Dennis Jackson and Plantation Wharf: Did it have to end like this?

Plantation Wharf, opposite Chelsea Harbour, has seen a series of poisonous forfeiture disputes. The latest involving Dennis Jackson came close to ending in utter disaster

Plantation Wharf, opposite Chelsea Harbour, has seen a series of poisonous forfeiture disputes. The latest involving Dennis Jackson came close to ending in utter disaster

COMMENT by Sebastian O’Kelly

SEBASTIAN-OKELLY--144x150Two days ago when the barrister Alexander Bastin successfully asked the judge at Wandsworth County Court to throw me out of his court – citing the Human Rights Act – the whole sorry saga of Dennis Jackson and Plantation Wharf reached a new low-point … although not one without an element of dark humour.

Bastin, representing the freeholder of Plantation Wharf, Cube Real Estate, has defeated Jackson at every turn to the point where the latter was facing homelessness and destitution. The hearing – with only two days to go before Jackson’s £800,000 flat could have been lost forever – was to request the lifting of the forfeit order granted on January 30.

So when Bastin suggested that the Human Rights Act was grounds for ejecting the “press”, to use his term, one can only assume he was cracking some sort of lawyerly joke. The only human rights at issue were those of Jackson himself, by whose invitation I, and Martin Boyd, my colleague at the Leasehold Knowledge Partnership, had come to the court.

Jackson, 73, who was not legally represented, and a barrister for the Prudential, his mortgage lender, told the judge that they had no objection to our attending. But Bastin insisted and the judge – apologetically – ordered us out.

As a result, a closed court was convened to decide whether to take from Jackson every significant asset that he has, without the public having any right to be present.

Only in leasehold would such a thing be possible, one is tempted to conclude.

Having taken one bad decision – it should never be a minor matter to throw the public out of a court – Deputy District Judge Colquohoun sensibly lifted the forfeiture order returning the lease to Jackson as the Prudential agreed to pay off his outstanding debts.

The strain shows on the face of Dennis Jackson, 73, on Monday ... but at least Wandsworth County Court gave him back his home

The strain shows on the face of Dennis Jackson, 73, on Monday … but at least Wandsworth County Court gave him back his home

These are £76,086.20, and are wholly accounted for in legal costs. Jackson paid off the original disputed £7,548 service charges years ago.

Enormous though the legal costs are, the lawyers have appealed to the Upper Tribunal (Land Chamber) for more.

Jackson is desperately trying to sell his flat, where he has lived for 16 years, and what he walks away with is the open question.

At this point, it is worth re-capping on what has been going on at Plantation Wharf, a complex on the river at Battersea of 160 flats and 94 commercial premises that was built 18 years ago.

The neighbours include John Bercow, the Speaker of the House of Commons, who bought a £935,000 leasehold house in January, and Nigella Lawson, who has her TV studio kitchen there.

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Leasehold pensioner reprieved from forfeiture … but the legal bill is £76,000 and rising

Dennis Jackson, 73, faced losing his home and his life-savings in a forfeiture action heard behind closed doors today

Dennis Jackson, 73, faced losing his home and his life-savings in a forfeiture action heard behind closed doors today

The pensioner who had the lease on his £800,000 flat forfeited won a reprieve today when his mortgage lender stepped in to pay his outstanding debts.

Dennis Jackson, 73, a former commercial photographer, had the lease on his split-level flat at Plantation Wharf in Battersea forfeited last month and had 28 days to be out of the property.

But in a court action this morning – the day before Jackson faced being ruined and made homeless – the Prudential, which has a £175,000 mortgage on the property, undertook to pay the outstanding debt.

Ninety per cent of the amount owed is accounted for in legal fees for the freeholder, Cube Real Estate. The original dispute involved only £7,000 in service charges.

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Why does it take 60% of leasehold residents to create a tenants’ association – and only 30% of his constituency to elect Housing Minister Mark Prisk?

MpriskThe Leasehold Knowledge Partnership is strongly urging Housing Minister Mark Prisk (right) to change the rules to recognise tenants’ associations, as leasehold residents’ associations are formally known in law.

