Alternative Methods of Land Transfer

Commuted Sum

This scheme is most appropriate for developments where all the houses have been sold and the developer wishes to divest themselves of any future maintenance or public liabilities. POS Landcare will visit the site to assess the maintenance requirements and potential liabilities. We will then estimate the routine maintenance cost, the cost of repairs required due to fair wear and tear, vandalism or misuse and replacement costs of equipment at the end of its useful life. This will enable us to calculate the future cost of maintenance which we will then commute to a single payment, the Commuted Sum. POSL will purchase the freehold of the land for £1 and the developer will pay the commuted sum upon completion, after which POSL will manage the site maintaining the environment to an agreed standard.

Residents Management Company

This scheme would be most appropriate where there is a Section 106 obligation to transfer the open space into a management company, the purpose of which would be to assume the ownership, management and maintenance of the open space. POS Management Services would form the management company before the completion of the first dwelling with every house purchaser becoming a member as they complete the purchase of their house.

During the construction phase POSMS will be the controlling member and will arrange to keep all residents informed, hold annual general meetings and liaise with the developer to ensure the public open space is laid out to the correct specification and standard.

The developer will layout the public open spaces in the timescales dictated by the Section 106 agreement and when completed to the satisfaction of the local authority will transfer the freehold of the land to the management company. At this stage the management company will appoint POS Landcare to maintain the open spaces for an initial period at an agreed price. POS Landcare will provide the management skills and experience necessary to successfully maintain the open space areas and relieve the members of the responsibility of complying with the approved management plan.

The annual maintenance charge will be agreed between the developer and POSMS and will be fixed for a specified period from the first completion after which it is to be increased in line with an acceptable index or as determined by the management company.

On completion of the development and sale of the last property, POSMS will assist the members to elect a board of controlling members and then resign from the management company. At this stage the residents will have full control and liability for the maintenance of the public open space areas, but will be assisted and advised by POS Landcare for the remainder of the initial period. The appointment of POSL would be automatically renewed unless it was formally terminated by the members.

Private Management Company

On some sites there may not be a planning requirement to form a management company but the developer considers this to be the most appropriate way to provide long term management of the open spaces.

The most appropriate way to achieve this would be for POS Landcare to become the private management company and take ownership, management and maintenance responsibility for the open space.

The developer will layout the public open space and when completed to the satisfaction of the local authority will transfer the freehold of the land to POS Landcare who will provide the management skills and experience necessary to successfully maintain the open space areas to an agreed standard ‘The Maintenance Specification’ and relieve the developer and residents of the responsibility.

The annual maintenance charge will be agreed between the developer and POSL and will be fixed for a specified period, say, the development period, which ensures all purchasers pay the same charge regardless of when they complete the purchase of their house. Thereafter the charge will be increased in line with an acceptable index or as determined by the management company.

POSL will maintain the open space areas funded directly by the residents who will be invoiced by POSL. To ensure payment is made, suitable clauses must be included in the lease obliging residents to make this payment.

Land Management

Whilst the companies’ strength is managing and maintaining a diverse portfolio of ‘owned land’ we also offer a competitive maintenance service where we would take responsibility for the general maintenance on a fixed term contract basis. This would however be far more than a ‘mowing service’ we would adopt the same management principles as if we were land owner, erecting signage to inform residents and tenants that we are responsible for the maintenance and dealing directly with necessary repairs and problems as and when they arise.

This leaves the land owner in full control of his land but relieving him of the day to day management.

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