Taking control of RMC. What do I need to know?

[Mr Creosote]

I was hoping someone could provide some advice on this.

I moved into a new-build house on an estate of nine houses a few years ago, and the developer is about to hand over the management company to the residents.

So far we’ve been paying for upkeep of the grounds (about £300 a year per house for grounds maintenance etc.) but once this is complete, we’ll have to manage it ourselves. The estate is basically just a 120-yard long drive with a few lawns, fences and a tree that will require maintenance

I have NO experience of this. It’ll be my first time being a company director (do I get to call myself a powerfully built company director? ). The developer is offering to do all the companies house filings FoC through their solicitors, which I assume is fine but I wondered whether there was any reason why it might be prudent to instruct my own?

Also, once the nine directors have control of the company, what do we do next? Presumably we’ll need public liability insurance, a sinking fund etc.?.

Is there any online guidance as to what we need to do? Can we get a third-party company to manage this all for us, and if so, is that wise?

As you can no doubt tell, I’m completely naïve in such matters, so if anyone has any advice or guidance on this, I’d be most grateful. Thank you in advance!

[rdjohn]

I would suggest you work as a community and do it yourselves.

Start by asking a couple of the residents to act as the managers. Your total income is on £2,700 so paying someone to manage it is not smart. Appointing a single company to manage the grounds need not be onerous.

Do the residents own the Freehold? If not clauses in the lease will probably set out your obligations. You will be obliged to open a bank account, produce simple accounts and maybe some basic insurance cover.

[omniflow]

When I lived in a flat in a mansion block with a share of freehold, the freehold was owned by a limited company and each flat had one share in the limited company. There were 12 flats in the block, so 12 shares in the company.

That company had 2 directors, who were elected by the other residents. Both directors signatures were required for cheques etc. New directors / existing directors re-elected on a periodic basis. I don't see any good reason why you would need 9 (or 12 in my case) directors.

[RizzoTheRat]

For starters have a chat with the rest of the residents about what their skill sets and experience is. A friend of my mothers had similar recently, and one of the residents is a retired solicitor who was happy to do most of the work.