Hallway, cloakroom, sitting room, living room, kitchen/diner, utility room, master bedroom with en suite shower room, bedroom 2 with en suite, 2 further bedrooms, family bathroom, double garage, gardens
Reference Number 5/15/2950
St Albans District Council 01727 866100
The common parts of Annables i.e. the roads, verges and the village green' are owned by Annables (Management) Company Limited (AMCO). The shareholders of AMCO are the 31 houses on Spring Road, Chamberlaines and The White House on Annables Lane. Each house holds 4 ordinary shares.
The shares give the house owners an equal share in the common land. The shares also give owners access over the strip of land between the road and the house plot (often referred to as a 'ransom strip'). Unlike other company shares which often pay a dividend, shareholders in AMCO are required to pay an annual levy (currently £300) to pay for the upkeep of the estate. AMCO's major expenditure each year is keeping the roads in a good state of repair.
Therefore, please note that the purchaser of the land will need to purchase 4 shares in AMCO. Importantly, no construction can commence until the shares have been acquired. Without the shares, there will be no right of access over ransom strip.
This issuance of new shares was discussed at the AMCO AGM held in June 2016. The Company does have the capacity to issue 4 new shares without the need for an Extraordinary General Meeting.
The proceeds of the share sale will be added to the reserves of AMCO, thereby benefitting all shareholders. It will go some way to compensating the existing shareholders whose share value will diminish by the increase in the number of issued shares and will also go towards future road expenditure. The large and heavy goods vehicles associated with a house build will have a detrimental effect on the roads.
Case law says the price to be attributed to the ransom strip is one-third of the increase in value of the subject land attributable to acquisition of the ransom strip.
The purchaser of the last property to be built on Spring Road in 1980 paid1% of the value of the completed house for the shares. The Board and shareholders believe that a similar price would be fair and reasonable. On completion, AMCO suggest obtaining three professional valuations for the expected sale price of the house and then taking the average figure, to determine the amount payable for the shares.