve fund. You need to be realistic, it is extremely unusual for all leaseholders to be fully up to date, it happened once in my time. Just look at some of the service charge accounts, the average unpaid debts normally amount to approximately 1 or 2 months charges. In some cases, they are substantially greater than that.

    Comment


      #17
      Originally posted by eagle2 View Post
      No, that is not correct, you can normally proceed with routine works and larger items of expenditure should be covered by a reserve fund. You need to be realistic, it is extremely unusual for all leaseholders to be fully up to date, it happened once in my time. Just look at some of the service charge accounts, the average unpaid debts normally amount to approximately 1 or 2 months charges. In some cases, they are substantially greater than that.
      That is absolutely NOT what a reserve fund is for - it is not to cover a shortfall from some lessees. Directors who do that deserve to get chucked out. Not sure how you would proceed with routine works either unless very minor.

      Comment


        #18
        Originally posted by AndrewDod View Post

        That is absolutely NOT what a reserve fund is for - it is not to cover a shortfall from some lessees. Directors who do that deserve to get chucked out. Not sure how you would proceed with routine works either unless very minor.
        The purpose of a reserve fund is stated within the lease and it should provide funds for the larger non recurring items of expenditure. The annual budget should allow routine works to be carried out.

        Comment


          #19
          I'm out of here - sorry

          Comment


            #20
            In my view requiring interest to be paid would need to be under the Deed not as a result of an AGM resolution to be enforceable. If proceedings are issued, as others have indicated interest is payable at 8% pa from the due date plus issue fees. But it is suboptimal to start proceedings unless there is no other route to take

            Comment


              #21
              It is unrealistic to expect all leaseholders to pay on or before the due date, it just does not happen in practice.

              If the Company wants to impose interest charges to encourage payment by the due date, without resorting to legal action, it is enttiled to propose a resolution for members to decide.

              If anyone wishes to argue that managing agents should not deplete funds by taking their fees in advance before they have taken any action to collect service charge monies, I would not disagree but the idea that no services or maintenance may be carried out until all contributions have been collected is impractical.

              Comment

              Latest Activity

              Collapse

              • 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
              • 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 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
                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 the leaseholders paying...
                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
              • Reply to Freehold confusion
                by CStevens
                Yeah i guess i would agree with that but, as you say, the value is only to the leaseholders and a freehold subject to 999 years is not worth a great deal of money to anyone other than the occupants and in fact, if the leases are drafted correctly, they should require the leaseholders to become members...
                27-05-2022, 21:52 PM
              • 2-1 transfer - what does Freeholder do?
                by Flashback1966
                I am a Freeholder. Have a flat there too. I have received an email from the leaseholder's soclitors acting for Mr A. They are doing a 2-1 transfer from the names of Mr A and Ms B to just Mr.

                The solicitors want to know the requirements on completion.

                Is is just a notice of...
                26-05-2022, 18:46 PM
              • Reply to 2-1 transfer - what does Freeholder do?
                by Gordon999
                I suggest you reply to leaseholder's solicitor and request a copy of the land registry title to confirm the name of new leaseholder plus £15 registration fee....
                27-05-2022, 18:05 PM
              • Reply to Freehold confusion
                by davetg
                Thanks for the replies:-
                My friend is alive and well and shows up on google as he is very high up in a big American telecoms company so I should be able to get back in touch.

                I can't see my friend having any problem with the TR1 me replacing him on the freehold was always what was...
                27-05-2022, 16:50 PM
              Working...
              X