No management co what happens then?

Help with advice on how our Management Company works. The background info is there are 5 flats. I live abroad and rent mine out to lovely tenants. The other two owners are not willing to do anything to help ever. The final two flats are being sold . MY QUESTION IS REGARDING THIS AS THE CURRENT COUPLE ARE THE DIRECTOR AND SECRETARY OF OUR OWN MANAGEMENT COMPANY. They’re selling up and moving abroad. They say they can’t be involved in any handover to their new owners if they were interested in taking on the roles . We are all Trustees the 5 owners . I’m unable to take on the role ( I’ve tried/ but it’s a complicated USA customs issue prohibiting me) . So the current situation they say is that they’ll inform companies house they’re no longer a management company and this will cause a lot of problems/issues. IS IT NOT POSSIBLE THAT A NEW PURCHASER CAN ALSO TAKE ON THE ROKES WITHIN OUR MANAGEMENT CONPANY TO KEEP THINGS RUNNING SMOOTHLY? We only have Buildings insurance , and Electricity bills going out on direct debits plus getting these accounts into company’s house each year. It’s a very simple role … HELP AND ADVICE PLEASE ON WHETHER THE MANAGEMENT CO( ie the couple selling up are right in saying theyr new buyers can’t take over as they’re not around after the sale to do a handover as moving abroad.??? THANKS IN ADVANCE

I would recommend contacting the Leasehold Advisory Service to see if they can help.

Capitals makes it hard to read.

Have you got contacts details of the new buyers to discuss?

It requires cooperation from the sellers iE the directors of the management limited company. It seems unreasonable they are unwilling to transfer ownership.

You have to know that the buyers are willing to take on responsibility. They could setup a new management company, this would probably be far simpler.

Thanks so much . It’s just a concern that there maybe a short period when the old management company ceases and a new one begins and they say that’ll cause a lot of issues like not being covered by the building insurance and maybe a new cost of setting up? Is that advisory service a click on option in OpenRent? Thanks so much for your reply . Regards Niamh

Normally when the sale happens they sell their shares in thr freehold company. Each flat generally has an equal share in the ownership of the company and the directorship and sec roles can be elected from any of those share holders. If noone is willing to be a director or sec for free then you can pay a company to do this for you. It’ll cost each of you a bit more, but sounds like the sensible option here.
The new owners should have an equal interest as you that the handover does not leave you all without buildings insurance and their solicitor should be seeing that this doesn’t happen. I suggest your solicitor gets in touch with theirs and asks what is the plan. You do need legal advice on this though…find a decent local solicitor that specialises in leases.

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