Skip to main content
Posted Tue, 03 Oct 2023 10:46:43 GMT by l white
My son is trying to purchase a Freehold house - title confirms it is freehold. It is a terraced new build linked to 4 other houses - all are freehold.

It looks like at some point someone created a management company - presumably the thinking was it might be helpful where there is shared drainage across plots etc.

BUT - The current sellers have never paid that company anything and they purchased in 2020, And companies house has placed the mgmt company under dissolution (due to nil activity) so technically it doesn't even exist. 

The sticking point is that the title deeds have the management company interest on them - sellers solicitor and son's solicitor cannot seem to agree on best cause of action and the chain is at risk of falling apart. Concern from my son's solicitor is that he will not legally own the whole house with this company on the deeds. Sellers solicitor want to do some sort of covenant which will allow sellers to sell, BUT leaves my son with problem to deal with.

Question - if the management company is dissolved - can the solicitors not just request land registry to remove from register ? all help most welcome thanks 
Posted Tue, 03 Oct 2023 10:54:02 GMT by Adam Hookway
L White - dissolution does not mean that their 'interest' ceases to exist. I'd suggest as a starting point referring to our guidance provided in PG 35
Posted Tue, 03 Oct 2023 11:19:06 GMT by l white
Thank you. In the case of 7.7.4 and request for removal as 'not required' how difficult is that to request and action?
Posted Tue, 03 Oct 2023 12:33:56 GMT by Adam Hookway

L White - the process is easy but you need to demonstrate how it's no longer required. That wouldn't be simply saying the company has been dissolved for example.

Your solicitor(s) need to check the legislation re dissolved companies and what happens re such interests (assets) etc and then decide what action is required and what type of application is then suitable. 

Once they have submitted their application they then need to request expedition to keep the wait time before it is processed to as short a period as possible (generally under 2 weeks). Everything then relies on the supporting evidence provided

Posted Fri, 08 Dec 2023 14:47:46 GMT by Tony Carroll
I have a similar situation. I am trying to sell a freehold property which is part of a terrace of 13 houses. Each house has an allocated parking place in the car park. When I bought the house I had to become a member of a Management Company who would look after the shared car park and access.No costs have been incurred to date.
The management company filed dormant accounts for several years but stopped filing in 2019 and were struck off in 2021. I was not aware of any of this until I have tried to sell the house.
My problem is that in my register of title there is a restriction in favour of the management company that I have to have their approval before a transfer can take place.
The Management Company Directors/ Secretary are not contactable. How do I proceed ?
 
Posted Fri, 08 Dec 2023 15:30:57 GMT by Adam Hookway
Tony - see our PG19 and PG19A for guidance along with PG 35 as well depending on the specific circumstances
Posted Sat, 09 Dec 2023 12:32:50 GMT by Tony Carroll

Adam - thank you for that. Can I just add that the Management Company did not own anything. The dormant accounts filed showed Net Assets of Zero and Zero Reserves. When it was struck off in effect the Crown would receive nothing. In this situation would this be a reason to apply for the restriction to be lifted as no party is now involved, no costs have been incurred and none of the residents of the freehold properties owe any money to the management company.

Posted Sun, 10 Dec 2023 09:17:41 GMT by Adam Hookway
Tony - it's really legal advice you need here to ascertain what interest was originally protected and whether it still exists in law.
From a purely registration perspective you can apply to cancel (lift?) the restriction using form RX3 and providing supporting evidence as appropriate - your legal advice would confirm the required evidence
If you apply to disapply the restriction, using form RX2, you need to provide the information as explained in the PG 19. The restriction would not be removed but would be set aside in effect to allow the specific transaction to proceed and be registered
It's important therefore to follow through on the legal requirements and situation before making an application to ourselves
We can't advise you legally and are limited to explaining how to apply to cancel or disapply a restriction 

You must be signed in to post in this forum.

Sign in