Residents Management Company Dissolved - What Next?
In 2020 Aspire Block and Estate Management Limited were contacted by Homeowners for a residential development in Buckinghamshire comprising a mixture of leasehold flats and freehold houses with the development being constructed several years prior.
Homeowners were frustrated by the lack of Management.
Initially, Aspire Block and Estate Management Limited carried out a free of charge, no obligation review of Leases and Transfer Deeds for the development.
Upon review we identified that there was in fact a Residents Management Company included as a party under the Lease/Transfer Deed which was to be transferred to Homeowners by the Developer following completion of the last property sale.
Fast-forward several years from completion of the last property sale and the Residents Management Company had not been transferred, no Shares issued to Homeowners and upon further investigation it become apparent that the Residents Management Company had been allowed to be struck-off and dissolved at Companies House.
In addition, no repairs, maintenance nor insurance was being carried out which had since reverted to the Developer as they had retained the freehold of the flats and external common parts.
Aspire Block and Estate Management Limited advised Homeowners of the options available to them which included in no particular order, an application to the First Tier Tribunal (Property Chamber) for the Appointment of a Manager, exercising the statutory right of Right to Manage, exercising the statutory right of Collective Enfranchisement and lastly applying for reinstatement of the Residents Management Company known as Administrative Restoration. All options had a varying degree of criteria, associated costs and implications.
Through our knowledge and experience we were able to identify and advise Homeowners that the reinstatement of the Residents Management Company would be by far the most practical and effective solution benefiting the development as a whole. Fortunately, the Residents Management Company had been dissolved in the last six years and was trading at the time it was dissolved.
Whilst Right to Manage and Collective Enfranchisement were viable options for Leaseholders, these would not have benefited the owners of freehold houses nor resulted in a practical solution for the wider development which all the houses and flats ultimately formed part of.
In 2021 Homeowners agreed that reinstatement of the Residents Management Company was the route they wished to proceed with. Aspire Block and Estate Management Limited then set about making this happen which included a lot of correspondence with the Developers Solicitor.
The formality of reinstating the Residents Management Company involved supplying Companies House with an application for administrative restoration, a cheque for £100.00, preparation and filling of all outstanding Companies House documents.
If the freehold of the flats and external communal areas had been transferred to the Residents Management Company following completion of the last property sale which is sometimes the case on new build developments, then a waiver letter from Bona Vacantia would have had to off been included as part of the application to Companies House.
Once Companies House reinstated the Residents Management Company, Aspire Block and Estate Management Limited were provided the Companies House Authentication Code. It was then plain sailing from thereon out with Homeowners being appointed as Directors of the Residents Management Company, the transfer of Shares and issuing of Share Certificates.
The Developer settled all associated Companies House fees and penalties which was a further bonus to Homeowners. Ultimately, it cost Homeowners nothing to regain control of their development!.
· Full Lease and Transfer Deed Review
· Meetings with Homeowners to discuss options available and process of appointing a
· Liaising with Developers Solicitor to administer handing over of Residents
Management Company which included appointing Homeowner Directors, Share
transfers and issuing of Share Certificates etc
· Preparation of annual Service & Rent Charge Budget in liaison with Homeowners
· Immediate placing of buildings and public liability insurance policies as none were in
place which could have potentially had far reaching consequences
· Cost Reinstatement Valuation carried out at no charge to ensure adequate insurance
· Placement of service contracts (as applicable)
· Arranging conduction of statutory assessments to comply with legislation
· Lease and Transfer Deed compliance
· Continuing management
At no point did Aspire Block and Estate Management Limited charge for any advice, meetings, nor administrating the handover of the Management Company. The only fees levied to the development are those annual management fees included within the Service & Rent Charge Budget.
We are very happy to have been able to assist Homeowners in regaining control of their development protecting the value of their assets.
We were even able to assist one Homeowner in providing a certificate lifting the restriction in the Title Register following their property purchase over a year earlier. This enabled their purchase of the property to be registered at Land Registry.
If you find yourself in a similar situation or just want to discuss your management options, then please do not hesitate to contact us on 01923 372169 or email email@example.com for a free no obligation chat.