• Freeholders, be they independent investors or the lessee owned management companies, generally don’t want to spend time on leaseholder issues. They want their legal and contractual obligations to be reliably handled for them whilst optimising the value of their asset.
• Leaseholders want timely response to problems, confidence that their service charge funds are in good hands, simple access to services and comfort that the environment they live in or have invested in will be maintained to a high standard. In addition, they want a harmonious co-existence with fellow lessees and tenants. Most importantly, they want to feel they are receiving value for money from their service charge.

Leaving aside the argument of enfranchisement due to shortening leases, if these utopian conditions are achieved then there is rarely any major discourse and harmony reigns supreme.

….and nowhere is this harmony harder to achieve than in smaller blocks of up to about ten flats.

The dynamics of a small block tend to be much more volatile, largely because the physical and financial contribution of any individual within a small community is proportionately much more influential.

Nevertheless, the managing agent is expected to fulfil the same obligations for a small block as for a large one. However in smaller blocks they loose the benefits of economy of scale and the cost of achieving consensus of client satisfaction is higher. Consequently many managing agents prefer not to take on these smaller blocks.

In smaller blocks where all the lessees tend to know each other, at some level, it is often perceived that they will get better value for money and an improved level of maintenance if they manage the property themselves. So either through mutual agreement with the freeholder or by formally enfranchising the right to manage or even the freehold of the block, they take control of the management and maintenance of the property.

This approach can have many advantages which, in practice, could not be achieved in larger blocks due to larger numbers of lessees. These advantages include:

• Direct control over the expenditure and budgeting.
• Direct control over the maintenance of the property.
• Getting the property to look exactly the way they want it.
• Either, saving the cost of the management charge or, in the case of appointing an agent to act for them, getting the agent they want rather than one appointed by the freeholder….

However, in reality the officers of the new management company frequently do not fully appreciate what is involved when they first become involved. The sorts of issues they face include:

• Managing the service charge accounts, budgeting and paying the bills.
• Finding and coordinating contractors.
• Responding to the requests and desires of individual lessees.
• Compliance with issues such as fire regulations, health and safety, asbestos etc.
• Managing major works – how many lessees know about, or should have to know about, the process of serving Section 20 notices?
• Making sure the building is adequately insured.
• Handling disputes between lessees and neighbours.
• Liabilities and obligations associated with being a company officer and trustee of the service charge account.
• Appointing and dealing with professionals such as surveyors, accountants and solicitors…..

So when those lessees who volunteered to take on the coordination of the self-management have lost sleep, work time and the enjoyment of relaxing in their own home….they may look for assistance to relieve the burden.

So how to break this circle of expectation versus reality?

Bridgeford and Co. Limited, a south coast based block management company, has introduced Bridgeford Online. This is a management support service which uses the communications medium of the internet to deliver professional advice, knowledge, expertise and resources to lessees and officers of RTM or freehold companies who wish to actively manage their own blocks.

This approach is intended to facilitate the benefits of practical self management whilst saving lessees significant costs, compared with traditional full management services, as well as saving time and reducing risks.

Lessees of blocks subscribing to Bridfeford Online will be given access to information and capabilities specifically relating to their property. The service will allow sharing of information between lessees and offer the person responsible for the administration of the service charge the ability to gain practical help and support.

Bridegeford Online offers lessees:

1. Access to general information about their property such as freeholder details, accounting period, and insurance information.

2. An online helpline where they can have questions relating to the management of the block answered by Bridgeford’s professional property managers. Non-confidential questions and answers can be made available to other lessees of that block (and no-one else) so building up a library of practical advice and information.

3. A bulletin board where lessees can contribute and share information and knowledge about the block, planned and ongoing works and other useful information about their environment in general. 

4. Online access to the person responsible for administering the service charge to request information or to ask for works to be undertaken. Obviously, in smaller blocks this may be done by phone or by knocking on the person’s door. But we feel it would be useful for no-resident lessees who are more remote from the situation.

  The person responsible for the service charge can then individually:

1. Send requests for quotes, or work to be undertaken, to appropriate contractors.

2. Access professionals such as surveyors, accountants and solicitors.

3. Request quotes for insurance including building insurance and directors and officers cover….

The service is web and email based but manned by real people with real world experience and expertise. 

Bridgeford Online can be subscribed to online or by contacting Chris Hills, Managing Director Bridgeford & Co Limited, 13 Quay Hill, Lymington, Hampshire SO41 3AR

Tel: 01590 677725 : Fax: 01590 671892 :

Web: http://www.bridgeford.co.uk