Restoring Management Company

Discussion in 'General Property Investment Discussion' started by AnnetteD, Sep 15, 2019.

  1. AnnetteD

    AnnetteD New Member

    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
     
  2. Longterminvestor

    Longterminvestor Administrator

    I am no expert but could you not close the company down again after the restrictions have been lifted and then collectively appoint a management company to look after the common grounds?

    Make these payments part of the lease arrangement?
     
  3. diyhelp

    diyhelp Active Member

    There must be a simple way around this, I can’t believe that you are the only people to find yourself in the situation. Whatever happens, you will need advice from a solicitor.
     
  4. We can all speculate about the best course of action but this is an area which can be fairly complex and I would strongly advise taking legal advice. Even if all tenants club together to pay for this advice.
     
  5. lookinginvest

    lookinginvest Member

    Why would the property developer dissolve the management company? I cannot understand the benefit of doing this.
     
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