Rank: New forum user
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Hi all,
I would really appreciate you thoughts on the following:
I am unable to sell my flat as there is no management agent currently appointed to look after the block and therefore no recourse for the buyer (or Mortgage Company) if anything should go wrong.
The freeholder (a Limited Company) initially agreed to appoint a management agent which had been selected by the resident’s committee. However, they have since reversed their decision, stating that they have no legal obligation to appoint a management agent, and were not bound to do so by the lease. They have advised the residents to go down the “right to manage” process, which could take some time and cost money for solicitors ect.
The estate and roads are private so the local authority has no responsibility for the area.
My question is who would be responsible if a resident or any other member of the public were harmed as a direct result of lack of maintenance? For example: the collapse of a roof, or uneven pavement. Would the Freeholder be liable for the loss?
My thoughts are that the Freeholder has not done everything so far as is reasonable practical (SFAIRP) to ensure the safety of those who may be affected by their actives, acts or omissions. While I know that SFAIRP is mainly used to describe the duties of an employer towards employees and contractors, would it also apply where there is a common law duty of care?
The cost in terms of writing a letter of appointment seem insignificant compared to the benefits to be gained by the appointment of a management agent.
Thank you for your help.
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Rank: Super forum user
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This is property ownership issue and you should ask a solicitor to examine the agreements for you. To simply rely on the views of H&S practitioners would be at best risky. Seek professional legal advice I would recommend.
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Rank: Super forum user
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I agree with Bob (OMG, I agree with Bob?!!!!!!!) you probably should be getting legal advice from a property or conveyancing solicitor.
You are a little muddled in your thinking of SOFARP though, but sort of on the right track. It is a term that is generally used to describe certain statutory duties. In common law the duty is often what is 'reasonable'. This is a term that is flexible, and can change over time taking into account the standards and attitudes of society at the time i.e. what was reasonable years ago (kids up chimneys) might not be reasonable now. It also depends on the circumstances of the case.
I suggest a solicitor. Really I do.
Right then, off to find a kid to clean my chimney. KIDDING.
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Rank: Super forum user
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Phil it is a rare thing to find you agree with me, my God I must either lie down or have a drink to celebrate. Think I will go get a curry instead, the effect won't last too long as we no doubt find something else to argue over. Bit of fun really ain't it.
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Rank: Super forum user
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Ahhhh, curry. Now you're talking :-)
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Rank: New forum user
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Rank: Super forum user
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Great question but as already said its a Q for specialists. However keep asking such Q? As we all have knowledge to pass across to others;
Send me a personal email as I have gone through that very situation and I formed an official facilities management company to deal with it. Its very complicated, carries with it a lot of liabilities and duties and the first thing U need to do is to know your deeds inside out and the law re 'right to manage' a law that landlords and their agents did not want but the have now started to hide behind noting that freeholders do not want 'pepper corn' fees as that's what a lot of older agreements pay however [in my personal opinion which has nothing to do with IOSH what so ever] the newer agreements are simply stealing money
Be prepared for other owners on your estate etc to shout but not to pay their way nor do much and for legal, tax etc bills and you need at least 2 people to act as company directors NB: Not you and your wife etc!
The freeholder also has duties under law & the terms of the lease especially in common areas but U need to know as much as they do - How long have U had the flat and your solicitor who acted for U should become involved Best of luck
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Rank: New forum user
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Thank you Bob youel.
The situation is very difficult. The residents committee are attempting to go down the 'Right to Manage' route as a minimum, although they are pushing for 'Right to Enfranchise’ as the leases on the property are only 68 years so we have more problems than one.
The difficulty comes in trying to convince more than 50% of the lease holders to take part. My block is made up of nine properties, some are tenants, some are lease holders. The whole estate has 105 lease hold properties and about 80 freehold properties. Less than 50% of the leaseholders in my block are willing to put £150 in the kitty for solicitor's expenses, let alone the £3-4k each it will take to buy the lease for the estate. One chap is happy that there isn't a management agent as he doesn't want to pay a management fee.
My thinking in the original post is that I might have been able to change the freeholder's mind in appointing the management company, which would solve one of our problems, if I could show they had some duty of care (even if it's only common law and based on what is reasonable). I'm amazed that they had a change of mind at all considering that we weren't asking them for much...
I’m also concerned about whether or not our building insurance would still be valid with no management agent?
Thanks again!!
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Rank: Super forum user
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All mortgage holders have a duty to maintain their property under the terms of their mortgage U need to tell them that - the 'free holder' who holds your lease irrespective of what they think have duties under law e.g. 'Fire in common areas'
Nobody wants to spend £ irrespective and money is only 1 reason why leaseholders do not want to do anything especially so as the 'Right to Enfranchise’ is now present!
I really feel for U as most people want something for nothing - I initially saved £2500 PA and people still did not want to do anything nor even pay the £500 PA that we needed so I ahd to go to civil court to get £ off them!
Go with what U have as a few good men are worth many conscripted men and sell the idea to others as much as U can - I think that the flats can set up a separate company different to houses etc! And a solicitor will be needed [I use the word 'willl' as it all depends on what people know and who people know and what people are prepared to do - as U can skin more than 1 way]
Your insurances are probably not valid and insurers are good allies but take care before U talk to them as are mortgage companies as they can put pressure on that U cannot and the enforcing authorities especially fire are good
I found that many freeholders who held the lease's also had a link [ as a share holder and similar!] with the management companies so they were making £ out of the management fees - where this profit is not present [e.g. U set up your own comopany] it is yet another reason not to act
best of luck
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