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    • N33D H3LP
    • By N33D H3LP 18th May 17, 7:46 PM
    • 16Posts
    • 0Thanks
    N33D H3LP
    Relationship between Freeholder and Management Company??
    • #1
    • 18th May 17, 7:46 PM
    Relationship between Freeholder and Management Company?? 18th May 17 at 7:46 PM
    Hello there,

    I would be very appreciative of some advice here.

    The majority of properties on our estate are freehold. Within our Deed of Transfer there are various covenants, some of which state that we have to contribute towards communal areas or "Management Areas" which are shared drives and access ways etc.. There is a Ltd Management Company (created within original Deed of Transfer) set up and run by volunteers to this effect. This is all fine and I understand this.

    My first question is, what is the relationship between myself as a freehold owner and the entity which is the Management Company? Does my covenants to the Management Company (contained within various schedules of my Deed of Transfer) create a tenancy that would fall under any Landlord and Tenant Law?

    To further elaborate - the vast majority of freehold purchases have completed without the requirement (set out in Deed of Transfer) that a Deed of Covenant is signed by various parties. This makes sense as it would be proof that the new owners have agreed to pay the charges etc to the Company. So my real question is, would this arrangement be one that could potentially fall under the Landlord and Tenant (Covenants) Act 1995 as the estate was completed and Deed of Transfers drafted from 1999 onwards?

    A director of the Management Company has challenged that the Deed of Covenants have not been entered into thus potentially making it challenging to collect any "service charges". I just can't perceive that so many of these properties completed with the conveyancers seemingly ignoring this requirement unless there is legislation that they're relying on to negate this?

    Many Thanks

    David
Page 1
    • G_M
    • By G_M 18th May 17, 8:15 PM
    • 39,610 Posts
    • 45,106 Thanks
    G_M
    • #2
    • 18th May 17, 8:15 PM
    • #2
    • 18th May 17, 8:15 PM
    Hello there,

    I would be very appreciative of some advice here.

    The majority of properties on our estate are freehold. Within our Deed of Transfer there are various covenants, some of which state that we have to contribute towards communal areas or "Management Areas" which are shared drives and access ways etc.. There is a Ltd Management Company (created within original Deed of Transfer) set up and run by volunteers to this effect. This is all fine and I understand this.

    My first question is, what is the relationship between myself as a freehold owner and the entity which is the Management Company? Does my covenants to the Management Company (contained within various schedules of my Deed of Transfer) create a tenancy that would fall under any Landlord and Tenant Law?
    No.
    Without seeing the documents one can't be sure but I'm guessing all the freeholders (including you) are shareholders in the Mgmt co., but this may be wrong.

    To further elaborate - the vast majority of freehold purchases have completed without the requirement (set out in Deed of Transfer) that a Deed of Covenant is signed by various parties. This makes sense as it would be proof that the new owners have agreed to pay the charges etc to the Company. So my real question is, would this arrangement be one that could potentially fall under the Landlord and Tenant (Covenants) Act 1995 as the estate was completed and Deed of Transfers drafted from 1999 onwards?
    No. It is nothing to do with LL & Tenant law.

    A director of the Management Company has challenged that the Deed of Covenants have not been entered into thus potentially making it challenging to collect any "service charges". I just can't perceive that so many of these properties completed with the conveyancers seemingly ignoring this requirement unless there is legislation that they're relying on to negate this?

    Many Thanks

    David
    Originally posted by N33D H3LP
    If some or all of the freeholders completed purchases that did not contain the relevant covenants, then it is likely that legally
    a) they are not shereholders and
    b) they cannot be forced to contribute

    If you want more precise advise, either
    * take all the documts to a solicitor, or

    * post everything here eg
    - the exact wording in your Title deeds
    - the exact wording in any relevant/related Deed
    - the Mangt Company articles of association
    Last edited by G_M; 18-05-2017 at 8:26 PM.
    • N33D H3LP
    • By N33D H3LP 18th May 17, 9:21 PM
    • 16 Posts
    • 0 Thanks
    N33D H3LP
    • #3
    • 18th May 17, 9:21 PM
    • #3
    • 18th May 17, 9:21 PM
    If some or all of the freeholders completed purchases that did not contain the relevant covenants, then it is likely that legally
    a) they are not shereholders and
    b) they cannot be forced to contribute

    If you want more precise advise, either
    * take all the documts to a solicitor, or

    * post everything here eg
    - the exact wording in your Title deeds
    - the exact wording in any relevant/related Deed
    - the Mangt Company articles of association
    Originally posted by G_M
    Thanks for your reply.

    I am trying to attached JPGs of the relevant documents but am struggling as when I click "insert image", it is requesting a URL??

    Thanks
    • westv
    • By westv 18th May 17, 10:01 PM
    • 4,215 Posts
    • 1,790 Thanks
    westv
    • #4
    • 18th May 17, 10:01 PM
    • #4
    • 18th May 17, 10:01 PM
    I thought that there was a court case (can't remember which) which established that service charge covenants connected to freehold property "ran with the land" whatever was or was not signed by subsequent owners.
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