Problems with Share in Inherited Properties

[chappers27]

Quite a complicated one so bear with me.

My wife has 25% share in 5 commercial properties in London, as her share of inheritance. It was left to her by her father who was 50/50 in a business with his brother (my wife's uncle).

Now that she has her name on the deeds, she wants to find out about the leases, the bank account, the general running of the properties, potential exit clauses, rent reviews, use of agents etc.

The incoming rent of the properties has been paying the inheritance tax, but that's all finished now. She has been receiving a 'payment' from her uncle each quarter, but she has had no accounts to look at, no detail, no access to bank accounts, no access to properties, no input at all and no information. Her uncle seems to think that the properties are his. The uncle and his wife dictate everything and have relationships with agent, lawyers etc. My wife wants to be involved and know things. They constantly fob her off with some vague responses to her questions. They spent £9k on refurbishment for a property but the job was paid through the wife's personal account and then she took the money out of the business account. Ive told my wife that is very naughty but she doesnt want to rock the boat. They are also 'holding' monies back due to my wife, but nothing has been shared about how much and why. Neither the Uncle or his wife work, they are currently in France sunning themselves in their french property. They use one of their 'old' mates for a sale of one of the properties, but all he does is put a board up on the building, but not market it online. We asked to change the agent, they refused to even discuss. When we met up with them socially, I brought up the properties, and the Uncle said "that's not on the agenda for today".

I am presuming that she is entitled to know everything, have access to the bank account, request approval before spending any money, have the lease information, receive emails from lawyers about sales, speak to agent etc.

Would be great to get some advice. @The Resolver ?


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[Newchodge]

Who is the other 25% shareholder, and do they share your concerns?

 

[chappers27]

There are 4 each owning 25%.

50 - my wife and her brother (by way of inheritance) and yes he shares her concerns
50 - my wife's uncle and his wife (long time owners)

 

[IanSuth]

Been there done that

My wife had 3/37ths of 2 fields in scotland , the fields had been gifted to children a hundred years ago, passed down 2 generations and sat there.

They were rented to a farmer who owned adjoining land and managed by a land agent - on average they made and cost nothing each year after taking out his costs so no one really thought about them.

Then a cousin with no offspring decided due to local developments it might be good to look to sell - the entire family degenerated into mudslinging and accusations. Mainly over distrust that the agent was dealing via a single person who lived closest

After 3 years it was sold to a developer and after all fees came out she got about £10k which was really not worth the complete disintegration of several family friendships

 

[Gyumri]

My wife has 25% share in 5 commercial properties in London, as her share of inheritance. It was left to her by her father who was 50/50 in a business with his brother (my wife's uncle).

Now that she has her name on the deeds, she wants to find out about the leases, the bank account, the general running of the properties, potential exit clauses, rent reviews, use of agents etc.

what do you mean that she now has her name on the deeds? Are the properties owned by the company or jointly by the four individuals concerned?

I suspect the company owns the properties but as @IanSuth points out, you had better sit down if you can to work things out amicably otherwise you are going to be caught up with five years of litigation and a lot of anguish all round.

 

[fisicx]

The leases should be held by the land registry. You can apply for and receive copies.

 

[Bobbo]

what do you mean that she now has her name on the deeds? Are the properties owned by the company or jointly by the four individuals concerned?

I suspect the company owns the properties but as @IanSuth points out, you had better sit down if you can to work things out amicably otherwise you are going to be caught up with five years of litigation and a lot of anguish all round.

What company?

OP does not mention a company at any point.

 

[chappers27]

There is no company. It's all privately held.

 

[Gyumri]

They spent £9k on refurbishment for a property but the job was paid through the wife's personal account and then she took the money out of the business account.

I assumed from this that a company was involved.

 

[The Resolver]

The acquisitions pre-date the introduction of SPV companies - Special Purpose Vehicles through which to own, develop and manage properties for business purposes. There are tax benefits but nor sure if they are going to ibe that much relevant given there are presumably no mortgages on the properties . However its worth asking a tax/property specialist axs there may well be an attractive reason for all to move to a SPV and then enter into a Shareholders Agreement for regulating all shareholder rights /duties for the future.

It may well be that effectively this is a partmership governed , in the absence of an Agreement, by the Partnership Act of 1890. Terminating the ;partnership, as the OP can do, might trigger useful discussion.

I would like to see the entries at the Land Registry

Book yourself in for a free advice calll (below link)

 

[chappers27]

The acquisitions pre-date the introduction of SPV companies - Special Purpose Vehicles through which to own, develop and manage properties for business purposes. There are tax benefits but nor sure if they are going to ibe that much relevant given there are presumably no mortgages on the properties . However its worth asking a tax/property specialist axs there may well be an attractive reason for all to move to a SPV and then enter into a Shareholders Agreement for regulating all shareholder rights /duties for the future.

It may well be that effectively this is a partmership governed , in the absence of an Agreement, by the Partnership Act of 1890. Terminating the ;partnership, as the OP can do, might trigger useful discussion.

I would like to see the entries at the Land Registry

Book yourself in for a free advice calll (below link)

This is extremely useful. I will book a call. Thanks

 

[Kixoponev]

Your wife definitely has a right to know what's going on with the properties she partially owns. She should be getting full transparency on the leases, bank accounts, rent, expenses, and any decisions being made.
The uncle shouldn't be keeping her in the dark or making decisions without her input. It's not okay for them to just brush off her questions or avoid discussing the properties. The stuff about spending money through personal accounts is definitely sketchy too.
I think you should to get a property lawyer involved to make sure her rights are protected and to get the full picture. It's important to get everything sorted out so she can be fully involved and informed about her share of the properties.

 

[chappers27]

This is extremely useful. I will book a call. Thanks

Unfortunately I could not book the call, as it wasnt working on the website

 

[chappers27]

Your wife definitely has a right to know what's going on with the properties she partially owns. She should be getting full transparency on the leases, bank accounts, rent, expenses, and any decisions being made.
The uncle shouldn't be keeping her in the dark or making decisions without her input. It's not okay for them to just brush off her questions or avoid discussing the properties. The stuff about spending money through personal accounts is definitely sketchy too.
I think you should to get a property lawyer involved to make sure her rights are protected and to get the full picture. It's important to get everything sorted out so she can be fully involved and informed about her share of the properties.

I think the same and Ive been pushing her to do this. This is her dad's brother and they were in business for a long time, so she doesnt want to rock the family boat.. (she's slowly realising she'll have to)

 

[Newchodge]

I think the same and Ive been pushing her to do this. This is her dad's brother and they were in business for a long time, so she doesnt want to rock the family boat.. (she's slowly realising she'll have to)

It may be easier if she and her brother work together on this.

 

[The Resolver]

Unfortunately I could not book the call, as it wasnt working on the website

I just tried it a few times and it worked. If you want toPM me your number and range of times today i will call you