Leasehold ‘Ownership’

Lawyers refer to leasehold as a 'legal fiction’.

The legal fiction is this: that it is possible to separate ‘ownership’ of a building and ownership of the land on which it is built .

Physically we cannot separate them. On paper however they can actually be sold to different people.

The freeholder buys the land. The leaseholder only buys a lease in part of the building erected on it. Because it is the freeholder's building, they have the power to:

-engage experts, and charge the leaseholder
-decide on contractors, and charge the leaseholder
-fix administration fees, and charge the leaseholder
-engage a managing agent, and charge the leaseholder

The system is extraordinary, but once it is acknowledged that the building does NOT actually belong to the leaseholder, only the lease belongs to the leaseholder - hence the name ‘leaseholder’- the legal position is then established.

Since 1954 there have been no fewer than sixteen Acts of Parliament attempting to regulate the residential long leasehold system. The seventeenth Act, the latest, is the 2002 Commonhold and Leasehold Reform Act.

We now have more problems than ever with leasehold because these Acts have not fundamentally changed the relationship of the parties. They have attempted to regulate and control the consequences.
 

LEGAL REPRESENTATION

We would ask all residents and owners to please contact a committee member with any queries regarding the Village. It will then be dealt with. Please do not contact our legal representative directly, as this could result in the persons concerned being billed for her time.
Many Thanks

VRA Committee

The following letter has been received by the VRA from a 'concerned' resident:

Dear Residents.

Many of you will have received a leaflet by the RVRA:

“DISASTER STRIKES RESIDENTS”

Some of you may have been amused by its contents, other may have been worried by the implications that “the costs to research and identify the missing £142,490.01 from the 2003 service charge accounts” will be charged to the residents.

Let me put your mind at rest.

The lease and the law, restricts the landlord in what he can charge.

Under the lease (schedule 9) the landlord or the company are entitled to charge the costs and expenses reasonable and properly incurred in the service charges, providing they are necessary for the compliance with its obligations under the terms of the lease on statutory requirements.

To recreate all the accounts records for 2003 and maybe for 2002 in order to investigate the £142,000 (as suggest by the accountants) does not fall into this category.

It is simply a result of negligence and incompetence.

The costs of the £34,854 (not £40,900 as RVRA implied) are not the responsibility of the residential tenants.

Loan.

RVRA are informing residents that a loan by Rowner Estates to the service charge accounts will cost the residents £30,000.

We like the phrase “this will cost £30,000”.

How much this will cost is not to be decided by RVRA, but by the LVT.

If it turns out that the loan was only necessary because funds have been misappropriated in the past , the landlord might not be able to charge anything at all.

CCTV.

We understand this is a new requirement by the Insurance Company.

Other information.

RVRA published on the 30th August 2004 with reference to the meeting dated 27th August 2004:

Andrew Dodds (VRA Vice chairman), complained that money was taken from the service charge  with regards to MR Munches court case and has not yet been returned.

RVRA’s Veronica Jessop explained , if this matter is pushed, the landlord may push to gain back Management Fees that’s were not charged from 1989 – 2000 this being in the region of approximately £500,000.00.

  1. The landlord for this period was focushawk ltd. This company is in liquidation.
  1. A landlord can only recover costs for service charges within a limited time. He has 18 months from the time the costs were incurred. If he fails to claim it within this time he cannot recover it.

OFFICIAL LVT RECORD OF PRE-LVT HELD ON 14 SEPTEMBER

- CLICK ON THE IMAGES TO ENLAGE

14TH SEPTEMBER 2004 - LVT PRELIMINARY HEARING

The prelim of our LVT defence against Rowner Estates was held today. The Chairman was Mr Long and his opening statement was that the whole affair seemed to be a shambles.
Mr Long also picked up on £142,490.01 that appeared to be missing and repeatedly asked where this money was.  Nick Faulkner was unable to answer but said it could be VMC2. And that that would need to be investigated.

Mr Long said that a decision had to be made who will make up the shortfall of the missing money - The Landlord or us and when it was decided  we MUST ensure that it went into the right place. He then went on to say that it may be a long time before the tribunal came to a decision as it was so complicated.

 

Mr Long agreed that as Mr and Munches court case was next month we should defer the hearing but Nick Faulkner did not agree and wanted it fast tracked. But Mr Long said it was to complicated for that.

 

Nick Faulkner stated that New Horizons Management had no bank accounts for the past 15 years. This should be looked into.

