Post Collective Enfranchisement
By now you have purchased your share of the freehold either through Collective Enfranchisement, informal purchase or following service by your former freehold owner of a Section 5 Offer Notice.
You will now need to decide whether you and your neighbours wish to manage the property yourselves or appoint Managing Agents. By law, you are still considered leaseholders and are still subject to your Lease even though you are also the freehold owner. Pro-Leagle offers a Managing your Property Pack which you can purchase online
Forming a Residents Association
If you incorporated a Freehold Company in order to purchase your freehold, this company should be in charge of managing your property. However, setting up a formal Residents Association should enable you to divert transactions away from the limited company. This should simplify the accountancy procedures for you.
A Residents Association will also:
- Enable you to obtain a free bank account whereas ordinarily you may have to pay business rate charges.
- Facilitate co-operation in the maintenance, repair and buildings’ insurance cover of the property as all flat-owners can join, regardless of whether they purchased their freehold share.
Pro-Leagle offers a full Residents Association Law Pack which you can purchase online
You should ideally convene a meeting at least twice a year to discuss property management issues with the other flat owners and vote for works to be undertaken.
Effective property management involves requesting and paying service charges each year and possibly maintaining a Reserve Fund. Sometimes, a consultation period is required where the works proposed are over a certain cost.
The most organised way to deal with this requirement is by service of Statutory Notices on the flat-owners. Statutory Notices include a Ground Rent Notice, a Consultation Period Notice, an Intention to Carry out Works Notice and Service Charge Accounts Notice.
Pro-Leagle offers a Statutory Notice Law Pack for use after Collective Enfranchisement which you can purchase online