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Share of costs by lease

Share of costs by lease

Postby jayzeus » Thu Nov 17, 2016 9:58 pm


Our flat is leasehold where we hold a share in the freehold company of building with three others (all equal shares).

The costs the leaseholders are expected to pay for maintenance (painting, roof, etc) and the split of these costs (based on water rates, fixed to certain amount by a deed of variation) is specified in the lease.

One of the leaseholders is claiming that at historic board meetings (circa 15+ years ago, pre-dating ownership of any other leaseholder), certain costs splits were agreed which deviate from those of the lease.

The leaseholder in question does not have minutes of these board meetings to present to the other leaseholders, though sometimes forwards email exchanges between previous leaseholders which suggest some form of cost sharing agreement other than that of the lease.

Invariably, and I try to say this without betraying bias, the historical agreements this leaseholder refers to are to his benefit with respect to the cost splitting per the lease. We have been accommodating in the past but there's growing frustration amongst the other leaseholders with the referencing of these historical agreements for which there is usually little, if any, evidence.

Putting aside whether the agreements existed, how bound are the current leaseholders to them, even if they are documented as being resolved in a board meeting between individuals who no longer have an interest the freehold? Does the cost split per the lease stand unless all current parties agree to a division otherwise?

Thank you.
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Re: Share of costs by lease

Postby tph » Thu Nov 17, 2016 10:06 pm

I would have thought the current leaseholders if voting as a majority could vary these however a lot will depend upon the wording of the lease.
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Re: Share of costs by lease

Postby atticus » Thu Nov 17, 2016 10:20 pm

No deed varying the leases? Tough (on him).
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Re: Share of costs by lease

Postby dls » Fri Nov 18, 2016 5:34 am

The board does not have power to make such a decision. Even if he had the minutes, it would not signify.

The ratio paid is a series of agreement, one per lease, between each leaseholder under his lease and the freeholder company.
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Re: Share of costs by lease

Postby jayzeus » Fri Nov 18, 2016 10:27 pm

Thank you all for your replies, much appreciated.
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