Communal area landlord electricity supply

[lagal]

Hi, I have recently acquired the freehold of a property alongside another lessee. It is a Victorian House converted to 3 flats and we are now responsible for the communal area lighting.  As I am new to this, and only ever had to care for the utilities of my own flat, can you please advise how to go about it? Am I supposed to get a small Business enllectricy contract even though we do not have a Business and it is a domestic property?

Thank you

[Grampa]

So just to clarfy you own the freehold of the building and there are  3 flats with  leases. Do you also own all the 3 flats/leases or is there another person who owns one of the flats?

 

[lagal]

I share the freehold with another person, who also owns one of the 3 flats. The 3rd flat is owned by our lessee. Thanks

[fionaf]

I don't have any definitive answers but this is a bit of a brain dump and may be what you've already covered:

• Do the leases state how the cost is apportioned or is it silent on the subject? Sometimes apportionment of communal area costs is covered in the lease by notes about the service charges incorporating the costs in a shared way.
• Is there a separate meter already? 
• The energy supply companies may have guidance on this when you start talking to them but good to have a bit of background before you do so so completely understand why you are asking so good luck! 
• As a landlord of a freehold property (not owned by a company) I pay utility bills during a void, I do not have to set up a separate company account, just pay it as an individual, so no 'business' account with the utility company required just good communication

[Grampa]

The correct way is for the freeholder to generate a budget to include all the overheads to maintain the building ie: grounds maintenance, utilities, building insurance reserve fund for and general works that may be required, fire alarm servicing, Asbestos report (legal requirement), electrical cert for common ways (legal requirement), fire risk assessment etc. Then a service charge invoice is then generated for all the leaseholders by the freeholder. The lease will dictate the % per unit but likely to to equal amounts. The leaseholders pay the funds into an account dedicated for that purpose set up by the freeholder.   

Or one owner could take ownership of the utility bill, pay it then ask for the appropriate  share from the others.