Landlords who are leaseholders with share of freehold - Dormant company issue
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Member 3
Member 3
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2 months ago
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Are any other landlords who are leaseholders with a share of freehold finding that their managing agents are filing dormant accounts for their freeholder company at Companies House?    If so, you may or may not be receiving separate service charge accounts.   Having looked into this problem in detail as an accountant, I believe the guidance in the RICS code on this topic is incorrect.  In other words despite being referred to and refuted by the accountancy standard setters, the guidance has not been updated.  These types of companies are not dormant and should be filing active company accounts at Companies House annually. 

If you receive accurate annual service charge accounts, this may not make a lot of difference to you.  But if you dont, you may not be receiving any financial information at all, despite being required to continue to pay service charges.    The issue is complex, but the guidance has resulted overall in leaseholders being disadvantaged.   

Do please let me know if this is something you are experiencing. 

Many thanks

 

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