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An ambitious project to restore a dilapidated 19th century manor house and set up a social enterprise has stalled after those involved became locked in a dispute over its future.

The freehold of Friday Hill House in Simmons Lane, Chingford, was bought in January last year after company Fortiore won the tender and planned to create a mix of residential and community facilities.

Later the company agreed a deal with developers Atlantic Property Management and created Friday Hil House (FHH) Ltd, but the two parties have now fallen out over the future use of the site.

Fortiore director Mark Wellings stepped down last year as a director of FHH Ltd, claiming Atlantic are pushing ahead with a plan for predominantly residential use.

He said: "I wanted to create a social enterprise offering inter-generational training skills by bringing together older people with young people to teach them practical skills.

"Thirty-three per cent of Fortiores profits would have been recycled back into the social enterprises set up to serve both the community and third sectors."

"But as director, you are liable for everything and that's why I resigned."

The site consists of the grade II listed manor house built in 1840, a stable block and brew house, and approximately two acres of land.

On Friday, Atlantic Property Management submitted a pre-application document to the council which outlines its plans to build six new dwellings, create 12 new flats within the manor house and a community centre.

Director Anastasios Alexandrou of Atlantic Property Management confirmed Mr Wellings had resigned last year but stated there was no litigation case between both parties.

"There is no litigation case between ourselves and Fortiore. There has been a breakdown of communication but we are determined to restore Friday Hill House and we plan to submit a planning application to the council in three weeks time."