November 2005
7th November 05
Today was the re-convened hearing of the VRA's Appointment of a Receiver Manager.
|
Mr R P Long
|
LVT Panel Chairman
|
|
Mr Preston
|
LVT Panel
|
|
Mrs Newman
|
LVT Panel
|
|
Mrs Rhodes
|
LVT
|
|
Mr N Faulkner
|
Labyrinth Properties Ltd
|
|
Ms C Street
|
Counsel for Labyrinth Properties Ltd
|
|
Mr A Rafferty
|
Bramsdon & Childs for Labyrinth Properties Ltd
|
|
Mrs L Lockyer
|
Biscoes for VRA
|
|
Ms L England
|
Counsel for VRA
|
|
Mr Burt
|
VRA
|
|
Mrs Burt
|
VRA
|
|
Mrs Hussey
|
VRA
|
|
Mr Ruscoe
|
Resident
|
|
Mr Hall
|
Resident
|
|
Mr Fernie
|
RVRA
|
|
Mrs Jessop
|
RVRA
|
|
Mrs McDonald
|
RVRA
|
The hearing commenced at 11.00hrs.
Mr Long began by saying that Mr & Mrs Munch's appeal in connection with the Intercom System, has now been withdrawn. He also informed Counsel that Mr Harvey of Huggins, Edwards & Sharp had wrote to the Panel on 1st November 05 requesting advice, but said that the Panel was not in a position of offer advice.
Mr Long requested that Ms England present her case to Appoint a Manager.
Ms England presented her case followed by her introduction of Mr Harvey of Huggins, Edwards & Sharp based in Great Bookham, Surrey.
Mr Harvey explained that he resides and works 65 miles away in Surrey. He explained that at present he has not sought the support of the residents.
Mr Harvey explained his history and informed the Panel of his experience.
He said that if he were to be appointed he would begin with a fact finding exercise including door knocking and speaking with residents about the problems they are experiencing. He said his purpose would be to keep the residents advised of progress of works. He said that the insurance and security costs for the estate were too high and that there was no indication that the estate had 24 hour security.
He said that he was confident that he could do a proper job working from Surrey.
He said he would propose to employ a Caretaker, a Cleaning Supervisor and one Cleaner. He said this would be more cost effective. The Caretaker would be employed to take care of problems like leaking roofs etc.
He would intend to make a visit once a week initially, and be present at Association meetings.
He said he would try to gain the confidence of the Leaseholders and to get Service Charges paid and to establish an arrears recovery.
He informed the Panel that in cases of holidays etc, he would employ a Property Manager to take over.
Mr Harvey then informed the Panel of a list of charges, they are as follows:
|
Basic Management Fee
|
Approx £40,000.00 + VAT
|
|
Initial Set Up Fee
|
Approx £2,500.00
|
|
Traveling Expenses
(for weekly visits)
|
£1,000.00
|
The basic Management Fees would not include costs for Work Specifications, Building Surveying Services etc. This would all be extra.
Office opening hours would be 09.00 - 18.00 hrs Monday - Friday. Emergencies would be via the Caretaker who would be non-resident.
Mrs Newman said that on Mr Harvey's CV, he states that other sites he Manages includes two adjacent blocks of mansion flats in Bayswater, totalling over 300 flats. At total of nine employees works there, why would Rowner only have three?
Mr Harvey replied by saying that "these flats have a high standard".
Mr Harvey was then question about his insurance cover. He said that at present his insurance would cover him for £10 million. Mr Long said that this would need to be raised as it was inadequate for the size of this estate. Mr Harvey agreed.
Mr Harvey then said that he has received correspondence with regards to the insurance for the estate. He said that one broker has offered insurance. Mr Faulkner said that it is the same broker as VMC 2 Ltd had in 2002 and as soon as this broker marries up the problems, the insurance offer would be withdrawn, due to the unpaid premiums in 2002.
Ms Street also questioned Mr Harvey. She asked about the costs for the Caretaker etc. Mr Harvey said the Caretaker would probably cost around £25,000.00 with the cleaners costing less. Mr Harvey also said that he would also hire an outside contract cleaning company as well.
Ms Street asked who would be employing all the staff. Mr Harvey was unclear and Mr Long advised that it would have to be Mr Harvey as he would be the "main man".
Mr Harvey appeared to be unclear as to the tasks he was asked to take on and Mr Long advised that he and Counsel for the VRA should have a 10 minute adjournment to discuss the matter further.
When they returned, Mr Harvey informed the Panel that he could not continue with the appointment for a manager without first consulting his partner who was in Hong Kong.
Mr Long and Mr Faulkner were in agreement that the matter should be adjourned until the afternoon of 22nd November 05 in Petersfield.
Mr Long told Mr Faulkner that since the hearing had been adjourned, the Panel would now consider Mr Faulkner's appeal for the 2004 and 2005 Service Charge applications.
The hearing adjourned at 12.45 hrs.
Anyone wishing to discuss the matter further, please contact any RVRA Team member in the usual manner.