At present they can only be set up when 60 per cent of the residents ask for one to be recognised by their freeholder. This is a very difficult target to achieve, especially in blocks where so many of the leasehold owners are not owner-occupiers. LKP wants the bar to be set at a more reasonable 40 per cent, and makes the point that in the housing minister’s own constituency of Hertford and Stortford he achieved only 30 per cent of the vote.

Mr Prisk would doubtless be indignant if it were suggested that he was not the democratically elected parliamentary representative.

LKP urges all leaseholders to form residents’ associations. The protections of leasehold law only work if you act collectively and forming a tenants’ association is a crucial first step. Needless to say, they are strongly resisted by freeholders and managing agents

It helps prevent those who have a particular grievance fighting it out alone with the freeholder – and his lawyers – and coming seriously unstuck.

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Housing minister makes a start with a round-table discussion of leasehold

On Wednesday the leasehold “industry” was given the opportunity to persuade Housing Minister Mark Prisk that it has cleaned up its act with new codes of practice and consumer charters.

The representation was largely from the commercial interests of leasehold and from the trade bodies that serve them. But there were also members of Parliament, such as Sir Peter Bottomley, Justin Tomlinson and Baroness Gardner of Parkes, who have publicly spoken out in support of home-owning leaseholders.

Carlex / Leasehold Knowledge Partnership was relegated to observer status only – and that grudgingly at the last minute – perhaps in punishment for having organized, with Sir Peter Bottomley, the meeting with Mr Prisk at Westminster in December which brought about the round-table in the first place.

Amour propre aside, it was very good that leasehold is being considered as a problem by the housing minister and he is seeking solutions.

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Chairman of leasehold RMC accused of stealing £1 million

Copsey charged for £1 million leasehold fraud, as reported on Daily Mail website

Copsey charged for £1 million leasehold fraud, as reported on Daily Mail website

The world of leasehold is engulfed in yet another scandal as a chairman of a residents’ management company has been charged with stealing more than £1 million.

Brian Copsey, 59, finance chairman of Bryanston Court Management, a block of luxury flats in London’s Marble Arch, has been charged with plundering the cash between March 2010 and October last year.

If the accusation is proved true, the fraud will dwarf the £120,000 theft from leaseholders’ accounts by Simon van Houten, the Rendall and Rittner executive who was jailed for 30 months at the Old Bailey last year.

Shareholders of Bryanston Court Management are the leaseholders in the block, where a two bedroom flat would cost around £1 million.

The company had assets in its contingency and service charge accounts of £1.7 million in 2011.

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Battersea MP wades into Jackson leasehold forfeiture dispute

JaneEllisonBattersea MP Jane Ellison (left) has joined the call to stop the forfeiture of the £800,000 leasehold flat belonging to her constituent, Dennis Jackson, 73.

In a letter to Bob Devey, executive director of the Prudential – copied in to LKP – she says:

“As Mr Jackson’s Member of Parliament, I would like to lend my support to what Sir Peter Bottomley MP, who has a great deal of experience in this area, has already said and I look forward to hearing the result of the urgent legal consultations you refer to in your email below. I can only hope that you can take positive action which results in the best possible outcome for both my constituent and indeed the Prudential itself.

“It has become clear to me, from my involvement in this case, that mistakes have been made by most parties involved at each stage, not least with regard to some basic aspects of court administration. I therefore very much hope that the Prudential can avoid compounding these mistakes by leaving Mr Jackson in a situation where he is left without a home and where the Prudential is effectively left out of pocket.

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Minister holds roundtable talks on leasehold

MpriskHousing Minister Mark Prisk (right) is holding an hour-long roundtable discussion on residential leasehold tomorrow.

The meeting is to be attended by trade body representatives such as Michelle Banks, of ARMA – a former civil servant at the Department of Communities and Local Government – RICS, and the Association of Retirement Housing Managers (ARHM). Representatives of the Ministry of Justice will attend, as well as the two civil servants at the DCLG who handle leaseholder issues.

Also attending will be Sir Peter Bottomley, MP for Worthing West, who has an interest in leasehold abuses, and barrister Stephanie Smith, who took on the case at no charge of the “legal torture” pensioners at Oakland Court, Worthing.

