Most critical LVT ruling ever made?
This piece is a report of the staggering Leasehold Valuation Tribunal victory at Charter Quay in November 2011.
It is the most devastating criticism of the Tchenguiz/ Peverel modus operandi to be aired and judged in open court.
The full LVT ruling can be read here:
November 27 2011: Property tycoon Vincent Tchenguiz and the property management group Peverel have been involved in a second massive defeat at a Leasehold Valuation Tribunal in as many months.
After the humiliation of a record £1 million pay-out to residents at ritzy St George’s Wharf in Vauxhall in September, last week Peverel’s legal team lost another £185,000 to leaseholders at Charter Quay in Kingston, Surrey.
The devastating Leasehold Valuation Tribunal ruling was unusual in the strength of language used to criticise managing agents County Estate Management, a Tchenguiz company of which Peverel took over operational control in summer 2008.
County Estate’s conduct was denounced as “disgraceful” for loading management fees, doling out contracts to other Tchenguiz-owned companies and loading the cost of insurance brokering.
Terms like “glaring failure” and “unacceptable behaviour” appear in the judgment.
The tribunal was astonished that between the Tchenguiz-owned landlord and the Tchenguiz-owned managing agents “there appears to have been no formal written contract appointing them at all”.
The tribunal contemptuously dismissed the obfuscated company ownership structure of the Tchenguiz family trust, with companies ultimately based in the British Virgin Islands. These were termed “quasi Biblical” in their length and complexity.