Help with Right to Manage
Following yesterday’s Daily Mail article that focused on Peverel Retirement Home customers who are fighting back in the dispute over housing by proceeding with Right to Manage actions to take control of their property management rights.
The article mentioned the Right to Manage Foundation, that helps with the processing of Right to Manage Actions for Leaseholders.
We feel that it’s essential that we promote this website, so that visitors to TheTruthAboutSolitaire can contact them to ask for their help and to understand what the requirements are for RTM. If you do contact them, please let them know that TheTruthAboutSolitaire website had referred them to you.
There are many other ways of removing the property management company and in the last few months, we have read the experiences of TTAS contributors ‘Jon’ and ‘Sheps’ who have managed to remove Solitaire from their developments.
“Jon’s” experience was by removing Solitaire via a Right to Manage process having gained more that 51% of residents support for their removal, although delays had been encountered due to ‘communication’ problems, they are now in control of their development.
The way that “Sheps’” development managed to remove Solitaire, was by gathering the support residents and requesting the landowners “Estates & Management” replace Solitaire, by providing them with sufficient evidence to prove that Solitaire were failing in their duties and that all residents supported this view.
Both of these stories took over six months to get the outcome that they wanted, but it demonstrates that it is possible to remove the property management company and requires the drive of a few individuals to gather the support of other residents and to be persistant.
We are incredibly greatful that both of these contributors have helped us to produce the Essential Guide and that with the support and public awareness of TheTruthAboutSolitaire – they have managed to remove Solitaire.
November 6th, 2009 at 9:39 am
Admin
We too are due to take over on the 25th of November but we are still trying to gain access to sign the accounts off. After an initial polite conversation with our property manager Mr Hughes several issues are still outstanding and after e mailing everyday and calling when I can it is hopeless.
When you call customer services they cannot tell you how the issues are progressing and you cannot speak directly to the property manager. What a waste of time and money!
I would like to ask Jon if their accountant only gained access at the last minute?
Was the communal electricity bill paid up?
Did he accompany the accountant into the inner layer of Solitaire?
Once we are in charge I will produce a bullet point article on how we went about RTM and the pitfalls to avoid, maybe Jon and Sheps could add to this and it could be a permanent feature?
November 6th, 2009 at 1:25 pm
Hi there,
We took a ‘blank slate’ approach to the accounts, after our repeated requests for access were either ignored or met with the response that the accounts were still “being auditted”. We felt that if we waited for access to the accounts we would never have got the RTM rolling.
For the same reason we felt that pursuing a Leasehold Valuation Tribunal was pretty pointless, as the judgements published by the LVT reveal a trend of Solitaire suddenly conjuring up the missing documents and disputed accounts at the last moment. In cases where they are unable to produce documents, the tribunal still appears to give Solitiare the benefit of the doubt and makes only modest reductions. Very few LVT judgements seem to conclusively side with the leaseholders. I think this mostly out of concern that the property manager will simply bump up costs the following year to claw back the costs of the judgement. Besides, teh LVT would not remove Solitaire, which was our promary objective.
So we pressed ahead with RTM despite never seeing the accounts. We worked on the assumption that we had no reserves, and noted the electricity & water readings on the day we took over and informed our new property manager, who in turn informed the utility companies.
Thankfully our development is still quite new and in reasonable nick so we have the luxury of being able to build up reserves again without any decorating or major works on the horizon.
However, we don’t intend to let the issue slide and will be arranging to visit Solitaire to view the accounts and supporting recipts for oursleves. I’m thinking about taking a scanner with me to take copies of everything.
Jon
November 7th, 2009 at 2:24 pm
Jon
Thank you for the info but I know that as of the beginning of this year we had approx £15000 in the accounts and on top of that 80% of residents that is 16 have paid up this year in full at approx £700 each. I therefore have quite an accurate idea of what Solitaire hold.
I recieved an e mail from the customer services saying that our year end accounts are December and they have 6 months after this to sort the accounts out.
This surely cannot be the case as they were given the notice in July and they are illegally with holding money after midnight on the 25th November.
I will be instructing a solicitor
November 17th, 2009 at 1:04 pm
It is worth noting that Estates and Management have, according to Companies House accounts, got at least three of Solitaire’s directors on its board. The two companies are very closely linked.
