Minister announces end to new-build leaseholds

[AtW]

Problem is that as more leaseholders are involved the harder it is to get a decision. Probably best if large blocks are professionally managed.

The key is for the flat leaseholders to own freehold via corp entity (plus have long like mine leaseholders of 900+ years with peppercorn rent), for houses leaseholding does not make sense

[Paddy]

Yes and that’s why leaseholds on flats like mine should work via freehold assigned to the company in which leaseholders own equal shares - this way service fee is managed but no crazy tulip can happen as easily as in most new big tower flats

In which case you need to pay special attention to the running of the Freehold Ltd Co. Make sure the company does not get into a situation whereby it can have a compulsory winding-up order. Make sure it has a substantial sink (sinking) fund for unseen eventualities.

[Martin@AS Financial]

Problem is that as more leaseholders are involved the harder it is to get a decision. Probably best if large blocks are professionally managed.

The issue is that there are not enough good quality management agents. The vast majority that i have dealt with have been utterly woeful and tend to side with the freeholder.

[AtW]

The issue is that there are not enough good quality management agents. The vast majority that i have dealt with have been utterly woeful and tend to side with the freeholder.

That's the whole point - I am effectively a freeholder by virtue of owning part of the company that owns freehold, the management company that actually does work in the building is hired by the company that owns freehold, ie - us (I am one of the Directors there), we approve things to be done.

Granted it's a small block of just 8 flats, a lot easier to deal with fewer people involved.

[vetran]

The issue is that there are not enough good quality management agents. The vast majority that i have dealt with have been utterly woeful and tend to side with the freeholder.

sounds like an area that needs legislation then.

[vetran]

In which case you need to pay special attention to the running of the Freehold Ltd Co. Make sure the company does not get into a situation whereby it can have a compulsory winding-up order. Make sure it has a substantial sink (sinking) fund for unseen eventualities.

precisely or they run up the list of shared jobs and they sell their flat before the bill becomes due.

[Martin@AS Financial]

Leasehold: a Mortgage Strategy investigation

Good article from Mortgage Strategy

Leasehold: a Mortgage Strategy investigation - Mortgage Strategy