no maintenance/service company

[jes4697]

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. any advice would be very much appreciated.

[Onlylawsite]

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. any advice would be very much appreciated.

Hi,

The Leaseholders may be able to form their own Management Company.

For more information on this you should contact The Leasehold Advisory Service.
The Leasehold Advisory Service is a Non Departmental Public Body (NDPB) funded by Government to provide free advice on the law affecting residential leasehold property in England and Wales.

They can be contacted on 020 7383 9800, and will be able to give you advice on forming a Management Company and your options generally.