November 17th, 2009 at 5:17 pm
Nicky Point of View on Accounts and funds
1.I presume however have won the right to mange will have their own Ltd Company formed and bank Account by now.
2.Try to find a bank who gives you free banking. We used Alliance and Leicester and their saving interest was excellent. ( brownie points as the fund will increase in far more interest credited then Peverel ever paid )
3.It usually will take them 6 weeks or so to wind the accounts so it is appropriate to allow that to happen.
4.In the mean time, I would not keep chasing The Ex Management Company but to send your own procedure in writing. First polite letter and then a bit stronger with threat and the procedure of interest and admin charges are going to follow.
5.You are within your right to charge admin cost for non payment of any amount you think is appropriate.
6.You can charge interest on the money they owed to you if not returned within reasonable time.
7.If nothing works send them 2 notices of theft of your funds with threat to take them to court.
8.The way we worked that all the leaseholders were involved in the decision making. We used to send circular what is being proposed with request to contact us if they are not in agreement with in (what you think is appropriate) days. If we do not here from you that be taken as you are in agreement. We will always follow the majority decision.
9.The Law is double edge sward and one needs to know how to use it appropriately.
It worked for us hope it may be useful for you too.
Good Luck
Nicky Vogg
November 18th, 2009 at 3:26 pm
Nicky
Thanks for you help Nicky.
I have just e mailed my manager whose personal e mail I have and I have put several other things in place which I will let you know of after the 25th as I do not want to pre warn these idiots about. I will also do a brief summary of problems we have encountered and how to overcome them incase they are not in the essential guide which I do not have a copy of.
I have had much help from another website again I will inform you of this as of the 26th November.
How do the notice of theft of funds letters work? Is there a template for them?
December 2nd, 2009 at 3:54 pm
Jon
Just to let you know we have finally got or getting somewhere with the handover of funds.
Informed property manager as of 26th Nov he and Solitaire would be named in legal procedings for illegal with holding funds,service charge documents and bank account statements.
Informed property manager and Solitaire solicitors that the police would be informed and handed all documentation/correspondence.
Informed my M.P of the situation with all correspondence forwarded to him.
We then insisted on an account balance and low and behold things started to move. Hoping to recieve a cheque for 90% of account this week and further 10% after account consolidation.
Again once all is complete I will post full details of our trials and tribulations and how to avoid them and get free advice.
December 2nd, 2009 at 4:10 pm
Jon
Sorry also quoted
Section 94 of the Common and Leasehold Reform Act 2002 which provides that where the Right to Manage is acquired there is a duty on:
(a) landlord under a lease of the whole or any part of the premises,
(b) party to such a lease otherwise than a landlord or tenant, or
(c) a manager appointed under Part 2 of the 1987 Act in relation to the premises, or any premises containing or contained in the premises
TO PAY THE ACCURED UNCOMMITED SERVICE CHARGES ON THE DATE OF AQUISTION.
The LVT explains this as follows
Where the landlord has collected service charges in advance but not yet spent them all and is holding the remainder in atrust account, he is under an obligation to hand over all the unspent sims to the RTM company. These will not only include unspent charges but any reserve account or sinking fund. This does not require a notice from the RTM company- the legislation requires the landlord to act and to make a payment to the RTM company equal to those uncommited sums held by him on the aquistion date or “as soon after that date as is reasonably practicable”
The amount to be paid is the sum of:
# monies paid by the leaseholders as service charges; PLUS
# monies invested from service charge payments (and any interest); LESS
#the landlord’s outgoings on the provision of services up to the acquistion date.
I think three months notice iis reasonable practicable to wind things up as long as the property manager informs the accounts department!!!
Hope this helps
Regards
JD
December 10th, 2009 at 5:32 pm
Hi J.D
You are entitled to demand certain amount on account within seven days (?) which is usual practice and any good accountant will agree to that before the accounts are wound down. Peverel have no other expenses that release certain cash for them to hand over.
Make sure you are sending formal letter along with e-mail , also try to include others on the e-mail address and may be useful to send a copy to yourself.
I hope that helps you.
Nicky Vog