Hopefully I have posted in the right place and maybe someone has some relevant experience of this issue:
We own a freehold house on an estate build in 2006 which has surrounding communal areas. The charges have increased dramatically every year since we moved in 2007.
There seem to be 3 parties involved in the running of the estate:
1) An estate management company, who look after the general running of the estate, gardeners, paths, lamp posts and so on
2) A company, which is a landlord of the communal areas
3) A further company has been set up by the developers, on which when the last plot was sold, each resident was given a share in "Road Name" Company Ltd.
As a simpleton like me it seems a rather convoluted way of setting up an estate, but i understand its now becoming the norm for new estates to be set up in this manner.
The reason this question has come about is that many of the residents are increasingly frustrated with the cost of maintaining the estate which has nearly doubled in the period of 3 years, compounded with a budget shortfall every year, and generally there has been a lack of attention from the management company managing the gardeners well.
While we have been in communication with the Management Company on those matters, would somebody be able to explain in laymans terms how/why the structure is how it is, specifically:
- what role does the landlord of the communal areas play - what is his interest?
- what is the point of "Road Name" Ltd Company, (the one which each resident have a share?) What "powers" does this company have
- who does the management company work for - it is the "Road Name" Ltd Company, or do they work for the landlord who has bought the freehold to the communal areas?
- Can we fire the management company as shareholders in "Road Name" Ltd Company?
- on all residents recieving our 1 share in the "Road Name" Ltd Co, we were asked to nominate or put forward a director - as yet we have not done so due to question marks over liability e.g. accidents, health and safety etc? Should this be a concern?
- Has anyone here successfully cut out the middleman and done it themselves, as approx 50% is a maintenance cost, the other cost is the management company?
Apologies for the questions, there is a lack of info I've been able to find having trawled for 6 months!