There’s been lots of lively debates going on recently in regards to Right To Manage and LVT’s, which demonstrates, that finally, residents are starting to fight back against Solitaire / Peverel.
This has co-incided with a homeowner, who had managed to replace Solitaire Property Management and appoint their own chosen local PMC for their development, without going RTM or LVT.
They’ve told us that despite the ‘handover’ taking place last year, the new PMC are still yet to receive all the correct paperwork from Solitaire (electric bills, water bills, etc). What was of particular interest was the fact that the new PMC is unable to source insurance for the development, due to Estates & Management informing the new PMC – that they will be responsible for it.
The figures that the new PMC have had to budget for are scandalous and once again would suggest, that E&M / Consensus Business Group, may possibly be looking to source the insurance through another of their companies, to profit?
The cost of the insurance premiums that Solitaire / Peverel take out on estates, is a hot-topic of itself and is one that is being reviewed / investigated by the FSA.
Apart from the above, the new PMC has raised doubts in regards to the percentages that residents were contributing towards the management fee. In some of the schedules, despite some properties being identical, they weren’t paying a penny and others paying almost double!
From what we understand, based on the Solitaire / Peverel set of accounts, ‘Schedule 1′ – is what all residents should be contributing to equally, as this includes the road / parking spaces / landscape. Therefore, if you have 30 properties, each property should pay 3% of the total of ‘Schedule 1′.
‘Schedule 2′ is usually for communal areas, such as flats that have access via a stairwell. Subject to the number of properties that have this access e.g. 10 properties, each would be paying 10% of the ‘Shedule 2′ total fee.
‘Schedule 3′ – we have found normally relates to properties such as coach houses and town houses that have a car port / garage. This covers the cost of insuring the garage separately and maintenance costs. Therefore, again, if you have 20 properties with garages, each would be paying 5% of Shedule 3.
As an example, we have put the following together based on an estate with 30 properties (10 flats / 20 houses):-
|
Property
Type
|
Shedule 1
Total Cost:
£10,000
|
Schedule 2
Total Cost:
£2,000
|
Shedule 3
Total Cost:
£1,000
|
Projected Yearly
Management Fee
|
| |
|
|
|
|
|
10 Flats
(communal access, no garage)
|
3% of total cost = £333.33
|
10% of total
cost = £ 200
|
|
|
|
20 Houses
(with Garages)
|
3% of total cost = £333.33
|
|
|
|
We recommend that those of you that have received the ‘Yearly Accounts’ view the breakdown of the percentages that each property contributes to, and ensure it matches your lease, because we feel the above goes to demonstrate that, information is clearly wrong and despite residents knowing this and complaining, Solitaire were / are never prepared to find out the facts!
Another piece of information that came as a massive surprise was, that one of the properties at the estate in question owed over £2,500 in management charges dating back to 2007, which was still outstanding. We were shocked by this, considering the fact that Solitaire issue the ‘debt collection / bailiff threats’ to force people to pay, when this was a prime example of when this action should have been taken.
This is a vast amount of money for the management accounts to be down and unless the homeowner in question pays, then who loses out? The residents, because if that £2,500 isn’t available to pay for services at the estate, the jobs don’t get completed, which then results in residents being angry that Solitaire aren’t providing a service, which is because there isn’t any money available to do the job. (Please Note:- TheTruthAboutSolitaire have actually defended Solitaire for once)
Taking some of the above into consideration, we came to the conclusion that Solitaire / Peverel, maybe increasing everyone else’s premiums, to cover the outstanding service charge payments of non-paying residents, without going the legal route with the non-payer and getting the money!
Who knows? But it definitely would make sense why we are seeing drastic increases in maintenance fees?
Over to you all to discuss.