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Leaseholders are not the customer. They are the product, LKP tells Lords committee

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I gave evidence this morning to the House of Lords Industry and Regulators Committee on the regulation of leasehold managing agents.

The transcript can be read here:

https://committees.parliament.uk/oralevidence/14360/pdf/

And the session can be viewed here:

https://parliamentlive.tv/event/index/92f4df56-f666-4a47-be9d-1d44d2097bed

I argued that it is secondary to the crucial point that managing agents are imposed on leaseholders by monetising freeholders. They are not the customers of these companies: they are the product.

I included reference to epic battles at Canary Riverside, back in court again this week, where the freeholder John Christodoulou is determined to regain control of the prime Docklands site from its section 24 court appointed manager.

After more than 20 days in court, the battle goes on. And on.

Although the property tribunal removed the landlord’s managing agent over established failings, a section 24 manager can be the accountable person under the Building Safety Act. So management may revert to the landlord.

I also referenced this case:

Wellcome Trust spends £114,000 on lawyers to defeat Onslow Square leaseholder in £6,000 dispute

And this one:

Richard Davidoff, of ABC Estates, ‘breached his fiduciary duties’ after disastrous performance as a court-appointed manager, rules property tribunal

And RICS’s inept efforts at self-regulation:

Case against Benjamin Mire collapses, as RICS disciplinary process descends into shambles

Related posts:

Bottomley tells BBC he will fight on for leaseholders Wellcome Trust ‘wrong’ over exploiting the lease extension racket in its property portfolio, Bottomley tells The Times EDM Richard DavidoffSir Peter Bottomley calls on ministers to listen to ‘whistleblower’ ex-employees of Richard Davidoff (of ABC Estates) Siobhan McGrathProperty tribunal chamber president Siobhan McGrath says Richard Davidoff has two other section 24 court appointments – ‘as far as I can ascertain’ – and proposes a new practice code to encourage section 24 appointees to behave Default Thumbnail10,500 leaseholders demand select committee hauls in housebuilders over rip-off ground rents

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Reader Interactions

Comments

  1. Christopher J Davis

    CJD/1/leaseholder arrangements/120324

    Dear Team,

    re Cognatum Estates Ltd..

    We are recent leaseholders with Cognatum Estates and live amongst a very bright and active estate of well experienced individuals, the atmosphere amongst the residents could not be more friendly and helpful..

    Having said that it was a relation to hear all the points made by Sebastian O’Kelly in his House of Lords presentation. It outlines our situation perfectly, the Landlord refuses to open the maintenance accounts and the annual increase in the maintenance charge is without full disclosure. It seems this applies to every Cognatum estate. There is a blanket refusal by Cognatum Estates Ltd., to relate to the estate as a whole and the management is poor in relation to the maintenance of property, fencing, landscaping, etc.,

    The refusal by management, Chairperson downwards (site managers excluded) to communicate with the leaseholders as a community, particularly when a common problem is laid out carefully and fairly in a communication signed by all leaseholders, The reply received was addre4ss to one individual using phrases such as “a residents has complained etc..” then refuting the matter or delaying a response.

    Every attempt to develop a good practical working relationship between Cognatum Estates and leaseholder is thwarted by the negative dictatorial response effectively saying “we are in charge you just live there and pay what we charge!”

    I am sure all residents fully support the work being carried out by yourselves and would wish to support the action. Please would you advise how we can be kept up to date with progress, It is difficult to understand such a legal imbalance in legal justice can exist in todays world.

    Looking forward to hearing from you and learning more,

    Yours faithfully,

    Christopher J Davis

    3, Framers Court, Ellis Way, Lane End, Buckinghamshire HP14 3LL
    07789 800925 hris@a-cjd.co.uk

  2. Stephen Burns

    Dear Mr. Davis,

    I strongly suggest that you and your fellow Leaseholders make every effort at your disposal to form a Right to Manage Company. Once that goal is achieved you will then have the Legal option of choosing a managing agent of your choice.

    I hope this information is of some use. If I can be of any assistance to you let me know.