Residents management company advice for freeholders

FreeholdManCom

We have a residents management company that was set up by the builder for our small road. This was created to deal with the upkeep of our private road and a small verge. The title of land containing the road was transferred to this management company but sorting out service charges was left to us as directors of this company. Yearly costs are minimal (insurance and paying for Companies House confirmations) and so rather than setting up a formal service charge system we sort out any costs between us and also do any updates for Companies House. One of our directors would like to dissolve the company but there are other legal complications we would like advice on which includes the fact that the builder had set this up to allow him at a future date to possibly continue his development. Can anyone point me to someone who could give unbiased advice? - so far my search has only produced agencies that can only can give advice on leasehold situations.

DullGreyGuy

Are the properties themselves freehold or lease?

If the company owns the land, what is the proposal going forward if the company no longer exists? 

daveyjp

What is the reason one director wants to dissolve the company?

I assume the builder has retained rights of access over the private road, but this is separate to the service charge issue.  The details of any such rights will be in the title for the land.

FreeholdManCom

The properties are all freehold. The reason that one director wants to dissolve the company is that he can see no use for it. I have read all the documents and my view is that we cannot dissolve the company without incurring costs and problems down the line but I need legal confirmation that my understanding is correct and also an explanation of our rights going forward.

propertyrental

FreeholdManCom said:

We have a residents management company that was set up by the builder for our small road. This was created to deal with the upkeep of our private road and a small verge. The title of land containing the road was transferred to this management company

So if you dissolve the company you will first have to transfer ownership of the road to....... who?

One of the freehold property owners? That won't work!

Ah! Idea! Into the joint ownership of all the freehold property owners. But then what happens when a property is sold....? And since the LR allows a maximum of (I think) 4 names, if there are more than 4 houses you'd need a company to own the land with the householders being shareholders.

Oops! Isn't that the current set-up? I wonder why?

FreeholdManCom

I am not at liberty to give all the details of our situation - just that it is a little unusual and that is why I am looking for recommendations for agencies that can offer legal advice. So far I have tried Which? Legal and The Law Society. I have also been advised to try Citizens Advice but they are overwhelmed with more important issues in these times.

eddddy

FreeholdManCom said:

I am not at liberty to give all the details of our situation - just that it is a little unusual and that is why I am looking for recommendations for agencies that can offer legal advice. So far I have tried Which? Legal and The Law Society. I have also been advised to try Citizens Advice but they are overwhelmed with more important issues in these times.

It sounds like you want advice on Company Law and maybe Property Law.

Organisations like Which? Legal, Citizens Advice (and Home Insurance Legal Cover) will only cover stuff like Consumer Law, and Contract Law as far as it relates to consumers.


So if you want legal advice you'll probably need to find a solicitor who specialises in those areas. I guess that might be quite expensive.

Contact a few solicitors firms to ask if they have somebody (or a team) with relevant experience. 

I assume you won't need a solicitor with 'ultra-specialised' knowledge - because if you're trying to do something that is 'ultra-specialised' or complex or risky, you probably need to stop - and do something more standard instead.

loubel

As others have covered, dissolving the company which owns your private road would be a bad idea.

If the company directors need advice on their obligations then a company solicitor and/or accountant should be sought to help.

If the company needs advice on the title then a property solicitor should be able to help.

If you want to cover everything in one them possibly a commercial property solicitor would be the way to go, but it's hard to say as we don't know the nature of your queries.

FreeholdManCom

Thank you - you are right I need advice on Company Law and Property Law. Your advice has helped me a lot in clarifying our position in my mind.