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Alex J.
Alex J., Solicitor
Category: Property Law
Satisfied Customers: 3695
Experience:  Two years conveyancing experience.
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My wife and I have a leasehold property. Ours is the basement

Resolved Question:

My wife and I have a leasehold property. Ours is the basement flat, with three other flats on top of one another. The other leaseholders are on a RTM (right to manage co.)
We have been invited to join the group which apparently means our names would appear on Companies House searches.
They suggest that it may deter prospective buyers if we are not involved with the management company and if in the future we wished to sell.
However I have been quite happy just dealing with our freeholder direct.
What I would like to know is what advantages and disadvantages would be if we were to join the group?
Thank you
Arthur
Submitted: 3 years ago.
Category: Property Law
Expert:  Alex J. replied 3 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Have they insisted that you become a director as well as a shareholder of the RTM Company?
Kind regards
AJ
Customer: replied 3 years ago.

Dear AJ

I quote in full the paragraph that I think is relevant in the letter that we received.

" We would like to invite you to join the board of directors in a formal capacity. This a requirement of the RTM but don't worry, it does not involve costly legal expenses. Your name will appear on Companies House searches."

No mention of being a shareholder.

I hope this helps to clarify things.

Regards

Arthur

Expert:  Alex J. replied 3 years ago.
Hi,
Thank you.
The main advantage is that you will have a vote on the management of the property.
Being a director means you have more responsibility for the management of the company and if all the decisions are taken by the directors instead of the shareholders/members then you would have to be a director to make it worth while.
I would say this is only worth doing if:
(a) You want to have a say in the management;
(b) you are made a shareholder/member of the company. Then you will actually have something that can be transferred to any one that buys your flat.
If you are not interested in participating in the management there is really no point in becoming a director of the company alone - this really has to be coupled with a shareholding or membership.
Does the RTM company own the freehold?
I look forward to hearing from you.
Kind regards
AJ
Alex J. and other Property Law Specialists are ready to help you
Customer: replied 3 years ago.

Hi

No, they are all leaseholders. The freehloder is actually a Ltd.company and ours is the only flat they are responsible to manage.

Regards

Arthur

Customer: replied 3 years ago.

Hi

No, they are all leaseholders. The freeholder is actually a Ltd. company and ours is the only flat they are responsible to manage.

Regards

Arthur