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Dissolved residential management company

Hi all,

It has come to my attention via my solicitor that my flat's building residential management company has been dissolved since late September 2023. I was in the process of beginning to sell my property (leasehold) when my solicitor advised me of this and how this will totally stall any sales for any leaseholder until resolved.

The background I am aware of is that since the building was completed in 2018, the directors of the company were from the building developer, and they simply grew tired of being listed as the directors and instead of being reasonable and ensuring the continuance of the company by securing alternative directors, they just let the accounts lapse and now the company has been dissolved.

The managing agent recently invited leaseholders to volunteer to become directors of the management company, failing to admit it has been dissolved since September so any appointments would be to a dissolved entity! 

I am aware from Google of how a dissolved company may be returned to active status again, however my query now is what could I do to expedite this process? Firstly, my fellow neighbours are blissfully ignorant (most flats are rented, so until owners come to sell they probably won't be interested in this at all), should I make everyone else aware to put pressure on the managing agent or the freeholder/landlord to reinstate the company?

Secondly, what is the most common course of action to rectify this? I understand the various methods to return the company, however WHO is responsible for this? We have a managing agent who seem totally incompetent to do much so far, very slow responses to any query from bins to legal matters such as this.

Lastly, should I even continue paying my service charge (to the managing agent) given there is no management company and this could be a breach of the lease, therefore why should leaseholders pay as usual when it is not business as usual currently.

Comments

  • eddddy
    eddddy Posts: 16,121
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    edited 15 November 2023 at 2:37PM

    How many parties are there on your lease?

    Is it a 2 party lease?
    • Freeholder (who is responsible for management of the building etc, and probably employs the management company)
    • Leaseholder

    Or a tri-partite (3 party) lease?
    • Freeholder 
    • Management Company (who is responsible for management of the building etc)
    • Leaseholder

    If it's a 2 party lease, it's probably not such a big problem for you. It's up to the freeholder to resolve (assuming the freeholder still exists).


  • eddddy said:

    How many parties are there on your lease?

    Is it a 2 party lease?
    • Freeholder (who is responsible for management of the building etc, and probably employs the management company)
    • Leaseholder

    Or a tri-partite (3 party) lease?
    • Freeholder 
    • Management Company (who is responsible for management of the building etc)
    • Leaseholder

    If it's a 2 party lease, it's probably not such a big problem for you. It's up to the freeholder to resolve (assuming the freeholder still exists).


    3 parties. Freeholder is a well-known company based offshore, and use an agent again well-known company, to collect Ground Rents and act for them in any freehold matters. Management company is dissolved. I am the leaseholder (sole).
  • eddddy
    eddddy Posts: 16,121
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    brainiack said:

    3 parties. Freeholder is a well-known company based offshore, and use an agent again well-known company, to collect Ground Rents and act for them in any freehold matters. Management company is dissolved. I am the leaseholder (sole).

    So I guess one route is that the leaseholders could apply for The Right To Manage.

    That needs over 50% of the leaseholders to club together to form a company to take over management of the building.

    The 50%+ leaseholders would probably then want to employ a management company to do all the work - but the management company would take instructions from the leaseholders.

    See: https://www.lease-advice.org/advice-guide/right-manage/


  • eddddy said:
    brainiack said:

    3 parties. Freeholder is a well-known company based offshore, and use an agent again well-known company, to collect Ground Rents and act for them in any freehold matters. Management company is dissolved. I am the leaseholder (sole).

    So I guess one route is that the leaseholders could apply for The Right To Manage.

    That needs over 50% of the leaseholders to club together to form a company to take over management of the building.

    The 50%+ leaseholders would probably then want to employ a management company to do all the work - but the management company would take instructions from the leaseholders.

    See: https://www.lease-advice.org/advice-guide/right-manage/


    This is the least likely option in my opinion. Most of the other flats (35 in the block) are rented out so the landlord owners will not be interested in this at all, and selfishly neither am I when all I want is to get rid and out of this situation in the quickest possible way now.

    The managing agent appears to be just ignoring the fact the company has collapsed, and is still assuming responsibility for collecting and spending the service charges and attempting to seek directors to appoint. Can they still do this at the present time? On what legal basis? It appears they are at best being dishonest about it as they have not informed leaseholders of the current situation and just think they can carry on without a company at all.

    I was hoping the managing agent will somehow reinstate the company as otherwise they will have no lawful ability to continue in situ, and/or the freeholder may have an obligation to ensure the company is operational as part of the lease.
  • Jonboy_1984
    Jonboy_1984 Posts: 1,191
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    The actual reinstatement at companies house isn’t particularly onorous - https://www.smallfirmsservices.com/reinstate-dissolved-company/
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