UPDATE 11/12/17: This article has been updated with comments from the former and current owner of the management company (below).
Taylor Wimpey customers at its Surbiton Plaza II site have been landed with an embedded management company in one of the sector’s Roger-Southam-style deals.
And the leaseholders have also been shafted by Taylor Wimpey with doubling ground rents in their leases.
So they are disadvantaged and disempowered at the same time.
The developer has created what the trade recognises as a tripartite lease.
It means that the 30-odd flat owners at Surbiton Plaza II in south west London are stuck with a management company they did not choose for the duration of their 125-year leases.
The company that acquired the management off the developer was the now defunct J.J. Homes (Properties) Ltd, which is written into the lease.
In a further twist, its proprietor Anthony Tokatly is also written into the Daily Mail and a number of other tabloids, having sexually assaulted a woman teacher in a south London pub.
He was convicted earlier this year. The report wrongly suggests that Mr Tokatly is a billionaire, rather than stating that he managed property worth a lot:
Arrogant’ property tycoon, 45, sexually assaulted a school teacher
Anthony Tokatly, 45, grabbed the woman as she made her way to the toilet She was sexually assault whilst dining at 18th century pub in Wandsworth The victim’s husband confronted a drunken Tokatly but he denied the assault Tokatly, is a director at JPW Real Estate, which has assets of £2billion An ‘arrogant’ property tycoon sexually assaulted a school teacher in a pub as she enjoyed a night out with her husband.
J.J. Homes (Properties) Ltd changed its name to JPW Property Management Ltd (trading as JP Real Estate) on 16 September 2015. JPW Real Estate collects ground rents ‘for and on behalf on SG Properties Ltd’, the freeholder
Mr Tokatly resigned as a director in August 2015, and sold his shares in August this year.
This means the leaseholders and their money have been sold on again to the care of chartered surveyor Martin Wainwright.
Taylor Wimpey passing on the supposed residents’ management company to its flats is precisely the issue where LKP intervened concerning Roger Southam’s Chainbow company, which was embedded in the leases of London sites.
Even though some of the freeholds had been sold on to Adriatic Land, Taylor Wimpey somehow managed to hit reverse gear and dump Mr Southam.
Leaseholders who had been separately told in writing by both Taylor Wimpey and Mr Southam that the leaseholders had no legal rights in the management companies were suddenly told the opposite.
The companies were proper residents’ management companies and they were handed over to leaseholders’ control.
Taylor Wimpey leaseholders ask: if the management company is ours, how do we oust Roger Southam?
LKP has long been campaigning for every block of flats to have a residents management company where the shareholders or members are solely the leasehold owners.
This would mean that responsibility for managing the flats would lie with those with the greatest financial stake in them.
James Jordan, the head of Taylor Wimpey legal, told LKP:
“In order that our customers do not have the administrative burden of either running a residents managing company themselves, or appointing a third party managing agent, leases will usually include a management company.
“The management company was appointed, following a procurement process.”
“Our current leases include provisions which enable residents to appoint a new management company after a relatively short pre-agreed period of time, if more than 50% of the leaseholders agree to do so.
“This was not standard practice when the Surbiton Plaza lease was implemented.”
Mr Tokatly, who is a property management consultant, declined to comment when contacted prior to publication.
He wishes to make it clear that the article contains “false information with regards Management Rights being bought by JJ Homes from Taylor Wimpey”.
Simon Wainwright told LKP that JPW Property Management Ltd, of which he and Jessica Graham are both directors is wholly owned by J Peiser Wainwright Limited.
Mr Wainwright could not explain why JJ Homes (Properties) Limited was embedded in the leases as Surbiton Plaza II as “no one currently working at JPW Property Management Ltd was involved when the leases were initially granted”.
“What I can advise is that my company paid consideration when my company acquired its shareholding in the company now known as JPW Property Management Ltd, which was based on the amount and number of management contracts which it had at the time.”
“We have absolutely no connection with the freehold company.
“As managing agents, we are committed to providing a service to the leaseholders at this property, and we operate a Formal Complaint Handling Procedure with redress to the Property Ombudsman if any of the leaseholders is not satisfied with the services that my company provides.
“Whilst I am aware that the leaseholders in Plaza II are dissatisfied, I am not aware of any dissatisfaction with the services that my company provides.”
COMMENT
So there you have it: in the past, Taylor Wimpey was sparing its poor leaseholders the “administrative burden” by flogging off – or passing on with no consideration – the management to their flats to commercial operators.
And now, thanks to LKP kicking up a public fuss over Mr Southam’s handiwork, it has hit reverse gear and empowers leaseholders through the residents’ management company.
As with doubling ground rents, if its former policy was not wrong, why has it changed it?
In making the change, Taylor Wimpey may have lost a nice little earner if it effectively sells these companies – and Mr Tokatly denies this at Surbiton Plaza II – but it is small change compared with the doubling ground rent wheeze.
We argue that all blocks of flats, whatever the commercial property element, should have a residents’ management company from the start.
