PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Relationship between Freeholder and Management Company??

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

Comments

  • G_M
    G_M Posts: 51,977
    Name Dropper First Anniversary Combo Breaker First Post
    Forumite
    edited 18 May 2017 at 7:26PM
    N33D_H3LP wrote: »
    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
    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
  • N33D_H3LP
    N33D_H3LP Posts: 18 Forumite
    G_M wrote: »
    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

    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
    westv Posts: 6,060
    Name Dropper First Post First Anniversary
    Forumite
    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.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards