Category: Financial

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Financial ILA Information Islington Leaseholders Listed Buildings Major Works Service Charges

Leaseholders get massive bill reduction at LVT for extremely poor major works, and massive overcharging.

One of the most important Leasehold Valuation Tribunal LVT decisions to date, from an Islington leaseholder’s perspective, was announced last week, (Merryweather court and Brennand court vs the mayor & burgess of Islington 29.3.12).

Please see the downloadable LVT decision pdf for details on the bill reductions, and to see how Islington leaseholders supported their claims before the LVT, plus the degree of detail they provide in evidence of shoddy workmanship, overcharging and gross mismanagement.   LVT – Merryweather & Brennand court vs LBI 29.3.12

Examples of the council overcharging identified by the LVT include roof works charges of £208,661 which were reduced to  £50,000, i.e. £25,000 per block. and asbestos removal charges of £157,371 that the Tribunal reduced to reasonable expenditure of £15,737.

This is one example, where the Council has authorised expenditure without satisfying itself that the expenditure is really necessary, and it demonstrates what can be achieved when leaseholders have the courage to challenge the bills they are sent, and demand that council officers ,  councillors and their contractors  are made accountable for their actions.”

Since the ILA can only supply ‘useful information’ on our web site, and not “advice”, as always, we suggest that you should obtain ‘professional independent legal advice’ before considering issuing such a challenge.

The Islington Gazette  has reported that millions of pounds of public money could have been wasted.

The ILA has already lobbied Islington Council, and, both the leader of the council, and the chair of housing, in regard to applying the reductions obtained by Merryweather/Brennard Courts leaseholders to all leaseholders in the same contract, and insisted that the council also reclaim, on behalf of the public purse, all monies related to tenanted properties in the same contract.   LVT – Merryweather & Brennand court vs LBI 29.3.12

 

Please feel free to pass on to other leaseholders you think may be interested

 

Late News:  The ILA  understand that LBI intends to appeal the decision.

 

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Financial ILA Information Islington Lands Tribunal LBI Leaseholders Major Works Service Charges

Leaseholders’ massive victory over repair costs at Tremlett Grove estate opens door for more challenges

Published: 13 April, 2012  by PETER GRUNER  IN an historic decision, a tribunal has cut repair bills for seven Archway leaseholders by a massive 60 per cent because much of the £2million remedial work on their estate was unnecessary.
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Financial ILA Information Islington Leaseholders Service Charges

Leasehold Insurance Policy Powerpoint Presentation & check your premium 04.12

Enclosed is the London Borough of Islington/Homes for Islington Leasehold Insurance Policy Powerpoint Presentation made by LBI brokers JLT last night to the ILA meeting. Thanks to JLT and LBI for answering questions. Insurance PPS presentation to ILA by HFI LBI JLT – 04.2012

 

Leaseholder may find it instructive to confirm their insurance premium is being correctly calculated by multiplying the “rebuild value” of their property by the current premium rate used of 0.1249% to obtain your annual insurance premium cost. eg £200K rebuild cost X current premium rate 0.1249%.= £249.80 You can obtain the “rebuild value” of your property from your relevant managing agent e.g. Council , HFI or Partners.

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Financial Information Leaseholders Service Charges

BCIS warns insurers about underinsuring flats

13 February 2012 |By insurancetimes.co.uk Newsdesk 
Policyholders could be exposed to “significant financial loss”

The Building Cost Information Service (BCIS) has warned insurers that buildings insurance arranged for individual flats carries a significant risk of underinsurance.
Buildings insurance is commonly taken out on the whole block by the freeholder of the property and the premium split between the various leaseholders.

“In a total loss situation, policyholders may receive a payout far short of the market value of their flat but they would still need to continue to pay their mortgage.”
OCASO etc are our guests at the forthcoming April ILA meeting.
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Financial ILA Islington Leaseholders Major Works PFI Service Charges

Leaseholder fact of the week

 Since the start of the PFI 2 contract 926 Final accounts have been issued to leaseholders as part of the Major Works program. Of these 326 have been challenged, about 35%, with an average charge of nearly £7,000 and a total charge of £1.4m. 285 of these challenges have been resolved.
Of these resolved cases 207 have received some form of adjustment to their account, with the majority of these being adjustments of less than £1000 (120 cases).
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Financial ILA Information Leaseholders Meetings Service Charges

OCASA Building Insurance – comments on the queries from ILA meeting

BUILDING INSURANCE QUERIES _ILA MEETING_11Jan12 and response from JLTAlison Goodwin from JLT [Jardine Lloyd Thompson Public Sector Risks] who admin OCASA Building Insurance have sent us comments on the queries submitted for the January ILA meeting. The ILA queries and her comments are in the attached document.

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Financial ILA Information Islington Meetings

Leaseholders left out of important meeting

“Leaseholders left out from this very important meeting” The GLA Planning & Housing Committee (who were investigating this issue) person responsible is Steve O’Connell and the “invited guests” to the Meeting of 23rd January 2012 were: 1) Martin Green, Head of Home Ownership & Tenant Management Initiatives, Southwark Council 2) Randall Bevis, Head of Home Ownership, Cith West Homes 3) Matthew Saye, Assistant Director – Home Ownership Services, One Housing Group 4) David Hewett, former Chief Executive, Association of Residential Managing Agents 5) Bob Suvan, Managing Director, BlocNet – BlocNet is a managing agent: Bob Suvan spoke at the last CARL AGM (see attached) where he gave a huge amount of how Leaseholders are being ripped off. The Greater London Assembly [GLA] is undertaking a Review of Leaseholder Service Charges. We have requested involvement and early notice of any public meetings, and have not received formal acknowledgement so far. At very short notice, on the day of the meeting, we were informed that a public meeting to discuss the review was taking place. The meeting was held on Monday the 23rd of January 2012, at 2.00 p.m, and only one representative for the ILA was able to be present in the public gallery. A copy of the list of issues submitted by a director of the ILA is attached. One example, relevant to points 1,2,3, 4 and 5 of the list, is that, during the major works programs, key individuals involved in running the various contracts are moved to other duties at key stages. New staff are brought in, without any continuity. This disrupts and undermines proper contract management, leads to inconsistency in client decision making, and leaves the contractor in charge of the works and the costs. The contractors in turn give insufficient supervision and instruction. All of this can lead to defects and higher costs. As there was insufficient notice of this public meeting, leaseholders would like an opportunity to put their case at a further meeting, to have a dialogue with the politicians in charge of the review directly. Please view the two attachments and link for further information about the issues discussed at the meeting on the 23rd of January: GLA Jan 12 Meeting Papers.pdf HC GLA list.docx A copy of the list of issues submitted by a director of the ILA. Please view the link. The meeting was webcast live and a recording was posted on the website. A full transcript of the meeting will also be available on the Committee’s web page here: http://www.london.gov.uk/who-runs-london/the-london-assembly/assembly_investigation/service-charges All leaseholder’s who agree please send via email a request to “Paul Watling” paul.watling@london.gov.uk and the Chair of the Review, Cllr. Steve O’Connell, steve.o’connell@london.gov.uk, stating that because of the insufficient notice, leaseholders request that a further meeting is held, and in the meantime, would request that we are told how leaseholders views will be taken into account. The summary questions asked at the GLA meeting were insufficient. Please copy in Dr Brian Potter email address “Brian Potter” , and Mary Morris email address “M Morris” , thank you. Dr B.S. Potter Chairman ILA

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Financial ILA Islington Website

Billions of taxpayers money wasted by council on PFI schemes says Gazette

Residents will pay almost £1billion into the hands of big business and banks as a result of expensive contracts agreed by Islington Council.

Treasury figures obtained by the Gazette show £358million was borrowed from Private Finance Initiative (PFI) schemes, which will rocket to £1.3 billion – almost four times the initial outlay – by the time it is paid off in 2037.

