A Classic Example of Peverel’s Tactics
By admin | March 31st, 2010 | Category: Past Articles | 37 commentsThose that are not that familar with the way Peverel Group operate within the Property Management Sector, may be interested to read the following e-mail that we received from a TheTruthAboutSolitaire contributor.
Good afternoon.
Firstly, the website is brilliant – please keep up the good work!!
Secondly… I’m at my wits end with County Estate Management. When I bought my house, naïve first-time buyer as I was, the PMC was Peverel. They became Peverel OM. Then I was told that Peverel OM had been sacked and CEM brought it. Recently, a letter saying that because of problems with CEM, we were being moved within the group to another company…when I call, it’s the same company, the same people…and the same shower of…well, you get my drift.
What can be done? Can one “opt out” of being part of the managed (HAH!) service? They don’t do anything for me or my home. I live in a maisonette, part of a terraced block, not a managed/cleaned block of flats. Every year, price increases and a pack of lies in place of accounts – and not of the things on that list has actually been done!
Basically, I’m happy to add fuel to the fire, do more, kick off more… what can I do to help?
This is a classic example of Peverel giving the impression that they are replacing a failing company, with a completely new one, when in fact they are all part of the same group.
Something similar happened to residents that had Solitaire Property Management appointed as their PMC and then this time last year, Peverel wrote to us all to advise they’d taken over the SPM brand…. those ‘not in the know’ – would have believed that Peverel were a completely different company that wasn’t associated with SPM… WRONG!
Our advice for anyone that receives correspondence from Peverel OM / CEM or Solitaire Property Management, that says a new PMC is being appointed, because it will be an associated company (probably listed on ‘the companies’ link at the top of this page)
Admin
Who is the freeholder / landlord on the development that you have highlighted above?
I would love to see the lease.
My tripartite lease has Peverel OM “written in” as the all powerful Manager that cannot be removed until the expiry of 5 years from the initial sale by the developer of the last apartment on site. They wield so much power that I am surprised that I am not paying an “admin fee” every time I put the kettle on!
As a consequence of what is stated above, it is not legally possible (unless a variation of the lease tales place) to remove the Manager with another unless the replacement manager is legally connected with Peverel OM.
Whilst the terrible maintenance service and the mysterious budgets and service charge increases are the irritants that get leaseholders taking action and accessing sites like TTAS, it is the details in the lease that are of overriding importance in all these cases.
O.K. – so the six months has elapsed from our year end and Solitaire has failed to provide audited accounts – this despite a recent email to L.M. highlighting the issue and formally requesting theses accounts in the prescribed manner.
The mail was responded to, advising that L.M. would ascertain the status of the production of accounts – to no avail and with no further communication.
So what do we do next – particularly if solitaire has now committed a criminal offence?
The target date to rid ourselves of this scum is the 30th April – when a local P.M. is scheduled to take over.
Advice welcome please!
Saxon Hero. We are still waiting for our March 09 year end accounts. (So don’t hold your breath waiting). We received a letter about 6 months ago stating that expenditure had been incurred, but would not be billed within the 6 months of year end required by law, therefore they were giving us notice that at some point in the future we would be billed. (I think this is the way Solitaire get around breaking the law. So check first to see if anyone has received a letter). We have no idea when they are going to give us a final set of accounts, although interestingly they did tell us how much we would have to pay. (About 33% extra on top of our yearly management fee). We are also waiting for the 6 months management charge that is for the period starting 1st April 10. Now as that is tomorrow and no one on our estate has received a bill I can only assume that everyone on our development is going to being paying late. It really is a joke and shows how bad a state the accounts department is in at Solitaire towers. Andy as you claim to read every post perhaps you can explain why it takes so long for invoices to be raised and accounts audited! I work in finance for a multi billion $ company and we have our accounts audited and approved less than 3 months after year end
SaxonHero,
Are you bringing in a local PM as part of your RTM? If so, was your target date of acquistio of 30th April stated in your Claim Notice to Solitaire?
Your new PM will need to liaise over the transfer of funds and other documentation relating to your acquisition of the legal right to manage your block/site.
Did you use the services of a solicitor in the RTM or did you do it yourselves? If you used a solicitor I am surpised that they ahve not also being in correspondence with Solitiare regarding the acquisition of the management of your development
Anon and Archangel
The situation we are in appears somewhat unusual.
After 10 years of solitaire, technically Solitaire has ‘withdrawn’ from our development and will in effect pass over via E&M the management to a local, leaseholder specified P.M company.