9th November 05
RVRA would like to inform residents that the adjourned hearing to deal with the application to Appoint a Manager will be held at the Council Chamber, Petersfield Town Hall, Heath Road, Petersfield on Tuesday 22nd November 05 at 2:00pm
11th November 05
If you would like your own copies of the LVT Decisions, please visit www.rpts.gov.uk and search for the relevant Case Numbers. They are as follows:
CHI/24UF/LSC/2004/0001 - Application by the Landlord for the determination of reasonableness relating to 2004 Service Charge.
CHI/24UF/LSC/2004/0008 - Application from a long Lessee claiming unreasonableness of 2003 Service Charge.
CHI/24UF/LAM/2004/0012 - Application from the Village Residents Association for the appointment of Manager.
CHI/24UF/LSC/2004/0070 - Application by the Landlord for the determination of reasonableness relating to 2005 Service Charge.
22nd November 05
Today was the re-convened hearing of the VRA's Appointment of a Receiver Manager.
|
Mr R P Long
|
LVT Panel Chairman
|
|
Mr Preston
|
LVT Panel
|
|
Mrs Newman
|
LVT Panel
|
|
Mrs Rhodes
|
LVT
|
|
Mr N Faulkner
|
Labyrinth Properties Ltd
|
|
Ms C Street
|
Counsel for Labyrinth Properties Ltd
|
|
Mrs L Lockyer
|
Biscoes for VRA
|
|
Mr T Concannon
|
Counsel for VRA
|
|
Mr N Harvey
|
Huggins Edwards & Sharp
|
|
Mr Burt
|
VRA
|
|
Mrs Burt
|
VRA
|
|
Mr Ruscoe
|
Resident
|
|
Mr Hall
|
Resident
|
|
Mr Fernie
|
RVRA
|
|
Mrs Jessop
|
RVRA
|
|
Mrs McDonald
|
RVRA
|
The hearing commenced at 14.00hrs.
Mr Long addressed everyone and gave a summary as to why we had an adjournment of this case.
Mr Concannon began asking Mr Harvey about his concerns about taking the job on.
Mr Harvey explained that he has two partners who are very concerned about the financial status of the Village and how much money would actually be handed over if he took the job on. He said that he would need more information on any arrears and expenditure. He said that with the information given by Labyrinth Properties Ltd, £40,000.00 had been spent in the last 6 weeks.
Mr Faulkner explained that within this amount there were two instalments for insurance each costing £10,292.78, weekly payments of £1,977.52 for Security and weekly payments of £1,689.00 for Cleaning & Maintenance.
Mr Harvey said that he was aware that there was money due from the Landlord but was unsure as to exactly how much.
Mr Harvey said that the Caretaker, Cleaning Supervisor and Cleaner he intended to employ would be employed by Huggins, Edwards and Sharp.
Mr Concannon asked Mr Harvey if he was still interested in taking the job on, Mr Harvey said hesitantly that he was but would still have to "confer with his partners".
Mr Long suggested a 10 minute adjournment.
After the 10 minute adjournment, Miss Street informed Mr Harvey that the monies due to the Service Charge Account were as follows:
£100,000.00 from the Landlord
£49,000.00 from Focushawk
£260,000.00 from Residential
The Focushawk amount would be in the hands of the liquidators.
Mr Faulkner informed Mr Harvey that at present the Service Charge Account stands at £4,585.81.
Miss Street asked Mr Harvey the cost for the employees he intended to employ.
|
Caretaker
|
£25,000.00
|
|
Cleaning Supervisor
|
£16,000.00
|
|
Cleaner
|
£16,000.00
|
Mr Harvey was asked how he would employ this staff with such low funds being contributed to the Service Charge Account. Mr Harvey gave no firm answer, but suggested he may keep the contractors already on site until the situation improved.
Mr Harvey was asked how he would fund the 2006 Services if the residents did not pay their Service Charge in full in advance.
Mr Harvey gave no firm answer but suggested that his firm may advance approximately £20,000.00 - £30,000.00 to the Service Charge Account for one year only.
Mr Harvey said that he would employ staff instead of any Contractors, but accommodation should be made available for them (office or room) with the cost being paid by the Service Charge.
Mr Harvey was asked about the full cost for his plans. After some consideration a figure of £60,000.00 for employees plus costs for accommodation and equipment.
He was asked about how he would carryout jobs without the equipment. He said items would have to be purchased but Miss Street said that equipment alone could cost thousands of pounds.
Mr Harvey was asked how his 6-8 weekly newsletter would be funded. Mr Harvey said that the first newsletter would be posted (costs coming from the Service Charge) and hand delivered by Caretaker from then on the cost being inclusive of Management Fees.
Mr Harvey was asked how he was approached by the VRA. He said that he first met Mr & Mrs Burt around 10 weeks ago. No provisions for plans or costings have been given.
Mr Harvey was asked if he would continue to carry out the works depicted in the Johnson Report. Mr Harvey said that he would use this as a "useful reference."
Mr Faulkner enquired about Mr Harvey's Indemnity Insurance. Mr Harvey said that at present his limit is £10 million. Mr Faulkner said that due to the size of the estate this would need to be updated to £25 million. Mr Harvey said that he would need to update his policy, but as yet has not written to his insurance company.
