Buying Freehold at our block of flats

[Keitai]

£61,000 between however many residents want to join. 12 have paid their £200. 22 flats. Are there any negative reasons notvto proceed ? E.g. will it be my responsiblity as one of the directors to chase upside maintenance money from residents? We will still employ a management company (Foxes) for now

 

[Murdochcat]

What is the £200 foot? The legal fees?

 

[blup]

£3k each, sounds good value on the face of it, are there any structural issues coming up? Have you taken into account mbk’s advice on the other thread you started?

 

[motorbiking]

£61,000 between however many residents want to join. 12 have paid their £200. 22 flats. Are there any negative reasons notvto proceed ? E.g. will it be my responsiblity as one of the directors to chase upside maintenance money from residents? We will still employ a management company (Foxes) for now

There is a lot more to this than a few paragraphs on a forum. But in the shortest summary I can type:

Leaseholders usually have responsibility for maintenance and the right to appoint a management company or not.

Landlord has power to step in if leaseholders fail to maintain.

Owning the freehold avoids landlord and agents taking the P. But yes the resident controlled company would be responsible for arrears etc.

You probably already have the power to tender the management to another firm.

 

[Keitai]

£3k each, sounds good value on the face of it, are there any structural issues coming up? Have you taken into account mbk’s advice on the other thread you started?

I have. I used some of his advice in the meeting we had months ago.

It will be 5.5 to 6k each. I just don't want too much responsibility as a director of the freehold company which i will be. We currently use a management company to chase late payments I believe, just keep them?

 

[Keitai]

There is a lot more to this than a few paragraphs on a forum. But in the shortest summary I can type:

Leaseholders usually have responsibility for maintenance and the right to appoint a management company or not.

Landlord has power to step in if leaseholders fail to maintain.

Owning the freehold avoids landlord and agents taking the P. But yes the resident controlled company would be responsible for arrears etc.

You probably already have the power to tender the management to another firm.

If we employ a management company, which we have right now,will they deal with everything e.g rent arrears? I don't wanna be a director of the freehold company if it's gonna be a hassle.

When u say landlord, do u mean freeholder?

 

[blup]

I have. I used some of his advice in the meeting we had months ago.

It will be 5.5 to 6k each. I just don't want too much responsibility as a director of the freehold company which i will be. We currently use a management company to chase late payments I believe, just keep them?

There alternatives to director shareholder model if company ownership if you want share responsibility

 

[Keitai]

There alternatives to director shareholder model if company ownership if you want share responsibility

We are looking at having directors but maybe when other two leave might just be me then shares for everyone who joins and they then get a share of profits if we extend any of the remaining leases. Basically I don't want to do much work , too busy but wanna get the rewards from having the freehold

 

[blup]

We are looking at having directors but maybe when other two leave might just be me then shares for everyone who joins and they then get a share of profits if we extend any of the remaining leases. Basically I don't want to do much work , too busy but wanna get the rewards from having the freehold

I doubt there will be a huge amount of work after the changeover, you are able to delegate m. Just need to avoid being the notional front man as others take the decisions.

 

[motorbiking]

If we employ a management company, which we have right now,will they deal with everything e.g rent arrears? I don't wanna be a director of the freehold company if it's gonna be a hassle.

When u say landlord, do u mean freeholder?

yes and yes. The key is finding the right company. Some are good at the legal side of things (risk, recovering areas etc.) some are good at the practical things (painting, cleaning lawn mowing).