That woman at E&M was told in no uncertain terms that we will just go RTM in any regard if there is any attempt at any funny business and she will have to repeat the process.
This is not a based on a fairy tale but actually appears to happening and confirmed in writing by all parties and has been achieved by making Solitaire/Pev’s life (at a very senior level) as miserable as that of the leaseholders – there is more put I will not prejudice third party proceedings by spelling out in open forum.
Yes you are correct that the incoming manager should undertake all this kind of activity -but we are assisting in facilitating a transition which we know will be made as difficult as possible in any regard.
So hence my question re accounts and yes, we have had a recent letter in regard to indications of cost as ANON has also experienced – but surly Section 21 is the law in regard to the production of audited accounts and what do we do if we don’t get such within the legally prescribed time scale? What indeed should ANON now be doing in what appear to be similar circumstances?
We want the audited accounts to then examine the last 12 months invoices and payments etc. as entitled.
hope this puts in to context where we come from. – Thanks
SaxonHero,
Thanks for that additional info; I apreciate the situation you are in regarding confidentiality and data protection.
I would love to see your lease! Sounds to me as if a CBG company owns your freehold and is your landlord? (After all, it was the freeholds that VT was after when he bought Solitaire) This is what I refer to as the “double disadvantage”, but – with time – it can be overcome.
If Solitaire have agreed to this action and they have agreed to the new local PM of the leaseholders’ choice, I cannot see what Solitaire have to gain by “being awkward” and dragging their feet?
Without further specific information there is not much else I can add to assist, but I am surprised that, after 10 years, you have not decided to take that further step and go RTM and then try to buy the freehold through Collective Enfranchisment?
SaxonHero – if Solitaire have now (allegedly) committed a criminal offence by not providing you with year-end audited accounts within the designated 6 month period, then you should look at taking further action.
And if it is indeed a criminal offence (can somebody confirm this…???), then that surely means the police should be involved…??? Criminal act = police involvement…??? Or if not, then the local Trading Standards department at your Local Authority. Or perhaps the Financial Services Authority…??? Or all three…???
Perhaps your situation – again stressing if a criminal offence has now (allegedly) been committed – is the one to use as a high-profile example of what goes on (or rather, doesn’t go on….) in the world of Solitaire.
Can you image the squirming that would ensue in the accounts department at Peverel Towers (and the boardroom…), if the Boys In Blue came a-calling, especially if they had the FSA with them…???
Double-check on what rules they have broken, and then start calling the appropriate authorities.
This issue with accounts is an on going issue and I think we need some legal advice on how Solitaire get away with it.
You may want to try http://www.landlordzone.co.uk or maybe Anon could ask for some advice from the solicitor he used for RTM. Or maybe she could point us in the direction of someone who could help?
One for Admin, do we have a fund for solicitors advice or could we start one?
Archangel
Yes you have got it in one CBG has it all.
The point about heel dragging is a simple one – if you enter the mind set of scam. The longer it takes to transition to the new P.M. company then the longer Solitaire think they can bill for ‘Service’ Charges – simple really. Imagine if people pay up another half year if (as it does!) fall due mid transition process! When would you get the money back after the event!!
The question re freehold is valid – but getting everybody on side in a mixed owner occupier and rented development is a struggle in some circumstances.
As usual the task of getting this far, whilst with the majority agreement, falls on the shoulders of very few, We have no residents association.
Dear All
Maybe this will help from the Leasehold Advisory Service
Summary of service charges accounts
Leaseholders have a statutory right to seek a summary of the service charge account from the landlord under section 21 of the Landlord and Tenant Act 1985. The request must be in writing and can be sent direct to the landlord or to the managing agent. It can require a summary of the ‘relevant costs in relating to the service charges payable’ in respect of the last accounting year, or where accounts are not kept by accounting years, the past 12 months preceding the request.
Where a landlord has received such a demand he must provide the summary within one month (or within six months of the end of the 12-month accounting period, whichever is the later).
The summary should show:
how the costs relate to the service charge demand, or if they will be included in a later demand;
any items for which the landlord did not receive a demand for payment during the accounting period;
any items for which a demand was received and for which no payment was made during the accounting period;
any items for which a demand was received and for which payment was made during the accounting period; and
whether any of the costs relate to works for which an improvement grant has been or is to be paid.
