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[eagle2]

The reserve fund may only be used for its intended purpose ie capital expenditure. The MC does not have the right to ask for monies to be used as loans. It may also be ultra vires unless the Memorandum of Association permits the Company to grant loans.

Do the service charge accounts indicate...

[eagle2]

Is "capital expenditure" defined in the lease? It is usually meant to refer to larger items of repairs and maintenance which do not recur annually., It would appear that the loan is not permitted. An average of £1,400 arrears per leaseholder is excessive, there seem to be major problems which...

[eagle2]

AndrewDod,

That works only if the director holds a majority interest and the other leaseholders cannot remove him.

In the example, the director could go further and not pay any service charges at all. The service charges for the other leaseholders could be increased to unreasonable...

[eagle2]

As LH64 says, it is not unusual for a management company to raid the reserve fund monies. The lease should spell out the purpose of a reserve fund and lending monies is unlikely to be authorised, so there is probably a breach of the terms of the lease.

50k is an enormous amount to be lending...

[eagle2]

The FTT does not have the jurisdiction to consider payments, so any items which you have paid which you cannot agree with the freeholder should go through the county court. Similarly, claims for loss of rent would need to be dealt with through the same court. A claim through the FTT would be based on...

[eagle2]

Macromia - Just to clarify, I was considering what usually happens rather than the facts of this particular case and I agree that we do not possess all the information. In practice, leaseholders are usually unaware of payment arrangements made with other leaseholders and if they try to find out, they...

[eagle2]

The FTT has limited jurisdiction. It can determine whether a service charge is payable and is reasonable and how much of the charge is payable by you. It cannot assess damages as such but you may be able to raise some of the issues when arguing that the cost is unreasonable or part of the cost is not...

[eagle2]

HMLR will continue to record the existing freeholder until the freehold is sold by the liquidator who should be collecting any ground rent unless (s)he considers the collection costs would exceed the amount involved. The best course of action would be to contact the liquidator who should be able to...

[eagle2]

Many management companies are ignoring s20, it is toothless, so it is not worth pursuing.

Your best option is to appoint new directors so that you have a majority vote in the board room, The new directors can then investigate your concerns.

[eagle2]

You should contact the liquidator, the freehold has probably not been sold yet, it would need to be offered to the leaseholders before a sale can take place. You may wish to contact your fellow leaseholders with a view to purchasing the freehold, so that it does not get into the wrong hands.

[eagle2]

I suggest that you concentrate on the standard of the work as that seems to be your best option. Initially you should take up your concerns with the Council and try to reach agreement or compromise. If you are unable to reach agreement, you could suggest that you jointly instruct a surveyor to issue...

[eagle2]

At present alternative payment arrangements are being made with some leaseholders but the other leaseholders are unaware and they are not being given the same option. So it is unfair on those leaseholders who pay strictly according to the lease. I am saying that all leaseholders should have the right...

[eagle2]

The decision is incomplete, it starts at paragraph 5 and it does not set out the applicant's case. It is quite recent, so there could be an appeal outstanding. It is always better to request a hearing....

[eagle2]

I would investigate thoroughly the “debt recovery” company. The £650 cannot be justified, they probably used a standard letter held on a word processor.

A copy of your letter should suffice if you do not have proof of posting, which would have been preferable.

Did you...

[eagle2]

Yes, that is how it works....

[eagle2]

I recall being informed by the fire service that a copy of the fire risk assessment should be placed on the notice board.

[eagle2]

If you have evidence of a letter being sent to the management company, that should be sufficient to avoid any recovery costs. I would not pay any of the costs but you should consider making an offer "without prejudice save as to costs". I agree that you should prepare to explain why you did...

[eagle2]

A leaseholder can hardly be described as a late payer if demands have not been issued or if a payment arrangement has been agreed. A management company has a duty to avoid taking legal action and if service charges have escalated to a level whereby leaseholders are finding them difficult to pay in full,...

[eagle2]

Your solicitor should be able to supply you with a copy of the notice of assignment which it issues to the freeholder, or agent.

In the meantime, the managing agent ought to be able to let you know the amount which is payable or you can pay an estimated amount on account. A copy of emails...

[eagle2]

You are not liable to pay any charge which is not specifically mentioned in the lease. The freeholder seems to be trying it on. You can offer to buy the freehold but I doubt that you will be given a realistic figure and you may be asked to pay more charges for the privilege of receiving an amount which...