Help - Management Company driving me mad

[apismalifica]

Bought a flat which is managed by the owners. It is very disorganized, people falling out over money, no sinking fund to speak of and the outside of the building needs serious work before winter. I hope it is safe, which is my first concern, and it has been minuted previously that there are bits falling off and actions agreed but nothing materialized and nothing is being done about it. I have suggested we stop talking about it and get on with doing something about it urgently, have put forward suggestions but there is no money for a survey.The workmen I speak to about this sort of issue all want some sort of payment to come out and take a look even. Anyone point me to where I can find out what I can do to push on with sorting some estimates for repairs and getting work done when others only want complain that its a problem but won't put any money in, clearly expecting a magic bunny to sort it out for them If I pay for an expert or for work to be done will I be able to force the others to share the expense? Getting mighty hacked off with it all.

Honestly? If there are more than 4 flats, get a decent agent in. I'm a property manager and I wouldn't self-manage in a million years, there is just too much in terms of personal liability.

The Mgt Co will be breaching the terms of the lease and their responsibilities to you (the leaseholder) by not maintaining the structure of the building. Are you a director of the mgt co? Or just a shareholder? What's the set up? If you're a director I suggest calling an AGM (your mems and arts probably say that you should have one annually). If you're not, you have two options - either take a civil action against them for not upholding the lease terms, or become a director so you have some decision making sway (then pay a professional company to do it for you, because your liabilities will be much greater as a director).

You can join together with other leaseholders in the block to form a right to manage company which will take away much of the freeholder's ability to prevaricate/overcharge/ignore problems. You only need 50% of the other flat owners to agree - more information here: setting up a RTM company

GrandPooBah, I will at some point be a director, or at least that was the plan when I bought the flat, but not had paperwork go through yet, sounds like it's not a role I want or need now and may decide not to. lalalonglegs, there is already a management company but the paperwork is so disorganized I'm getting concerned it's not going to work. Expect I'm unpopular, as am asking difficult questions, but from my point of view its only about basic safety and leaks in the roof sort things, and what has been spent, money in and out of the account so we can find out what of the many of the works needed can be paid for etc. Looking at the link right now thinking we need to get a proper outside company in so we can get work done even if people don't all agree to pay - basic repairs and safety, roof repairs and so on before more floods! We have had meetings, these have finally started to produce minutes but there seem not to be any older ones kept, and not everyone does what they say they will do between meetings and then they don't turn up or give feedback on any progress. So, thank you both, all thoughts and comments welcome. doing my head in, prefer to get in a proper company to manage the lot for us. x

Ok, you have the right to an independent audit of the accounts if you ask for (and pay for) it, but at the very least you can exercise your right to view any invoices to do with S/C expenditure - put a request in in writing, they have to respond within 30 days.

Did your solicitor get them to complete a pre-sale enquiry pack when you bought? That should have included accounts for the last three years and an up to date balance for your service charge and reserve funds.

If you start your own RTM, then you will have the right to choose the management company and sack the current ones, you will also have the right to collect the money for any work from other owners (or sue them if the money isn't forthcoming).

Lala, the OP said that the block is self managed by lessees. I'm assuming they've set up a Management Company (so, for example, Wuthering Heights Mgt Co Ltd) of which (I presume) each lessee is a shareholder and there are a few nominated directors making the decisions on behalf of the rest of the owners.

If it were a case where there was an incompetent Managing Agent either put in place by an external Freehold owner, or indeed a Freeholder managing in-house incompetently then yes, a Right to Manage action would be the way to go - but it sounds like the owners already have control (or at least some of them do) but they're doing it badly!

I misread - I thought she meant it is managed by the owners [by which she meant freeholder] who couldn't be bothered and let leaseholders complaining that they didn't have money stop them doing anything. I now understand she meant all the leaseholders own a share of freehold.

She still needs to get a critical mass of other share of freeholders together so they can appoint a more rigorous management company but if the other owners don't want it then she's stuck. A management company is unlikely to carry out expensive work if the owners are telling them not to or there isn't a reasonable chance of recovering costs.

If she becomes a director and there are only one or two others, then there's a good chance the OP could sway it in the right direction. You can't get any works done without the cash, the trick is persuading people to part with the money in the first place!

The above seems to grasp the issue . Its totally dire but I am finally a director (so I am covered by liability insurance). Some of us are now on the warpath to get some money in and have some work done on something that is potentially a risk. Getting people to part with their money is the key, there is no money left and we need to pay to get an expert in to assess the situation. It has not been managed competently up to now, but people seem unconcerned, and unaware of their responsibilities, so I don't know if we can change anything if they do all turn out and there is a vote against us.The last three years accounts were very thin, ditto paperwork.

and as soon as we can sort it out we will get an outside management company!

Good stuff!

In the meantime, I strongly suggest you have a nosy around the leasehold advisory website, particularly looking at what you need to put on invoices to make them payable and Section 20 consultation - the LVT doesn't consider a lack of knowledge to be a reasonable defence and if challenged you and the other directors could be liable for a LARGE bill if you haven't complied with S20 - which your D&O insurers won't cover.

Good luck!

Thank you for that last bit - I'll check it out now.

the problem starts when some of the residents do not want to pay for essential things and try and keep the service charge so low that there is never enough money in the kitty so the place falls to bits and they really do not care what it looks like. they would rather not pay.