LKP / Carlex will be attending as an observer.

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Plantation Wharf leasehold pensioner has forfeiture order on his £800,000 flat

Dennis Jackson at Wandsworth County Court

Dennis Jackson at Wandsworth County Court

Dennis Jackson, a neighbour of Commons speaker John Bercow and TV chef Nigella Lawson, has had his leasehold £800,000 riverside London flat at Plantation Wharf forfeited by court order.

Unless a deal is brokered, retired photographer Jackson, 73, has until February 27  to pack his bags and get out of the attractive split-level apartment in Battersea in south London. He has been living there for 16 years.

Sir Peter Bottomley, Tory MP for Worthing West who has an interest in leasehold issues, has urged Jackson’s lenders, the Prudential, to intervene to prevent the flat being lost.

Three years ago Jackson refused to pay £9,000 in service charges for works he says were never carried out and was taken to the Leasehold Valuation Tribunal. But although he won some points, the freeholder, Cube Real Estate, successfully argued that its £70,000 in legal costs be awarded against him.

On January 30, his lease was forfeited at Wandsworth County Court. Forfeiture of a lease – which is not the same as repossession – means that Jackson will lose all the equity he has in the property amounting to more than £600,000.

“I face absolute ruin because of this,” says Jackson. “I was arguing about service charges for items such as new hallway carpets and now I face losing my home and my entire life savings.

“I am looking at complete and utter destitution.”

The Leasehold Knowledge Partnership claims that this is the worst case of forfeiture it has encountered.

“This is not remotely justice,” said Sebastian O’Kelly, of the Leasehold Knowledge Partnership. “An argument over £9,000 becomes a legal bill of £70,000 and now a totally undeserved windfall for the freeholder of £800,000. Nothing better illustrates the absurdity of English leasehold law than this.

“If the forfeiture order is not overturned, it will be a national scandal.

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Sorry leasehold right to manage is ‘somewhat daunting’ says junior minister … but I’m not going to do a thing about it

DonFoster2Junior minister Don Foster (left) has defended his remark that the elderly and the vulnerable find exercising leasehold right to manage as “somewhat daunting”, which some leasehold residents find somewhat insulting.

Foster, who was made a parliamentary under secretary of state for the Department for Communities and Local Government in September 2012, says: “As this is a concern which a range of leaseholders have themselves expressed to me and to my colleagues, I cannot share the view that this is an insulting remark and it was certainly not intended as such.”

Foster’s remarks are made in a letter to fellow LibDem MP David Laws, who is the constituency MP of Carlex activist Brian Reeves.

Many leaseholders are indignant that right to manage, which was introduced by the Labour government in 2002 as an important protection for leaseholders, is being thwarted by freeholders using every legal stratagem possible to frustrate the process.

Often the most belligerent freeholders also own or have an interest in the property management and are busily monetizing the asset with stealth commissions from insurance, energy suppliers, kick-backs from suppliers such as builders … as well as outright loaded service charges.

These abuses have been successfully challenged repeatedly at Leasehold Valuation Tribunals. This is why the leaseholders at St George’s Wharf in Vauxhall, central London, were repaid £1 million. It is why the leaseholders at Charter Quay, Kingston, received £500,000 in four LVT rulings. It is why Strand Court in Rye, a retirement complex, got back £11,500 from Peverel, which received stinging criticism in the ruling last year.

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Observer newspaper features Leasehold Knowledge Partnership – and warns of problems with joint freehold owners

ObserverpageLeasehold Knowledge Partnership featured in the Observer last Sunday in an article on the perils of leasehold. The full article can be read here

The article, by Emma Lunn, also included this interesting case study on the perils of jointly owning the freehold with neighbours who don’t like you.

Freehold owners have to sign off the transfers on a sale, for which many demand tiresome and exploitative fees. But that is better than a neighbour who just won’t co-operate at all:

Case study: Freehold also has its pitfalls

When I bought my flat in Manchester, writes Sally Briggs, I was convinced I’d made a smart move by buying a share of freehold, rather than a leasehold, property. The freehold was only shared with the owners of one other flat, so it seemed like a great arrangement. However, I soon revised this view when I came to sell.

