Been ripped off over leasehold insurance? Take your complaint to the secret ombudsman, says Peverel

JanetKimIlSungLKPUPDATE April 18 16.08: Peverel statement at end of article

A retirement leasehold resident disputing Kingsborough insurance commissions with Peverel has been told that she must take her dispute to an ombudsman, whose rulings are not published.

Joan Wade, who has lived at Grasmere Court in Worthing since 2003, was appalled to receive a letter from Peverel’s senior area manager on February 26 stating:

“I understand the matter of insurance commissions has already been considered by our complaints panel and you have been informed of their decision.  If you are unhappy with their decision the next stage in our complaints procedure is to write to the Housing Ombudsman.”

Alternatively, Joan and her neighbours could take their case to the Leasehold Valuation Tribunal and – very publicly – dispute thousands of pounds of commission.

This is what Janet Entwistle, Peverel chief executive, and the venture capitalist owners of Peverel are very keen to avoid. She said in June last year in her AskJanet blog:

“Historically, some insurance commissions have been too high … With regard to your particular dilemma to take this to a tribunal, that really is something I want to stop.  We must look to try and resolve all matters constructively far earlier in the process so it doesn’t get to that.” [Read more...]

Janet Entwistle: ‘There are problems with Peverel’s reputation, but new owners are in it for the long term’

Janet Entwistle has published a digest of the questions and answers either emailed to her or asked at her public meetings with Peverel’s leaseholders on June 12.

The comments are a frank admission that the company has “problems of reputation” and address fraught issues such as insurance commissions, sub-letting fees and service charges – subjects that have been raised repeatedly on Carlex.

Peverel was bought from administrators three months ago by the private equity firms Chamonix and Electra, and Entwistle was appointed chief executive. She says they are “in it for the long term”.

The Q&As are published on the Peverel website:

http://www.peverel.co.uk/news/questions-from-the-customer-forums/1

A selection are reproduced (unedited) here:

Q: How will you rebuild Peverel’s reputation so people feel confident buying properties in the developments you manage?

A: I recognise there are problems with the reputation, but we are not here to just look at changing the brand.  That isn’t a long term solution.  What we need to do is make sure that the customer service gets better. This is the best way to change people’s perceptions of Peverel.

Q: Where does Estates & Management fit into the Peverel structure?

A: Estates & Management is not part of the Peverel Group. It is a company that acts as an agent for the landlord of some of the properties we manage and is owned by Consensus Business Group, part of the Tchenguiz Family Trust (TFT) and previously we were also owned by TFT. We do manage many of its developments still, but on a commercial basis – just as we manage developments for Berkeley Homes, Barratt Homes and other housebuilders.

[Read more...]

Managing agents owned by landlords must come clean … says leading managing agent

A managing agent owned by the freeholder should be made to disclose this relationship clearly to the leaseholders, one of the country’s leading managing agents has announced.

“They should be obliged to disclose if they have, or any party to whom they are financially connected has, any beneficial interest in the freehold title,” says Rob Plumb (left), chief executive of HML Holdings plc.

“Such a relationship clearly gives rise to doubts about their impartiality.”

Plumb’s comments appear in a letter in response to the London Assembly’s continuing investigation into leasehold service charges. In March it issued a report, Highly Charged, which was critical of “opaque” charges and claimed that leasehold complaints had increased by more than 50 per cent in ten years (more here)

The letter has also been forwarded to the Association of Residential Managing Agents and the Leasehold Knowledge Partnership. HML manages 35,000 residential properties.

[Read more...]

How you get scammed on insurance … with tips from LEASE!

It is a brilliant (not-so-little) earner and one that – astonishingly – isn’t illegal.

Buy up residential freeholds, charge enormous commissions for arranging the insurance and pass the bill on to leaseholders, who – and this is the really brilliant bit – have no legal right whatsoever to find out what the commissions are.

The Sunday Times earlier this week recommended that the wealthy buy up freeholds for the ground rents, adding: “Additional income comes from commissions for arranging building insurance …”

In fact, loading the insurance is the best gig in town.

[Read more...]