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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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My elderly mother moved into a flat in a residential development

Resolved Question:

My elderly mother moved into a flat in a residential development last year. Recently it has emerged that there has been financial mismanagement by the service company and substantial monies are missing / unaccounted for. A number of dubious practices have been identified, the common factor being the original developer (Mr W). Other residential developments with whom he is connected have similar problems.
The Committee of the Residents' Association are strangely unwilling to involve the police or take steps to sever ties with Mr W. Their operations are not transparent. They have rebutted my mothers' enquiries quite aggressively / offensively in public meetings. While some other residents agree with my mother many are acquiescent and don't want to make waves. There are (in my view) clear grounds for suspecting something untoward!
Do you have any general advice?
Many thanks
Peter
Submitted: 3 years ago.
Category: Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Hello Peter, thank you for your question.

tdlawyer :

My name is ***** ***** I should be able to assist with this.

tdlawyer :

Has she purchased the flat?

Customer:

Yes

tdlawyer :

Okay. Then it sounds like she may have something to look further into here.

tdlawyer :

She has a right to inspect all of the accounts relating to the estate, to satisfy herself the monies have been handled properly.

tdlawyer :

She has the right to inspect all books at the registered offices of the management company.

Customer:

I am a chartered accountant, presumably she can appoint me to do this?

tdlawyer :

You can attend with her to do it, yes.

tdlawyer :

However, technically, the right to do it belongs to her.

tdlawyer :

So, once there are genuine concerns about the handling and management of the estate, and it is possible to make an application to a Tribunal to have a new management company appointed to professionally manage the estate.

tdlawyer :

Yes, there will be a cost to pay to do this from the service charge, but ultimately the benefit of having the estate run properly may outweigh that disadvantage.

tdlawyer :

The application would be made to the first Tier Tribunal.

tdlawyer :

There is a very useful guidance note on how to do this here: http://arma.org.uk/leasehold-library/document/appointment-of-a-managing-agent-by-a-tribunal/page/1

tdlawyer :

This would override any of the internal restrictions of the company, such as the directors not being willing to appoint anybody else.

Customer:

Thanks, ***** ***** a look.

tdlawyer :

Okay, great. Can I ask whether you're happy with the service this morning please?

Customer:

Yes, that's helpful thanks

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