This means £943million extra will be paid by Islington taxpayers, though this figure does include maintenance on the projects for the length of the contracts.  more

 

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Financial Information Islington

Inspection of Accounts

  • Audit Commission Act 1998, sections 15 – 16
  • Accounts and Audit Regulations 2003 Regulations 13, 14 and 16

Each year the Council’s accounts are audited and any person interested has the opportunity to inspect and make copies of the accounts and all books, deeds, contracts, bills, vouchers and receipts relating to them. (A charge may be made for excessive copies.)
The accounts for the year ending 31 March 2011 and documents will be available at the Council Offices, 7 Newington Barrow Way, London N7 7EP between 9.30am and 4.30pm on Mondays to Fridays from on Monday 27 June 2011 until on Friday 22 July 2011.
If you wish to inspect any documents please apply first to Mohammed Sajid, Chief Accountant, at the above address or call 0207 527 2574/2432/3531 or email Mohammed.Sajid@islington.gov.uk so that arrangements can be made.
From 10.00am on 25 July 2011 until the conclusion of the audit process, a local government elector for the area of the Council, or his/her representative,may:
– ask the auditor questions about the accounts. Please contact the District Auditor, Mr Philip Johnstone, at the Audit Commission, 1st Floor Millbank Tower, Millbank, London, SW1P 4HQ to make arrangements to ask any questions.

– object to the Council’s accounts asking that the auditor issue a report in the public interest (under section 8 of the Audit Commission Act 1998) and/or apply to the court for a declaration that an item in the accounts is contrary to law (under section 17 of the Audit Commission Act 1998). Written notice of a proposed objection and the grounds on which it is made must be sent to the auditor at the address given above and copied to me at the following address:
Finance Department,
Floor 2, Council Offices,
7 Newington Barrow Way,
London N7 7EP
Mike Curtis

 

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Financial Information

File on 4 – PFI Profit

File on 4 – PFI Profits [Sunday 5.00 – 5.40pm, available on BBC iplayer]

Companies are making billions of pounds in profits from a secretive trade in PFI contracts. But why are taxpayers able to get so little detail? Gerry Northam investigates.

Related article:

http://www.bbc.co.uk/news/business-13712275

Refers to recent report by the National Audit Office to the Public Accounts Comittee, see

http://web.nao.org.uk/search/search.aspx?Para=2011|PARAYEAR

 

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Financial Information Islington Meetings

Audit committee 22.3.11 report

Audit committee 22.3.11 report

Various ILA members & leaseholders attended the Audit committee (AC) meeting reviewing reports on HFI’s “Quality of PFI Refurbishment Works” & and the “quality of Partners’ assessments of challenges made by leaseholders’ to their final bills for refurbishment works to their homes.”(LCR).

The meeting heard that in the AC’s opinion, everything was mostly fine, and considered Partners work in general as passing the council approved standard (availability standard) despite the fact that HFI inspectors only inspected 10% of the properties in the PFI2 contract and identified on average issues with all the properties they inspected (271 issue on 216 properties).

HFI also said that they could not inspect any more of the 4000 PFI2 properties, and refused to allocate any more of their 800 staff to property inspection and monitoring the availability standard on this PFI2 £426million contract. The report also says its impossible to judge whether Partners represent Value for money. This was accepted as fine by the AC.

Another (LCR) report said that 26 out of the 30 challanges made by leaseholders were successful with an average reduction in bills being £.1.4k and concluded that Partners treatment of challenges was fair, and made some recomendations to improve and speed up the process. ( full details in report via weblink below)

ILA Chair Dr Brian Potter called “the report a white wash” and invited the chair “Cllr Kelly” to attend the next leaseholders meeting—the invitation was not accepted—instead he asked if I would attend a HFI surgery!

Dr Potter said he was happy to attend any meeting with our councilors but without HFI present—since these meeting were at policy level—and HFI did not set the policy for Islington—The council did…!!!

you can download these reports ( all approved by the Audit committee) here