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@Fox
Sorry to hear about this Sparky. Bit of a nightmare.
Can you clarify something: You're being told to set up a management company? How many flats are there in the building again?
We have a shared freehold with no management company, and we do have a (albeit small) communal area. If there are a small number of flats in the building I don't see why you can't go down this route.