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Buying in estate where management company is dissolved

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  • 11-02-2014 12:06am
    #1
    bigblackmug
    Banned (with Prison Access) Posts: 145 ✭✭


    Hi,
    I'm interested in a property in an estate where the management company is dissolved. I can only assume this is because the accounts weren't filed for a number of years.
    The estate is comprised of houses only. There are no duplexes or apartments.
    Is it worth buying in to this estate at any price?
    There are no mortgage issues as I would be paying cash.
    Would there be issues with house insurance?
    Rgds,
    BigBlackMug.


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    #2
    sawdoubters
    Banned (with Prison Access) Posts: 1,288 ✭✭✭sawdoubters


    are they holiday homes

    has the council taken charge of the roads


    check if there is a reference to the management company in the deeds of your house.


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    #3
    Marcusm
    Registered Users Posts: 10,328 ✭✭✭✭Marcusm


    Is it freehold title or leasehold? If the latter and the management company is also the freeholder (or superior leaseholder) the vendor will find it hard to transfer title without it's agreement. When you say dissolved, I imagine you mean struck off for failing to file. Companies which are struck off can be resuscitated (unlike companies which undergo a formal dissolution/liquidation process).


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    #4
    bigblackmug
    Banned (with Prison Access) Posts: 145 ✭✭bigblackmug


    There is a lease document between the management company and former owner of the property. management company is now dissolved.
    I assume management company is struck off.
    estate is only part complete.
    I do not know if roads have been taken in charge.
    I assume they have not been taken in charge.
    The property is an end of terrace townhouse.
    Not holiday home. not s.23. or any other tax scheme.


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    #5
    Mrs OBumble
    Registered Users Posts: 25,957 ✭✭✭✭Mrs OBumble


    Were the development levies for the estate paid?


    Do you have a contact in the council who can find out who you should talk to for the official status of the estate, and the unofficial low-down on it? Get busy on LinkedIn and find someone who can introduce you to someone.


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    #6
    Lantus
    Registered Users Posts: 3,027 ✭✭✭Lantus


    your solicitor may give advice on this. The common areas would of been owned by the company and they would of been responsible for their upkeep and PL Insurance as well probably.

    Your solicitor would normally issue a requisition 37 document which is completed by the directors of the company prior to sale. obviously this cannot happen. The future sale value of your property may be severely affected.

    The local coco may of ben set to take over these areas anyway in which case it wont be as much of an issue (although where are the title deeds to these areas?)

    Get some real advice.


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    #7
    Oral Surgeon
    Registered Users Posts: 3,240 ✭✭✭Oral Surgeon


    Just walk away, life is hard enough without having to deal with stuff like this... A functioning management company is a pain, nevermind one that is dead...


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    #8
    Mrs OBumble
    Registered Users Posts: 25,957 ✭✭✭✭Mrs OBumble


    Oral Surgeon wrote: »
    Just walk away, life is hard enough without having to deal with stuff like this... A functioning management company is a pain, nevermind one that is dead...

    The OP said "Is it worth buying in to this estate at any price?"

    And the answer to this is definitely yes. There is a price point at which the cheapness make the the lack of a MC only a small disadvantage.

    Also, with no apartment blocks and no common walls between buildings, there is potential for it to be not too difficult - provided the roads, sewers and drains are being managed by the council, and you either don't care about the green area being perfectly manicured or are prepared to do the work yourself.


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    #9
    Oral Surgeon
    Registered Users Posts: 3,240 ✭✭✭Oral Surgeon


    Mrs OBumble wrote: »
    The OP said "Is it worth buying in to this estate at any price?"

    And the answer to this is definitely yes. There is a price point at which the cheapness make the the lack of a MC only a small disadvantage.

    Also, with no apartment blocks and no common walls between buildings, there is potential for it to be not too difficult - provided the roads, sewers and drains are being managed by the council, and you either don't care about the green area being perfectly manicured or are prepared to do the work yourself.

    Fair enough but my experience of management companies is that they are generally designed to do as little as possible and bleed as much out of you in the process. If the managment company is gone then there generally is a good reason for this.... I would expect that there is no sink fund to speak of too.... If the managment company is gone, it points to your neighbours being less than interested which is also a worry.... Who is going to set up the new MC if your neighbours are not keen, you yourself?? Who benefits from this?? certainly not you...


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    #10
    Marcusm
    Registered Users Posts: 10,328 ✭✭✭✭Marcusm


    If the estate was completed and had been for a while then I would say push ahead. When there are no apartments or commons internal areas to maintain, the downside can be very limited. If the estate is incomplete, can you be confident that mains services (particularly water and sewerage) are up to code and complete. I would have expected that these would be an area which, if there were problems, would be costly and a significant inconvenience/unliveable. Common areas maintenance/public liability insurance would be other areas for such a management company but those are less significant or can be taken in hand on a voluntary basis. If something goes wrong with the water or sewerage, who has the standing or funding to put it right?


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