Given the often appalling build quality in this country, leaseholders need to be in charge of this entity before the warranties run out – which is why developers delay as long as possible handing over control.
Fortunately, LKP-accredited managing agent Rynew, founded by Daren Touhey and Desmond Moreira, is sorting out a host of snagging issues on new builds across London.
The independent Swindon managing agent Cherry Jones blew the whistle on these practices, which led Bovis to dumping Countrywide property management from its sites country-wide across the UK.
Countrywide ‘ripping off’ leaseholders, MP tells Commons. And it is given the boot by Bovis Homes
Mr Jordan – who deserves a Taylor Wimpey bonus of his own for keeping a straight face replying as he does – adds the thought that “the statutory right to manage process can be utilised as needed, should it become necessary or appropriate to change the current entity”.
IE that the leaseholders can opt for right to manage.
In fact, LKP has been contacted on various occasions by sites that have gone right to manage but which have tripartite leases. The booted out managing agent refuses to go “because we are in the lease”.
We are happy to advise in these circumstances.
As an aside, J.J. Homes (Properties) Ltd was briefly accredited to LKP. Mr Tokatly made fulsome declarations in support of leaseholder empowerment – “power to the people” was a favoured phrase – and appeared to share the ethos of this organisation.
More importantly, his references in 2012 were good and he had a very widely admired property manager deputy.
At the time, J.J. Homes was spending out very generously on promotion, which was noticed by rival companies.
It was no particular surprise to us that the company ceased its accreditation, and we were not sorry to see it go. That said, we were never contacted by aggrieved leaseholders during the period when J.J. Homes were accredited. And we were unaware that it was tucking itself up in tripartite leases.
Related posts:
Southam sells Chainbow to Savills, so who owns the embedded management companies now?
BBC R4 You and Yours exposes Taylor Wimpey buyers facing doubled ground rents to £500 before 10 years have passed
Taylor Wimpey leaseholders ask: if the management company is ours, how do we oust Roger Southam?
LKP meets Roger Southam and Taylor Wimpey over embedded management companies
We save money living at Woodchester Valley Village … but then we do all own it ourselves
DCLG urged to inform leaseholders over Grenfell cladding bills … and stop snubbing LKP
Goodness me, “ Property Tycoon” / “ Managing Agent” behaving in an INTIMIDATING and ARROGANT manner. NOOOOOOOO???
Seriously folks, I believe that sexual predators like the chap mentioned in the Daily Mail piece should have their genitalia removed without anaesthetic.
That will teach them to keep their hands to themselves.
For balance, I would recommend the same correction for Managing Agents who have been caught indulging in gross venality and nefariousness.
That’ll learn em. Not arf.
It is not necessarily the case that developers wait as long as possible to handover a development to a managing agent.
There are some managing agents (some really big ones, some really big News On The Block Award Winners) who in their quest to attain new management contracts (to replace many significant losses) are not to fussed about the quality of the development as they believe they can pass what rightfully should be the developers obligations onto the leaseholders through their service charges.
Is it not clear that developers delay handing over control of the residents’ management company?
There is an appointed managing agent from the start.
Your second point that managing agents are there to serve the interests of the developer – prevent expensive snagging works being done under warranty – does accord with out experience.
Until leaseholders control a block – through RMCs, RTMs or enfranchisement – the managing agent is working for someone else.
Admin, Of course you are correct that developers do indeed delay handing over to resident management companies (Particularly where the residents have some form of control over the management.) I refer of course to management companies appointed by the developer safe in the knowledge that the managing agent will not raise any issues with the developer..
Whilst I understand a developer has to appoint a managing agent initially, the purchase of a lease should automatically give a share in a Right to Manage company and that any developer appointments must be for a maximum of two years. After that if happy with them the residents simply re-appoint them.
Hello Michael,
If Managing Agents are initially appointed for two years, the Managing Agent the RTM choose could have a fixed term contract for maybe 5 years. This could lead to better performance as the Managing Agent will be more accountable to the common holders. If Managing Agents are registered and regulated then common holders could complete an annual online survey to feedback to the agent on their performance. This survey information could be made freely available in the public domain to enable comparison of agents to maintain or improve their performance and make it easier for RTM to select a new agent.
Dear S McDonald
Why on earth is a 5 yr fixed term for a managing agent a good idea?
What if you find out that they are absolute #hite after 10 months- then what?
How do you get rid of them?
Dear Kim
The 5 years is a suggestion maybe that is too long if it is quickly clear the Managing Agent is rubbish. Any improvement to the current system would be welcome from my experience as a leaseholder.
Although we need statutory regulation and registration of Managing Agents and replacement of leasehold by commonhold for flats.
We need a quick and easy process to sack a rubbish Managing Agent and appoint a new one.
Indeed. I do hope you have signed the online petition. for STRICT ,REGULATION. OF MANAGING AGENTS / ABOLITION OF LEASEHOLD and shared it with friends.and family.