Where the service charge is payable by the leaseholders of more than four dwellings, the summary must be certified by a qualified accountant as a fair summary and sufficiently supported by accounts, receipts and other documents produced to the accountant. Where the landlord is a public sector body, one of their officers who is a qualified accountant may certify the summary, but otherwise the accountant must be independent of your landlord.
Rights to further information (inspecting accounts and receipts)
As well as receiving the summary, the leaseholder has the right under section 22 of the Landlord and Tenant Act 1985 to inspect documents relating to his service charge as a follow-up to provide more detail on the summary. Within a period of six months from receipt of the summary, the service charge payer (or the secretary of a recognised tenants’ association) may write to the landlord requiring him to allow access to and inspection of the accounts, receipts and any other documents relevant to the service charge information in the summary and to provide facilities for them to be copied.
Facilities for inspection must be provided within one month of the request, and must be available for a period of two months.
There are further rights of investigation of service charges and management provided by the right to a management audit under the Leasehold Reform Act 1993 and the right to appoint a surveyor under the Housing Act 1996. Full details of those rights are set out in our leaflet ‘Appointment of a Surveyor, Management Audits’.
Failure to provide a summary or allow access to further information
Where a landlord fails without reasonable excuse to comply with either a request for a summary or to inspect supporting documents they commit a summary offence on conviction and are liable for a fine of up to £2,500 (level 4 on the standard scale). The local housing authority has the power to bring proceedings, or they can be brought by the leaseholder. Local authorities are exempt from prosecution.
My County property is moved to Consort, same company to same company….. Same service. Have Peverel / CBG made changes because they are worried about image? Group business loss? These changes are worrying to anyone who has property in this company because ultimately has the top management changed as well? You can get rid of names all day long but if the management stays the same then we will get same poor service, charges and lack of accounts.
Worth – exactly.
They can create new companies with new names, re-brand existing ones (with subtle name changes) etc, etc. But at the end of the day they are all basically one-in-the-same company. And with the same levels of service…..
Jon Dyson,
Ref your comment of 31 March and reference to the LandlordZone. I looked it up and found an interesting comment about David Cameron and his Early Day Motion in the House of Commons calling for the revocation of of an order that is introducing changes to the definition of ‘houses in multiple occupation’. It’s a pity (and a vote loser) Mr C cannot show some support for leaseholders (including the more vulnerable represented by CARLEX) who are currently held hostage and are being bled dry by the unscruplous Management companies that we listed on this site.
Apparenetly the RLA (Residential Landlords Association) have a No 10 petition, too – they managed to get 1,200 signatures n 24 hours!
They also have a campaign to send a strong message to election candidates.
Worth,
What are you going to do about it?
I have contacted Trading Standards,Arma, Companies House, all with regards to the lack of notice, late accounts and the game of chess that Peverel / CBG seem to be playing with their companies.
Trading Standards – need 3 or more complaints to raise a query directly with Peverel, Luton office would be best because they cover Peverel, Solitaire, Consort, ex County Estates Management, more than 3 complaints is taken very seriously, does anyone else want to complain about Peverel / CBG?
ARMA – are they paid a members fee by Peverel / CBG? Does anyone know? If they do then they possibly could show a bias.
Comapnies House – I have made an enquiry and asked for feedback on the legal position that Peverel / CBG have in regards to company chess.
Saxon Hero,
I would follow Jon Dyson’s comment from the Leasehold Advisory Service –
“Leaseholders have a statutory right to seek a summary of the service charge account from the landlord under section 21 of the Landlord and Tenant Act 1985. The request must be in writing and can be sent direct to the landlord or to the managing agent.”
Write a formal letter, not email, and send it to your property/estate manager and your freeholder. Send them ‘Signed For’-the old recorded delivery. That way you will get proof of delivery as the PO gives you a tracking number by which you can access the Royal Mail website. If they still have not produced the Accounts in one month then you have a case and clear evidence, although I’m not sure how you enforce it at that point.
After a bit of thought, company chess can also happen because a membership might be under threat due to poor service by one business within a group structure. One way to not loose that membership would be to merge your customers into another company within the same group and get rid of the failing company. I will contact Peverel / CBG main membership body, ARMA on tuesday and ask if any of the Peverel/CBG group’s membership is under threat due to poor service.
Neil, Worth and ANON,
Many thanks your comments – I have indeed sent formal request for accounts in writing, with the statutory wording, in addition to email copy, ‘first class and singed for’ direct to L.M. the Group Managing Director, at the Pev./Sol. H.Q. – 29/03/2010.
The six month period from our development’s year end expired 31/03/2010.
