Deed of Covanant - Management Company Dissolved

purplesmiler82

Please be patient with me as I don't know all the jargon but trying to help an elderly neighbour out (and ourselves if we ever think of selling in the future)

We live on a small close of 11 houses on a private road built in 2011/2012 (4 on the main road and 7 up the actual street). Anyway to cut a long story short our elderly neighbours are trying to sell but are having issues as the management company have dissolved. I have looked on companies house and it says the company was compulsory struck off in July 2017. The problem is that apparently the management company need to sign to agree the sale of the house..... where do they and we all stand in relation to this??? and also where does it leave us all in terms of the road??

Since we moved in (we were the first in when it was still a building site) we have never had any communication from the management company, never paid any money to them all be it never had any work done either.

I am presuming that we need legal advise but if anyone can try and explain/help in basic terms without all the legal jargon it would be much appreciated!

Thanks in advance for your patience

davidmcn

Surely if your neighbours are in the middle of selling, they currently have the benefit of legal advice - so what are their solicitors saying?

purplesmiler82

davidmcn wrote: »

Surely if your neighbours are in the middle of selling, they currently have the benefit of legal advice - so what are their solicitors saying?

Not a lot!! The neighbours told them about the covanant back in January, they said it would only add approx a week to the sale...... From what I gather the neighbours thought the sale was all going smoothly and should be completed in approx 2 weeks time but it has now come to a stand still due to having no one from the management company (which no does not exist) to sign. From what the neighbour has said he himself has phoned the land registry office to explain that their is no management company to sign but they have said that someone has to sign it. (If it were me I would be getting on the solicitors case)

On a personal note I would like to really know how this effects me??? We are not thinking of selling in the near future but what about the road?? Who now owns this?? What about drains/sewers etc??

davidmcn

Depends exactly what the deeds say. I haven't read them, I don't know whether you have. Your neighbours' solicitors will have though, and ought to be able to advise on solutions for them - which I presume would also apply to you.

SmashedAvacado

who owned the management company? was it the developer or the owners of the houses?

You have 2 options, get the company reinstated by paying the late filing fee (but you need to have the cooperation of the former directors for this) OR another option would be ask to buy the relevant site from the crown bona vocantia (assuming it is owned by your freeholder).

First option quicker but only works if you have the cooperation of whoever was running the management company. you don't need much of their cooperation

this will impact all owners who are going to be unable to sell until its sorted / unable to mortgage also most likely

purplesmiler82

SmashedAvacado wrote: »

who owned the management company? was it the developer or the owners of the houses?

You have 2 options, get the company reinstated by paying the late filing fee (but you need to have the cooperation of the former directors for this) OR another option would be ask to buy the relevant site from the crown bona vocantia (assuming it is owned by your freeholder).

First option quicker but only works if you have the cooperation of whoever was running the management company. you don't need much of their cooperation

this will impact all owners who are going to be unable to sell until its sorted / unable to mortgage also most likely

The management company was sent up and run by the builders/developers but as a separate company from their building one if that makes sense. From what we can gather their building company also went into liquidation too

This sounds much more complex than I thought!