No management company on flats

[jaycee401]

In 2007 my brother bought a new build flat. 1 0f 8. the property is leasehold £175 per year and £157 per year for maintenance/service charges. As soon as the flats were sold the builder went bankrupt and so no management company has never been designated to collect any monies. He now wants to remortgage the property but because there is no management company and so no proof can be obtained that no monies are outstanding on charges he cannot complete on his remortgage. He has been in contact with a company who took over the administration of the builder and they were supposed to be organising a management company for the houses but they have and seem very disinterested. It now seems my brother and the owners of the other flats now have unsellable and un-remortgageable properties. The lender my brother is trying to obtain a mortgage with will not consider lending until the matter is resolved, but no-one can tell us how we can resolve it. could the residents set up their own managemn co and if so how do they go about it? any advice would be very much appreciated.

[redcrx]

If they all agree they can set up own company with accounts etc. No separate company would take it on at just £1200 a year, their running costs would be too high

[tonywiltshire]

I suggest your brother looks into setting up his own management company with his fellow leaseholders. Under the 2002 act you have the right to manage and you may find this is the easiest and quickest way to resolve the difficulty. There is a leasehold advice centre, in Surrey I think, 01483 268434.