Private development management company
Discussion
Just looking for some thoughts on this.
Bought a house on a private development some 10 years ago. (we are hopefully moving soon).
The house was two years old at the time and the builders maintained the roads, street lighting , some planted areas on the main road and a little communal area for the apartments in the development.
Cost to us was £22.50 every 6 months.
The builders some time later went into administration, roads and lighting by now was signed off to the council and only the little communal area for the apartments on the development and a tiny bit of frontage of the development along the main road was to be maintained.
Administrators appointed a company to do this, however very few people paid the £22.50 and eventually the company wrote to us to say they were packing it in.
Some months later we now have received a letter from a newly appointed company demanding £95 for the year upfront.
I never minded paying £45 a year until it was just two little bits of ground nowhere near us getting a mow every couple of months but we still paid as well who else was going to do it.
However, £95 is taking the piss for a couple of hours work especially as a majority of the residents are not paying and have not been for years.
Not sure how to proceed but I really don't want to be paying this amount.
One difficulty with small scale management companies is dealing with things like public liability insurance. Having the insurance means that the company cannot file dormant accounts so has to appoint someone to prepare them and do a tax return.
It can be hard to get that done for less than £1000 per year.
I know it sounds a lot but if you make some enquiries it will be clear where the money is going.
It can be hard to get that done for less than £1000 per year.
I know it sounds a lot but if you make some enquiries it will be clear where the money is going.
S3_Graham said:
you need to check your lease to see what you and don't have to pay.
who appointed the managing agent?
The administrators appointed the management company. This is the second company now.who appointed the managing agent?
The deeds of the house state the payment is £45. It would seem that the majority of the residents have not been paying for years especially as most of the development is now signed of to the council.
I suspect the £95 is enough to cover things with those who did pay. That might have back fired.
Time to actually talk to the neighbours for once FFS.
Greendubber said:
I live on a similar estate and its on the deeds that we have to pay but its not a specific account. I'd love to pay 95 quid a year but CP Bigwood are robbing b
ds!
How have your neighbours avoided paying? I know if we dont pay ours the company get heavy with us.
They have just refused and many houses are now rentals. The last company wrote to us to say the majority of residents wouldn't pay. I suppose they can't chase everyone.ds! How have your neighbours avoided paying? I know if we dont pay ours the company get heavy with us.
This is in Northern Ireland we pay rates circa £1400 a year. All road repairs, street lighting, cleansing has all been signed off.
I'll have to have a chat with some neighbours. Don't know many of them now as a lot of the houses are now rentals.
V8A*ndy said:
Greendubber said:
I live on a similar estate and its on the deeds that we have to pay but its not a specific account. I'd love to pay 95 quid a year but CP Bigwood are robbing bds!
How have your neighbours avoided paying? I know if we dont pay ours the company get heavy with us.
They have just refused and many houses are now rentals. The last company wrote to us to say the majority of residents wouldn't pay. I suppose they can't chase everyone.ds! How have your neighbours avoided paying? I know if we dont pay ours the company get heavy with us.
This is in Northern Ireland we pay rates circa £1400 a year. All road repairs, street lighting, cleansing has all been signed off.
I'll have to have a chat with some neighbours. Don't know many of them now as a lot of the houses are now rentals.
Greendubber said:
V8A*ndy said:
Greendubber said:
I live on a similar estate and its on the deeds that we have to pay but its not a specific account. I'd love to pay 95 quid a year but CP Bigwood are robbing bds!
How have your neighbours avoided paying? I know if we dont pay ours the company get heavy with us.
They have just refused and many houses are now rentals. The last company wrote to us to say the majority of residents wouldn't pay. I suppose they can't chase everyone.ds! How have your neighbours avoided paying? I know if we dont pay ours the company get heavy with us.
This is in Northern Ireland we pay rates circa £1400 a year. All road repairs, street lighting, cleansing has all been signed off.
I'll have to have a chat with some neighbours. Don't know many of them now as a lot of the houses are now rentals.
They won't be too pleased when I inform them that my driveway were it meets the footpath was never repaired as promised and I shall be expecting it done ASAP.
I don't mind paying but not double the price.
We used to look after blocks of flats and some private housing estate communal areas etc. Its a pain in the arse. The cost of managing can be the highest cost of all the maintenance/upkeep.
You get individual owners not wanting to pay despite being contracted to pay, you then get AGMs where you have to try and justify what you are doing to just get some grass cut, insurance, on hand for calls and enquires and the funds to do this.
We priced up what we were doing properly and then charged for it. The residents didnt want to pay, so we left. They now are in a similar shoes to what the OP is saying. It often will off put buyers from buying if they realise the management company has no money, is in arrears with collections and no body on the estate ie the owners of the company give a ste.
How many properties are we talking about?
You get individual owners not wanting to pay despite being contracted to pay, you then get AGMs where you have to try and justify what you are doing to just get some grass cut, insurance, on hand for calls and enquires and the funds to do this.
We priced up what we were doing properly and then charged for it. The residents didnt want to pay, so we left. They now are in a similar shoes to what the OP is saying. It often will off put buyers from buying if they realise the management company has no money, is in arrears with collections and no body on the estate ie the owners of the company give a s
te. How many properties are we talking about?
Edited by superlightr on Monday 4th July 15:01
Updating this as it has got interesting and if anyone has been through this I'd appreciate any info.
The management company that recently took over has bailed out as most residents refused to pay the increase from £45 to £95.
A letter was sent stating they (the management company) had taken legal advice and a barrister told them they couldn't increase the charge stated on the deeds.
Now some residents want to do it themselves or the communal areas go to the crown.
I have a bad feeling about this. I know I'm going to be moving soon but I'll still own the property.
Apparently it shall mean changing our deeds and paying more. Some residents have pointed out that this is the very reason they didn't pay the last lot and it's going to lead to some nasty problems between neighbours as they are not going to pay an increase.
I'm not getting involved......
V8A*ndy said:
I'm not getting involved......
The danger is one neighbour decides to take on the estate management themselves and before you know it this Mini Hitler is having a field day.I am witnessing this at the moment and it has put me off ever buying a house which has this kind of arrangement.
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