Mr Faulkner asked Mr Harvey if there were any evidence that he could gain insurance for the estate, Mr Harvey said no.
Mr Long interrupted the questioning by saying that all these questions should have been answered prior to the hearing. Mr Faulkner replied by saying that he had wrote to Biscoes (VRA Legal Rep), but he has had no reply.
Mr Harvey was still unable to confirm whether he would take on the job so the hearing was adjourned for a further 10 minutes.
On returning, Mr Harvey enquired about the Loan which Rowner Estates Ltd had given to the Service Charge Account, this being at present £20,000.00. Miss Street said that this loan would be offset against any arrears from Rowner Estates Ltd, however could not comment about the arrears from Focushawk Ltd as this had accrued due to the decision of the LVT. It was also agreed that a 4% above base rate of interest should be added to these arrears.
Mr Concannon discussed the 2006 Budget with Mr Harvey and asked his opinions. Mr Harvey said that in his opinion the Insurance quote was too high and that the Caretaker could take on the role of Security. He also said that he still had reservations about taking the job on.
Due to the reservations, Mr Long decided to adjourn the hearing for a further 10 minutes.
On return, Mr Concannon asked Mr Harvey again whether he would be willing to take on the job of Receiver/Manager of the estate. Mr Harvey declined the offer as there were too many negative factors.
Mr Concannon then addressed the Panel by withdrawing the VRA application.
The matter of the Section 20 Application to prevent the costs of this hearing being added to the Service Charge by the Landlord was then discussed.
The Costs were as follows:
Landlords Costs - Labyrinth Properties Ltd/Solicitor/Barrister - £5,500.00 + V.A.T.
Mrs Lockyer said that the VRA had to bear their legal costs, Mrs Lockyer charging £60.00 per hour and £300.00 per hour for Mr Concannon and that the Landlord should not put his costs on to the Service Charge Account.
Miss Street appealed by saying that this is the "second bite at the cherry" VRA had to propose a Receiver/Manager and therefore the Landlord should be allowed to charge for this time consuming hearing.
This will now be decided by the LVT Tribunal Panel.
Anyone wishing to discuss the matter further should contact RVRA in the usual manner. We now hope that the major works can commence and those who have suffered by not having lifts can now hope to see a light at the end of the tunnel, not forgetting those who have suffered with leaks.
24th November 05
Due to information given to RVRA by a resident in Lawrence Walk, we recently informed residents that Portsmouth Water were in the process of giving 'compensation' to residents in connection with the lack of water supply.
RVRA have been in touch with Portsmouth Water and have been informed of the following:
"I understand the resident you refer to took over the responsibility of the property and paid her bill accordingly, but did not actually move into the premises due in part to the reduced water supply at night. As we were led to believe that she was not in occupancy it is not necessary for her to pay a bill for an unoccupied property, hence the £17 refund of the bill paid previously."
RVRA would stress to residents having trouble with the water supply that this is not the same as compensation.
Portsmouth Water say they are undertaking works which should improve the situation and are monitoring the situation and will keep in close contact giving any progress reports.
Anyone wishing to discuss the matter further can contact RVRA Team Members in the usual manner.
25th November 05
Below you will find the proposed Service Charge Budget for 2006, anyone wishing to discuss the budget can contact any RVRA Team Member in the usual manner.
|
Darwin Roof Overlay
|
£79,485.00
|
As per Johnson Report + 5%
|
|
Re-asphalting Walkways
|
£19,635.00
|
As per Johnson Report + 5%
|
|
Stairs Cladding Repairs 64 Flights/Landings
|
£2,625.00
|
As per Johnson Report + 5%
|
|
External Redecoration
|
£39,060.00
|
As per Johnson Report + 5%
|
|
Associated Repairs
|
£8,400.00
|
As per Johnson Report + 5%
|
|
Trunking and Fanning Replacement
|
£65,520.00
|
As per Johnson Report + 5%
|
|
Lift Maintenance
|
£3,675.00
|
As per Johnson Report + 5%
|
|
Engineering Insurance
|
£1,500.00
|
Cover for 4 Lifts
|
|
Lighting & Electrical
|
£2,100.00
|
As per Johnson Report + 5%
|
|
Day to Day Repairs
|
£31,500.00
|
As per Johnson Report + 5%
|
|
Security
|
£109,311.00
|
As per Johnson Report + 3%
|
|
Landscaping and Cleaning
|
£74,263.00
|
As per Johnson Report + 3%
|
|
Management Fee (inc Site Manager)
|
£66,950.00
|
As per Johnson Report + 3%
|
|
Insurance
|
£221,965.00
|
|
|
Accountancy
|
£3,740.00
|
As per Johnson Report + 3%
|
|
Total
|
£729,729.00
|
|
|
|
Based upon residential units paying 86.3%
2 bedroom flats pay £1,979.02
3 bedroom flats pay £2,290.61
|
|
|
|
Based upon residential units paying 95% and the insurance cost is reduced to £140,000.00
2 bedroom flats pay £1,934.87
3 bedroom flats pay £2,239.32
|
.
