Management Company in Liquidation/Apartment not selling - big headache

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    Management Company in Liquidation/Apartment not selling - big headache

    Hello I'm hoping that somebody can help with a big headache that is causing my family. We have had many discussions, getting stressed, going round in circles and never really getting anywhere because as you read on, it's complex. I need some experienced bodies!

    My other halves mother (OHM) has lived in a converted farmhouse (5 flats) for aprox 13 years. For the first 2 or 3 years everything was fine. Until the management company went into liquidation - this was around 8 years ago! The so called management company also owns the 2 bottom flats. I've tried doing a bit of research on this guy and it looks like he's had other comapnies that have gone into liquidation previous. I am guessing (although not confirmed) he owns the freehold of the property.

    When this happened I believe other halves mom (OHM) helped set up another management company - this bit is abit hazy because this new company is also linked with the guy who's gone into liquidation. I say hazy because OHM can't remember it clearly. OHM is 60, living alone, working 40 hours a week and this situation has stressed her out for many years. She doesn't understand what the consequences are and that's why I'm hoping to help.

    She is desperate to get out the property and has sold it 3 times - all occasions they have pulled out last minute due to this managment company issue.

    Many people have tried to get information from the liquidation practitioner (apologies if that's not what they're called. The guy whos dealing with the liquidation on Management Companies behalf) over the years he has stopped responding to calls. On the grounds there is a farmhouse (converted) and 3 houses. The only information they have received is that there is a divorce dispute and the case is still ongoing.

    There was a period of time where the 2 bottom flats (owned by Managment Company guy) had eviction notices all over the windows but his daughters would rip them off. Two daughters are still living in the properties.

    When OHM had a new management company bottom flats (daughters) did not pay so this stopped.

    So for several years there has been no management company. OHM and my boyfriend have done the maintenance work themselves out of their own pocket. The other flats are occupied but there's a couple who live in Italy 6 months a year and the flat at the top is rented (unoccupied currently) owned by a guy in Far East. So OHM is pretty much in this big building on her own. The two daughters come only weekends usually to have a party.

    I'm so sorry to ramble!!

    So I guess my question is where does OHM stand? Liquation practitioner adviced her to buy the freehold with the others but then was told by someone else not to. How on earth is she going to sell her flat and what are the implations with the managment company? What should she do?

    #2
    If the freehold was owned by the Man Co it would be under the control of the IP. They are under no obligation to answer purchaser’s presales enquiries in the same way as no freeholder or landlord is.

    It is odd that this situation has persisted for "years" as the IP should sell the freehold, offering it first to the residents, and wind up the affairs of the company. It might be better if the three owners assumed control via Right to manage, or buy the freehold, but be aware that in doing so they are going to be dealing with two flats owned by a person who is unlikely to pay without legal action.

    perhaps its time to put up a "To Let" Board instead?
    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

    Comment


      #3
      Thank you for your feedback. It feels like a right old mess. I'm trying to find out when the company actually went into liquidation but can't see anything concrete. They aren't on the insolvency service register. It all just feels really dodgy!

      I shall look into 'Right to manage' and 'buying the freehold' as you mention thank you. As for the 2 flats downstairs I'm wondering if they had eviction notices if they should even be there at all.

      Really appreciate your advice and will also look at the route of her renting the place somehow.

      Comment


        #4
        What is their status at companies house on the register?

        Have you checked at HMLR to see if the company and the freeholder are one and the same?
        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

        Comment


          #5
          Buy a copy of the freehold title from Land Registry Online ( you may be offered both freehold and leasehold title - choose freehold title under your post code address ) and check name of freeholder and no of leasehold flats under the title.

          Then make a company search for freehold company details at Companies House website ( www.companieshouse.gov.uk) . Look out for last change of company address and if current address is c/o liquidator ?

          Do you know what the total annual ground rent for 5 flats comes to ?

          Comment


            #6
            On company house it states: Liquidation. It has - Mortgage: Number of charges: 26 ( 23 outstanding / 2 satisfied / 1 part satisfied), Wind Up Date:
            23/04/2008

            At lunch I'm going to find out on HMLR if company and freeholder are the same and obtain the freehold title.

            Gordon999 I'm not sure about the annual ground rent, I can ask OHM.

            On Tues OHM had a viewing on he flat and the viewers mentioned the mantenaince cost, OHM expalined the situation (although estate agents had already informed them). It was the viewer who said 'I understand your looking at buying the freehold between you'. OHM just agreed but has no idea about this and it hasn't even been discussed with neighbours. OHM hasn't been offered to buy freehold.

            I'd really like to investigate this for OHM because she's been in this situation for so long and not knowing. I don't know if she needs a solitor but then again I don't think she can afford it.

            Right to manage - I looked up last night and I just don't think she would want that responsibility plus we'd have issues with the 2 bottom flats paying and 2 others that are hardly there.

            Buying the freehold - I'd need to understand more. I'm asuming the houses on the land are also leasehold and they are keen to get this sorted. She might be able to buy the freehold with them?

            Comment


              #7
              Ok so freeholder and managment company are the same people. I'll read it properly tonight but I skimmed down to the leaseholders. and there's 3 for the mews houses. Then leases for flats 3,4 and 5. No leases for the 2 bottom ones, is that because he has the freehold? Liquidator was apporinted in 2008 and I've got the address.

              How can he keep the flats below if he's gone in liquidation? in the 9 months I've been around he's never visited. The one daughter comes most weekends fo parties and the other daughter I've seen twice and drives a big sporty 4x4?? My blood is starting to rise!!

              Comment


                #8
                So flat 1 and 2 are part of the freehold and have not been granted or sold off on lease.

                Unless the new OMC has a contract with the freeholder as agent then they have no authority nor obligation to carry out the freeholder’s obligation under the lease. If that is the case m, then it is a matter of the leaseholders forcing the freeholder, via the liquidator to perform the numerous obligations that they must, to force the issue.

                There are after all two substantial assets and the freehold title to dispose of and I suspect the eviction notices are more to do with the freeholder arguing with the occupants, who may well have occupation and an implied tenancy than a actual one and the obligation to pay the FHer any rent.

                I suggest you pull out the records of who and why this company was set up and consider making it dormant or winding it up.
                Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                Comment


                  #9
                  By new OMC you mean management company? they haven't had a management company for years nor paid any service chargers. I'll have to find out since when. My partner and his mom have done al the work - bulbs, clean all areas, gardening etc. When the second management company came in (also linked to the same man). They pulled out because the 2 bottom flats did not pay anything...

                  It's sounding like he was trying to evict his own daughters then from the property..

                  Should we contact the liquidator again and push?

                  Comment


                    #10
                    Well ok now it sounds like it was not an OMC but in fact two sets of managing agents. In that the case the earlier post does apply as these are agents of the landlord and have contractual duties which they were unable to meet due to non-payment by some.

                    I would certainly push the liquidation agent ( and ascertain their correct status and appointment) and get them to meet their responsibliites. A demand under under section 1 and or 2 will help http://www.legislation.gov.uk/ukpga/1985/70 for the name and address and identity of the landlord will help.
                    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                    Comment

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