Lease Extensions to be carried out for 3 Freeholders - can the Freeholders pay their solicitor costs from the maintenance fund?

Lease Extensions to be carried out for 3...

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I live in a Victorian conversion that has 5 flats.

2 of the flats are leasehold

3 of the flats have share of freehold

The 3 freeholders wish to extend the leases on their flats by ading 90 years.  They wish to pay for the solicitor and any other fees from the maintenance fund which all 5 flats pay into equally.  Is this appropriate use of the maintenance fund?

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By girlofwight
02nd Mar 2011 15:08

Depends

I think there are two things to look at:

(a) what does the constitution of the maintenance fund say?

(b) if its silent on the matter, do the leaseholders agree to joint funds being used in this way? 

If the answer to (a) is nothing (b) is yes, then I can't see any objection.  To be honest I can't see anyone complaining other than the other stakeholders so (b) is the issue. 

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By verav
02nd Mar 2011 15:39

Thank-you

Thanks, I'll check the Lese to see whether anything is stipulated about the use of the maintenance fund.

I expect that obtaining the agreement of all the Leaseholders is the way to go.

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