Management of client account closure

[AndrewDod]

I suppose this belongs in this forum but is more general.

Let's suppose a managing agent for a RTM holds client accounts a) service charge b) reserve fund. They are held in trust but the account manager is the agent.

Manager's contract comes to an end and is not renewed. Can...

[AndrewDod]

Well of course if crooked freeholders add private legal costs to the service charge that will not be a legitimate service charge item and would inevitably be rejected at Tribunal. And if it is happening repeatedly and if the Directors cannot be removed the building will probably end up with a Tribunal...

[AndrewDod]

Bear in mind eagle2 we are not talking here about renters without any assets, nor are we talking about babies. We are talking about people who own (sometimes via a partial loan) a £500K asset which has to be properly managed according to the law and the contract they have signed, not only in their...

[AndrewDod]

The lease doesn't need to say that. Take a step back -- if there was an external freeholder, and they failed to collect an outstanding debt from a lessee, they would still be obliged to carry out any work and either accept a PERSONAL loss, or to sue for the debt. A RMC doesn't work any differently -...

[AndrewDod]

They have no choice but to sell up - sorry (or to dispute the charges if they are not according to the lease and the law)

Good luck with trying to manage by making up your own new rules for some.

There are many problems with leaseholder managed freeholds - and this is one....

[AndrewDod]

There is only one rule -- the lease (and the law). So no, there is only one rule for all....

[AndrewDod]

It is always a huge mistake to do anything other than obey the lease and the law. If work needs doing then the money needs collecting NOW - not according to some special schedule that differs from that applied to others - or they SELL THEIR FLAT if they cannot pay. It is absolutely simple. Anything...

[AndrewDod]

They pay what the lease says they should pay for works the lease says needs doing. If they can't afford it they take a loan, take a lodger or get sued. Or they sell their flat immediately. You MUST take legal action against errant lessees -- this is not a game or a charity. And if they do not pay it...

[AndrewDod]

A wise landlord is open to tenants reporting stuff that might be of interest to them.

I would however complain of things that alter your life in a bad way like rubble left on your side. Things like noise are more difficult to complain about....

[AndrewDod]

hybrice,

Yes, not being married makes a BIG difference. The tax split rules works totally differently for married folk.

[AndrewDod]

From point of view of tenant it is perfectly fine and a legitimate tenancy contract

From point of view of owners it is perfectly legal, and may also be perfectly fine depending on the agreement between them

From the point of view of the taxman it would not be at all appropriate...

[AndrewDod]

Umm.. they work for you. The managing agent does not get to decide who does works. You do....

[AndrewDod]

And in any case a hedge owner (if you are that) has no responsibility to remove branches straddling the boundary.

Unless your tenancy agreement says something very specific I'd be inclined to file this and the invoice in the "to think about in 2023" pile....

[AndrewDod]

No. Don't do it....

[AndrewDod]

As jpkeates says -- can't see that a property within an estate is exempt from council tax....

[AndrewDod]

Agree with that. I guess a lot is going to depend on the reason for the discrepancy -- e.g if they paid for the extension either to a previous company freehold or to the current company. If they granted themselves a free extension and this was at the same time as the other shareholder owned their share,...

[AndrewDod]

To address you two questions:

a) Can't see why you would/should get it "free". You all own the freehold, and part of the value of the freehold is your short(er) lease.

b) No they can't just make it up....

[AndrewDod]

I think it is worth putting some numbers to this.

Roughly, gas is about 3.5 times cheaper than electricity per kWh

However, it is not as simple as that for several reasons (i.e. this does not mean that for the same amount of heating your overall energy bill will be 3.5 x greater...

[AndrewDod]

The value of the freehold decreases by roughly the same about as the benefit you gain as lessee. I can't see this is an overall benefit or taxable.

The fact that you are a Director is not relevant one way or the other (of course you cannot make decisions as Director that are in your interest...

[AndrewDod]

1. That's normal. Of course you will contract to sort stuff you mess up, and to do so beyond any deposit. Arguments about how that is assessed/valued is a different matter.

2. Can't insure stuff that doesn't belong to you. Being accessible is the nature of the agreement. You can get your...