Management of building

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    Management of building

    Can a leaseholder insist on hiring an external management company to take over accounts and management? The building concerned consists of three flats. Two flats are owned by the two freeholder The 3rd flat is leasehold. Historically the freeholders have managed the annual accounts and repairs and wish to continue to do so. The leaseholder wants this managed externally. Where do the freeholders stand legally?

    Hiring an external management company can be quite expensive if the service charge is shared by only 3 flats.

    Are you charging the 3rd flat more that your own flats ?

    Are you operating to the standard set by the RICS Residential Management Code ?

    What does your lease say about who manages the service charge account ?


      I recommend that you ask the leaseholder for his specific objections and try to address them. He should be allowed a say even though he is a minority.


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