What you probably need is some breathing space and now you appear to have sorted somewhere temporary to live, you now have that luxury. It may be that your proposal to walk away will spur people into action and all the problems can be overcome.
If it is indeed the seller wanting to set up the management company, that likely does not need to be a major problem. Far better there's some form of management than none at all. There seems to be plenty of protection safeguarding your money from being frittered away on unecessary and over priced works.
What you probably need is some breathing space and now you appear to have sorted somewhere temporary to live, you now have that luxury. It may be that your proposal to walk away will spur people into action and all the problems can be overcome.
If it is indeed the seller wanting to set up the management company, that likely does not need to be a major problem. Far better there's some form of management than none at all. There seems to be plenty of protection safeguarding your money from being frittered away on unecessary and over priced works.
Otherwise, plenty more fish in the sea, etc...