Estate management company

[LeeHayler]

Hello folks

I was wondering if anyone would have some expertise regarding some questions about an estate management company who have taken over the new build estate i live on? Im here on behalf of the whole estate actually.
If so i can post some questions from residents who have concerns about conflict of interest within the management company and other concerns.

Thank you

 

[fisicx]

You can ask the questions here.

This is also a good place to get help:

https://forums.landlordzone.co.uk/home

 

[LeeHayler]

Some questions

Can we withhold payment until such time as we are fully aware what we are paying for with the service charge ?

We have concerns about a potential conflict of interest around Susan Schofield , Director at VISTRY , being a director on the Spinnaker Residents Westbury Management Company

We are concerned that none of us were aware that the residents management company was being formed and should we have been ?

We are concerned that we are struggling to get a copy of the “ handover document “ which confirms when VISTRY transferred management of the estate to REMUS & the Residents Management Company …. Surely there should be a legal document for this ?

 

[Mark T Jones]

You can ask the questions here.

This is also a good place to get help:

https://forums.landlordzone.co.uk/home

Follow this advice

 

[fisicx]

If you withhold payment you will be in breach of your lease and may be liable for forfeit.

The residents need to pay a solicitor to properly advise on matters. It is quite likely due process was not followed and there is a conflict of interest but only a solicitor with access to all the relevant documents will be able to help.

Depending on how intransigent the new management company this could get very expensive.

 

[WaveJumper]

1, Follow the link given above
2, What was the full name of the last management company ?
3, Yes you may well need legal advice

 

[fisicx]

@LeeHayler - as a new build, is this commonhold property? If so the residents themselves are the management company.

 

[WaveJumper]

Things a bit mad here at the moment on the screens, but a quick look shows a lot of dormant companies so be interested to know a bit more detail for a proper look later ....... and with the word Spinnaker in the name raises my interest

 

[LeeHayler]

If you withhold payment you will be in breach of your lease and may be liable for forfeit.

The residents need to pay a solicitor to properly advise on matters. It is quite likely due process was not followed and there is a conflict of interest but only a solicitor with access to all the relevant documents will be able to help.

Depending on how intransigent the new management company this could get very expensive.

This is exactly whats happening. Were all being asked to pay for services which have not yet started. We also have different handover dates. The developer is saying one date, and the management company is saying another. Weve also not been showed any documentation about the handover. I get were bound by the TP1 agreement but we are meant to see where our money is going and weve had nothing apart from a bill.

 

[LeeHayler]

@LeeHayler - as a new build, is this commonhold property? If so the residents themselves are the management company.

That is correct yes. The residents are the management company. However there appears to be a conflict of interest between the estate management company remus, and the developer. There seems to be some underhand things going on as well.. we now have a solicitor involved

 

[LeeHayler]

1, Follow the link given above
2, What was the full name of the last management company ?
3, Yes you may well need legal advice

Its a new build and i have bought my own house.. the company is called remus, and the developer after sales is vistry.. the 2 seem to be linked. We now have a solicitor involved.

 

[fisicx]

Remus gets a one star rating!

If you brought your house do you also have ownership of the land. If not it's going to get really complicated as it's possible you don't actually own anything, you have just brought the right to occupy. Check the purchase documents carefully as these will detail what you got for your money.

 

[WaveJumper]

I could understand this scenario if it was an apartment but a house, why buy a house that needs a management company to be involved

Would love to see a link to this builders website

 

[fisicx]

I could understand this scenario if it was an apartment but a house, why buy a house that needs a management company to be involved

It's more common than you think. The developer owns the land and you buy part of the commonhold (in effect a lease). It means the management company is responsible for the maintenance of the estate - for example, pavements, verges, grassed areas etc. People can end up with massive service charge bills because the management company decides to spend £50K on signage or a play park or whatever.

A mate was looking a property like but discovered the service charge included paying for an artificial lake they planned to build.

 

[eteb3]

There is some evidence of a misselling scandal brewing in similar cases. If you really are liable in the way you believe you are, any conveyancing solicitor worth their salt should have flagged your service charge liabilities and the fact that they are open-ended and beyond your control - and should have advised against the purchase.

If your solicitor was recommended by or has some other relationship with the developer or a related party, that is where the first conflict comes in. If that’s the case I would call the Solicitors Regulation Authority for their take.

And I hope you used a solicitor not an unregulated conveyancer, so you have the benefit of their professional indemnity insurance if necessary.

Others are right: unless you’re going to spend a long time in the law library, and are prepared to go to the legal gunfight carrying only your library card, you’re going to have to instruct a solicitor.

Last thing is that you have a statutory right to take over management of if the estate yourself, if you can get enough votes/approvals from the interested leaseholders.

 

[ethical PR]

Some questions

Can we withhold payment until such time as we are fully aware what we are paying for with the service charge ?

We have concerns about a potential conflict of interest around Susan Schofield , Director at VISTRY , being a director on the Spinnaker Residents Westbury Management Company

We are concerned that none of us were aware that the residents management company was being formed and should we have been ?

We are concerned that we are struggling to get a copy of the “ handover document “ which confirms when VISTRY transferred management of the estate to REMUS & the Residents Management Company …. Surely there should be a legal document for this ?

1. Look at your contract with them

2. Take legal advice

 

[Frank the Insurance guy]

If you really are liable in the way you believe you are, any conveyancing solicitor worth their salt should have flagged your service charge liabilities and the fact that they are open-ended and beyond your control

This! What did your conveyancer say during the purchase - if they did not raise any issues or advice, you may have cause to take action against them (initially a formal complaint, then legal action if necessary!).