As alluded to previously, they have attempted to fob off with an unsigned ‘gobbledygook’ letter dated the 22/03.2010 quoting S20b(2) of Landlord and Tenant – giving an unaudited summary which could be subject to change… etc –I do not believe that this supersedes section 21 which is clear in any regard? I think this may be that which ANON has been fobbed off with?
Trading standards Luton appears the place to go then – I suggest that as many developments as are able respond (ANON –you are in this position) in a similar manner and leave T.S. in no uncertain mind as to what we are dealing with here forcing as appropriate a penalty.
As regards ARMA – check out who the current Financial Officer/Committee member is – G.F. is still on the payroll at Peverel and was signing himself as Head of Compliance in August last year (2009) on a personal, Peverel letter to me subsequent to a meeting with me, which needless to say served only to waste my time – I assured him then that this was merely the start and not the finish of the issue, but to no avail.
Why not contact G.F. at ARMA asking him what the process is to complain about /senture Peverel et al? !!!!!!
SaxonHero and others,
The LEASE conference on 13th May has Gerry Fox, representing Peverel and ARMA, as one of the main speakers, along with The Master of the Rolls and Chainbow (Roger Southern).
With regard to Landlords / Managing Agents failing to provide service charge accounts – may I refer you to the comment made by Nigel Wilkins, the Chair of CARL (Campaign against Residential Leasehold) to the post on the CARLEX site about their attendnace at the LEASE Conference (link on the right). But to save you time, this is what he says “…..Master of the Rolls, has an interesting past. Some years ago, he lost his case defending my landlord against prosecution for failing to provide service charge accounts” (Source of quoteacknowledged as Nigel Wilkins, Chair, CARL, on CARLEX website on 02/04/10.
It costs over £350 to attend the Lease conference – maybe TTAS should hold a demo outsdie the venue?
ON TRADING STANDARDS
Worth it is an excellent idea to apply at their home town. Could you please print the Luton Office address here so, others may follow? If you have contact name to refer that will be excellent.
I believe if one files a complaint even with Trading standard and the Company changes their name than Trading standards will drop the case as it happen to me. The rouge trader carried on working under different name and no one could touch him.
I am wondering if TTAS starts another tag for so the Luton office can receive more then 3 to start the ball rolling. To also include or separate how to serve 2 Final Notices, down load 2 standard notices templates and Application Form as listed below? Perhaps you may decide to charge as I feel you need to earn more money for the services you are providing.
ON LEGAL FORMAT TO DEAMND SERVICE or ……OR ACTION WILL BE TAKEN….
Please note I have no qualifications but only life experiences and any contribution will be appreciated to refine and define to make it perfect to win and win.
After exhausting all the avenues then must go serve finial 2 legal notices. To make PMC accountable
1.14 days notice stating.
a) What is the problem, cause etc( just give brief details)
b) What acts or clauses etc are they in breach of ?
c) What are you going to do if they do not comply?
It is useful to write such as below,
We hereby give you 14 days notice from the date of this letter to ….. …………………………….(.state what are you going to do like) we will take court action or apply for order to disclose full accounts or ……and so forth.
Please see my letter 14th of Mrach 2009 (“Peverel / Solitaire’s MD – Lee Middleburgh” August tag that may assist you.)
2.7 day notice
If nothing happens then follow such as .
We hereby give you 7 days notice from the date of this letter to because ……..( only need sentence or two here) We will take court action or apply for order to disclose full accounts or ……and so forth.
I would put on the top of the letter in red Final Notice.
ON DISCLOSURE OF ACCOUNTS
After serving 2 notices, one can apply for order directly to disclose full accounts.
It requires filling a simple Application form which may be N244 Application Notice (05.08) ( do check for accuracy if that is the right form as I know one can serve them and I will also search further and let you know.)
I have been told It is a very brief court appearing in front of the magistrate which can be granted in 2 weeks.
We need the law tested with accounts.
If someone lives around Essex, London and (M25 belt) if they think I will be assistance then do contact me through Admin.
Thanks for your comments, LUTON Trading Standards contact details are below;
I have a contact name; Stephen Dibble.
Stephen.dibble@luton.gov.uk
01582 547110
Trading Standards Service
Clemitson House, 44-48 Gordon Street, Luton, LU1 2QP
Tel: 01582 54 72 62
Minicom: 08451 28 13 84
tradingstandards@luton.gov.uk
Worth,
Many thanks for this I shall certainly contact without delay, as I hope will others and we can put some serious third party momentum behind this issue.
