The Strain of Self-Managing a Block of Flats

Leaseholders who form a management company to run their own block face significant challenges, particularly in balancing the responsibilities of running the building with the emotional complexities that arise when neighbors are also colleagues within the company.

The Emotional Risks of Self-Management

When the directors of a management company are also leaseholders, personal relationships can cloud decision-making, leading to conflicts and potential failures to act in the best interests of the property.

The Case of Hillcrest: A Conflict of Interests

The example of Hillcrest, a block of 15 luxury flats in St Albans, highlights the tensions that can arise when leaseholder-directors fail to address issues objectively. A dispute over cigarette smoke from one director’s flat led to a failure to repair a ventilation duct, exacerbating the situation.

Legal Recourse and the Role of the Leasehold Valuation Tribunal (LVT)

Faced with the refusal of the management company to address the issue, one leaseholder, Mr. Broad, turned to the Leasehold Valuation Tribunal (LVT) to seek a Court Appointed Manager to oversee the service charge and ensure the management company’s compliance with the lease.

Introducing External Support: The Ringley Group Solution

Mr. Broad suggested the use of The Ringley Group's Leaseholder Support service, which combines professional expertise with the independence of a self-managed company. This allowed the management company to maintain control while gaining the necessary support to handle disputes and legal issues professionally.

Preventing Conflict Through Professional Oversight

By incorporating an external support system like Leaseholder Support, management companies can avoid letting personal conflicts dictate decisions. This system helps leaseholders gain confidence in their management company, fostering better business practices and reducing friction among residents