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Homesweethome12
Posts: 11 Forumite
Hi there, advice sought please!
I own a house within a gated development which I want to sell. A management company was established to oversee maintenance of the common grounds that are shared by all 5 properties. The company was dissolved by the property developer in 2016 without my knowledge.
A restriction is in place on the title deeds for all 5 properties stating that the management company must authorise any transfer of title. I’m therefore currently reinstating the management company in order to have this restriction removed.
However, neither the developer nor the owners of the other properties want to act as managing director of the company once it is reinstated. There is the option of dissolving the company again once the restriction is removed, but I am concerned a potential buyer will be put off by there being no entity in place to manage the common grounds.
I equally don’t want to be made MD as this will mean I carry responsibilities even after the property is sold.
How should I proceed?
Thanks
I own a house within a gated development which I want to sell. A management company was established to oversee maintenance of the common grounds that are shared by all 5 properties. The company was dissolved by the property developer in 2016 without my knowledge.
A restriction is in place on the title deeds for all 5 properties stating that the management company must authorise any transfer of title. I’m therefore currently reinstating the management company in order to have this restriction removed.
However, neither the developer nor the owners of the other properties want to act as managing director of the company once it is reinstated. There is the option of dissolving the company again once the restriction is removed, but I am concerned a potential buyer will be put off by there being no entity in place to manage the common grounds.
I equally don’t want to be made MD as this will mean I carry responsibilities even after the property is sold.
How should I proceed?
Thanks
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Comments
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IANAL but would it not make more sense for the restriction to be removed on your house rather than create a management company no one wants? You could point the LR to the dissolving of the management company as the reason.
The fact there's no mechanism in place to manage the common grounds wont go away in either case. What is the current solution regards that?0 -
How are the common areas maintained?
What happens if the gates stop working, need painting, or come off their hinges?
I suspect that the real reason for the restriction etc, is because people generally don't want to buy a property without a process in place for maintaining the common areas. (e.g. fixing the gates when they break.)
Ignoring the legalities of dealing with the restriction, you might find that potential buyers are worried that none of their potential neighbours seem interested in maintaining the shared facilities.0 -
Why are none of the neighbours interested in taking on responsibility? Being a director of a management company which presumably won't be doing much is hardly all that onerous. You have pointed out to them they'll have the same problems when they sell?0
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What is the exact wording of the restriction?Homesweethome12 wrote: »I own a house within a gated development which I want to sell. A management company was established to oversee maintenance of the common grounds that are shared by all 5 properties. The company was dissolved by the property developer in 2016 without my knowledge.
A restriction is in place on the title deeds for all 5 properties stating that the management company must authorise any transfer of title. I’m therefore currently reinstating the management company in order to have this restriction removed.
If it refers explicitly to that particular management company, then you can't "reinstate" it. It no longer exists. It's "dead". You can start another management company, perhaps even with a similar name, but it isn't the same company.
It's like giving your kid the same name as your dead grandfather - the name's the same, but it's not the same person.
If nobody wants to be involved in the running of the company - and, therefore, with the management of the development, then you are on a loser...However, neither the developer nor the owners of the other properties want to act as managing director of the company once it is reinstated. There is the option of dissolving the company again once the restriction is removed, but I am concerned a potential buyer will be put off by there being no entity in place to manage the common grounds.
I equally don’t want to be made MD as this will mean I carry responsibilities even after the property is sold.
Right now, the management is not being delegated by the freeholder to anybody. Therefore, it's the freeholder's responsibility. Who's the freeholder?0 -
Land Registry have ruled that the only way I can remove the restriction is by restoring the company first, so I have no choice but to proceed with that.
As to management of the common grounds, bizarrely none of the other owners seem remotely concerned with having an entity in place to manage it.0 -
Homesweethome12 wrote: »Land Registry have ruled that the only way I can remove the restriction is by restoring the company first, so I have no choice but to proceed with that.
As to management of the common grounds, bizarrely none of the other owners seem remotely concerned with having an entity in place to manage it.
Sounds a bit risky.
Will buyers want to buy your house, when they find out there is no mechanism in place to maintain and repair the common areas?0 -
you can restore a dissolved company as though it were raised from the dead, but must be within 6 years of dissolution and you were a shareholder of it.If it refers explicitly to that particular management company, then you can't "reinstate" it. It no longer exists. It's "dead". You can start another management company, perhaps even with a similar name, but it isn't the same company.
If not you need a court order to restore it.
it may cost a few £0,000 (incl fees to Co House etc) depending on who actually does the work required.0
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