“When you’re buying a flat, alarm bells should ring if you see individual owners as the freeholders,” says Paul Goward, property partner at law firm Joelson Wilson. “It might not be a problem when you buy, but you should always think of how it might impact when you want to sell.”

When I came to sell I could not get one of the other freeholders to sign the document that transfers the freehold property into the name of the new owner. The problem went on for months and very nearly cost me my buyer. Only the threat of court action did the trick.

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RICS rejects complaint against managing agent Benjamin Mire

The Royal Institution of Chartered Surveyors has decided not to pursue a complaint about a member, Benjamin Mire, who was criticised for failing to follow its “residential management code” at a recent Leasehold Valuation Tribunal.

An additional complaint concerning Benjamin Mire, of Trust Property Management Limited, was that Mire, a chartered surveyor, also sits on the LVT as a panel member. It is claimed that this is a potential conflict of interest.

At an LVT ruling in November 2012, Trust Property Management Limited, which manages the property interests of freeholder Lakeside Developments, was criticised with Lakeside for the management of Arthur Court, a two-storey site of four flats in Bournemouth.

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Leasehold Knowledge welcomes Red Rock Property Management

RedRocklogolargeWe are delighted to announce another managing agent has joined Leasehold Knowledge Partnership: Red Rock Property Management, which manages 594 leasehold residential units in Essex and Middlesex.

The company, which is a member of ARMA and the Property Ombudsman, is run by Adrian Calver.

The website is: http://www.redrockpropertymanagement.co.uk/index.html

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Tory MP backs pensioners in leasehold right to manage dispute

Colvile2Tory MP Oliver Colvile (right) yesterday pledged his support to the two leasehold retirement developments in Plymouth that are locked in leasehold right to manage disputes with their freeholder.

At two packed meetings at Elim Court and Regent Court in his  Sutton and Devonport constituency, Colvile told the residents that he would support them in their litigation and to generate publicity for their cause.

Colvile said he would look into an application to the Bar Council pro bono unit to see whether the right to manage cases – both of which are going to appeal at the Land Tribunal – would merit free high-end legal representation.

He also said he would contact staff at Plymouth University law school to examine the case.

The residents left Colvile in no doubt of their strength of feelings towards their landlord, Avon Freeholds, and managing agent Y and Y Management. Both are London based.

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Islington leasehold dispute costs £300,000 in overcharging

Islington council is to overhaul how leaseholders are charged for repair works after being forced to write off more than £300,000 following successful appeals against overcharging – with the prospect of another £429,000 still to be paid out.

The major climbdown was announced at Tuesday night’s Audit Committee meeting, when chairman Labour councillor Phil Kelly admitted there had been “mistakes” and welcomed a new era of “understanding and communication” between leaseholders and council officials.

It follows last year’s extraordinary victory for seven leaseholders who live at Tremlett Grove, Archway, who had their bills reduced by 60 per cent, from £28,000 to £12,000 for roof work, which a tribunal ruled was not necessary.

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Bottomley meets Joseph Gurvits and Israel Moskovitz over leasehold right to manage disputes at Plymouth retirement developments – but residents are determined to fight it out

BottomleySir Peter Bottomley MP (right) held a meeting yesterday at his Westminster offices with the freeholder and managing agent who are locked in right to manage disputes with leaseholders at two Plymouth retirement developments.

The meeting was an informal exchange of views between freeholder Israel Moskovitz, property manager Joseph Gurvits and Sebastian O’Kelly and Martin Boyd of the Leasehold Knowledge Partnership. The meeting was also attended by Sophie Hutchinson, parliamentary research assistant of Oliver Colvile, the pensioners’ MP, and Elena Andreadis, property manager for the sites.

Earlier this month Elim Court lost its third attempt at exercising its right to manage against Mr Moskovitz’s Avon Freeholds at the Leasehold Valuation Tribunal owing to errors in the paperwork. Regent Court obtained right to manage in February last year, but the issue is being appealed at the Land Tribunal in April.

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