Company for Housing development/communal costs?

Is a limited company the best option for a housing development that need to pay communal costs?

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I have been asked by a client that the new private housing estate (6 houses) is required to set up a company to manage and pay all the communal costs/upkeep charges.

I have heard of residents of a housing estate forming a Ltd company with one member of each household being a shareholder and the shareholders would elect a Director and Secretary - Would this be the best route to go down?

I assume sales would be charges to the residents and then expenses would be the communal upkeep etc and would be run like a normal limited company - is there any benefit to this?

If anyone has done a similar thing for their clients I would appreciate some help/advice on what to do.

Thanks,

Nick

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By bettybobbymeggie
17th Dec 2018 20:20

To be honest I don't think there is any other way than via Ltd company but I am happy to be corrected. A company limited by guarantee isn't a bad idea as this eliminates the faff of share transfers as people move in and out.

There can never be a profit realistically - any surplus funds are either reserved for specific planned work or will be returned to the residents.

Ask HMRC to flag you as dormant for CT purposes so you won't need to do tax returns. Companies House submissions are as for any other Ltd company.

There is a small amount of information here about management companies, but it may be of limited use:

https://www.gov.uk/set-up-property-management-company

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