Thank you Worth.
Big white chief, we know what card you are holding and bluffing
just is not wise move. Each time your staff is doing it which is
landing your Company name going deeper and deeper.
Your Company must awnser my questions or…….?????????
What is going to be play to the end as your stake is your Company
against what I have in my peggy bank.
Are you accpting my challenge?
Firstly Admin, thanks for publishing my email! I was quite surprised to see it (and a bit annoyed with myself for the terrible typos!).
I’m at my wits end with them, honestly. Happy to do what I can re complaints, as I’ve asked for a written statement of accounts each year with no response. Also, on another matter I’m told that CEM aren’t my PMC at all and there’s another company…this one are listed on Companies House at a bogus address with no working phone numbers and I can’t track down who they are or where…more news as I get it, as I suspect it’s another subsidiary.
Archangel, in response to your question (Who is the freeholder / landlord on the development that you have highlighted above?), it’s Berkeley Homes. I’ve tried, but they have no interest in returning my calls or letters with regard to this lot.
Welcome to the club…. we’ve just had County Estate Management replaced with OM Property Management. They even admit in their letter that it’s a sister company. We’ve gone RTM anyway, be rid of the lot of them.
Ah…we dream of going RTM! Sadly though, it doesn’t seem to be an option as we’re a mixture of houses and flat blocks and no-one seems to know exactly what area the contract covers!
Anon and FedUp and others – there are ways around the situations you are in. The bottom line is that you need to work with a good solicitor who will help you follow the law and get the outcome you want – RTM. It is possible, it will take 4-6 months and it will cost. But at the end of the day, the investment will be worthwhile – you will get control of your home and your major financial asset, peace of mind and hopefully the type of management you want. Good luck!
I have been living in my property for about 18 months and have not received any contact or bill from Peverall OM or whatever they call themselves.
Am I ok just to keep quiet?
Should I expect a huge bill?
@Matt – in answer to your 2 questions:
A1: Yes – As far as I know Service Charges are not payable until demanded and need to be demanded ‘properly‘
A2: After reading this web site what do you think? YES without doubt!
My recent invoices have actually been headed “Application for payment”. In which case, could we just respond along the lines of “sorry, but your application has been un-successful on this occasion…”???
@Matt H – sounds like a good plan to me!
Matt,
An application for service charges is strictly time limited.
To cover yourself, i would email OM reminding them they have not sent an invoice, you cannot pay without an invoice and unless you receive the invoice in due time you have no liability to pay.
If you look at a previous post you will see that a bill for possible future charges was sent out. This was explained as a legal move incase of future charges. In other words Om had to comply with the law.
So do not worry. By doing what i have suggested no one would ever be able to make you pay.
It would be nice if you could paint OM into a corner! I do like a MATT FINISH!
Matt,
Service charges must be demanded within 18 months of being incurred [Landlord & Tenant Act 1985 S20B (1)]. Alternatively within 18 months the tenant must be notified in writing that costs have been incurred, the tenant’s share, and that he/she will be required to pay [LTA 1985 S20B (2)]. If the demand is not made within 18 months then the tenant is not liable to pay.
dear all
solitaire.peveral om ,,,,,,,,,,,,,,,,,,whatever
who ever down right dispicable
by the way on a reputable website i found that Solitaire have ccjs UNSATISFIED COMING OUT OF THEIR EARS IF THIS ISNT A CLUE TO WHAT AND WHO THEY ARE THEN I DONT KNOW WHAT IS
Sounds like I am best to keep quiet til the 18 month point and then email them?!
I really don’t understand why they havent billed me. Are they that useless?!
Yes Matt – they are useless. Not sure the customer services people speak to the accounts people, and the systems are automated to do what they like. I have been warning them for over a year that I didn’t receive a correct demand.
At the end of the day it is your estate which suffers if money isn’t collected and spent. And you are under an obligation, either under the lease or leasehold law, to pay your share of service charges even if there have been billing problems. But if they fail to produce accounts or demands, despite this being raised, then after 18 months it is fair enough.
Seems Peverall have finally pulled their finger out and sent me a bill after living in the property for 2 years now.
they are trying to bill me for these periods:
1 Jun 2010 to 30 Nov 2010 £310.06
1 Dec 2010 to 31 May 2010 £310.06
1 Jun 2011 to 30 Nov 2011 £310.06
Am I right in thinking that as they took so long that I do not have to pay anything except from the present day onward??