 

Linda our legal rep said that we were applying for a manager of our own. Mr Long said that the management fees could possibly be SLIGHTLY higher than at present but at the moment we are paying Labyrinth and Karen Killeen's wages. Also the management company that we met with some months ago told us that they didn't charge such high fees as Labyrinth and that they would put in writing that they would return 50% of  the commission from the insurance. Nor would they charge us  the 20% commission on any agreed works to carried out for that year. So it is very possible that we will be paying less, EITHER WAY at least we will have the works done that we pay for and the knowledge of where our money has been spent.

 

Mr Long also indicated that the divide between the insurance money  and service charge paid by the residents and Caseacre (MBH) would be looked into as at present residents are paying 95% and Caseacre 5%. Considering that Caseacre own the shops and other large areas that we pay to maintain this seems to be in important for the tribunal to examine this.
Mr Long asked Nick Faulkner why Caseacre hadn't been chased for the money owing and also the residents who hadn't paid .Nick replied that this was in hand.
 
THE PRELIM WAS ADJOURNED  FOR FOUR WEEKS AND ANOTHER PRELIM WILL BE HELD THEN.
 
AN EGM WILL BE CALLED IN APPROXIMATELY  FOUR WEEKS TIME. TO DISCUSS THE OUTCOMES OF  THE PRELIMS AND COURT CASE.
 
IT IS IMPORTANT THAT YOU ATTEND AS THIS IS ALL OUR FUTURES AND WE NEED TO ENSURE THAT MONEY WE PAY INTO THE SERVICE CHARGE IS BEING SPENT ON THE ESTATE. 

VRSG MEETING FRIDAY 23RD JULY NIMROD CENTRE

A meeting was held for VRSG members at the Nimrod centre. The meeting was a short one simply updating members on our defence at the forthcoming LVT and to collect the 6th payment. Many thanks to all.

 

VRSG MEETING 25TH JUNE 2004 AT THE NIMROD CENTRE ROWNER 

VRSG Legal Rep Linda informed everyone that she and representatives of the VRA/VRSG had met with Nick Faulkner of Labyrinth that morning.

 

- Nick agreed that we could put  lockable notice boards in each block, this will be funded by the VRA. It will ensure that everyone is aware of what is happening. VRA to get quotes.

- Nick also agreed that Labyrinth would have space on our website to keep residents updated. He will also let us know if any ideas Labyrinth may have about illegally parked cars and the entry of emergency services to the buildings.
- Nick also stated that all local doctors will be given security's mobile numbers to allow them entry if needs be.
- We have asked for extra security keys to be given out freely to people that find it difficult to get up and down stairs, especially those in the high rise who have to go up and down 7 flights of stairs to admit people. These keys would need to be returned once the intercom system is up and running.
- With New Horizons going into liquidation it makes no difference at all to us, as our lease provides for MBH, as freeholder to step in.
- Could letters of complaint sent to Karen also be copied and sent to Labyrinth and VRA that way the situation can be monitored
- The police asked for the removal of the old taxi office so that the CCTV cameras can see more easily. We will be ensuring that we do not pay for this work as it belongs to Rowner Estates and should not to be put on to our service charge.
 
- The fire damaged stairwell in the high blocks has not as yet been painted. The reason being is the asbestos. It will need specialised handling.
 
- Linda is also going to invite Nick Faulkner to walk around the estate with her and see for himself the problems involved.
 
- The office opening hours are Monday to Friday 9am-1pm. Karen will be in the new office. Also one day a week the office will be open 6-30pm-8-30pm. The day has yet to be decided.
The office and mobile numbers will be available.
 
- Ian Lycett from Gosport council apologised to Andrew Dodds for the poor cleaning in the areas cleaned by the council. This will be remedied.
 
- Complaints have been sent in about the state of MBHs flat - it is a continuing eyesore. We  will keep trying to get it remedied.
 
- People were asked to write individually to the Thorngate Trust asking for help for our legal bills.
 
- Andrew showed a graph of our rising service charge and it clearly shows just how much it has risen
 
- Everyone should have received a copy of the 2003 accounts.
 
- After discussions with Nick it shows that we actually have very little in the account, we are unsure how much Caseacre owes. The reserves shown in the accounts are just paperwork. THEY DO NOT EXIST.
 
-In order to cut future VRSG costs the Committee have decided to book the hall for one hour only. Money will be taken at the beginning for the fighting fund, an update will be given and IF POSSIBLE (but NOT compulsory!) it would be appreciated if any questions could be given to a committee member beforehand. These will then be answered and AOB can be kept to a minimum.
 
- As this was a VRSG meeting we have covered only the subjects that are not directly concerned with our tribunal.
 
- Any VRSG member wishing to see a full copy of the minutes can ask a committee member.

- The 5th payment was gladly received from all attendees - thank you