Page 27 - (C) Good Ref_1

In truth, this whole project could and should have been executed with simply FOUR emails to you, Segar and Jamil (items 1-4 above) and prompt replies, plus me forming the company. That's it.... could not be simpler and hence a huge reduction down from Forsters £9000+ to Mr. Hodges' £2500 -
I rest my case! But I bet you would have given up the ghost had you been here arranging the whole process on budget, on schedule with all the above totally unnecessary difficulties whilst we were all away! Oui...?
As regards your most recent email re: Managing Agents, realistic etc - I totally agree and do appreciate that your contacts could be most valuable (only slightly worried that Coutney Manton recommends Forsters at £9000+ - as I expect you do now - and your other email letter of 9th September re: progressing the lease extension and do we want to join in etc outlining Mr Manton's fees etc). I reckon your costs, based on Mr Manton's fees etc would amount to £15,000 on top of whatever Royal London wish to charge for JUST the 99 year lease extension (and I mean just the extension, as I've added in Royal London's legal fees into the £15,000). If Royal London charge, say £53k (and that could rise by the day), you'll be paying upwards of £68k for the extension - that's a lot of money, but you're lucky, with your flat renting at upwards of £600pw it will only take a couple of years to pay it off! We live in tenants would need to earn £125,000 before tax to pay it. Flat 1 has just sold for £625k (last week) meaning Royal London will base their value (or try to) at upwards of around £1000 a square foot on all our flats which are all approx 645sq ft or 60 sq m - funnily enough, your side flats are slightly bigger that the 3 middle flats (Flat 1, Samya (if hers was normal size) and mine at the top) - only by 10 or so square foot, but still significant @ £1000 per sq ft....!
I appreciate, quite understandably seeing as the cost is going up daily, you wish to proceed with Mr Manton's figures, but in truth it's looking too expensive for me but I wish you well. I would certainly advise not using Forsters though.
Re: - Managing Agents or not - can I suggest you investigate Best Gapp Cassells and Smith Waters' costs and we'll discuss - as you know, KFH are charging £3925 fees plus Accountancy at £1365. Those are the two big amounts, along with amounts saved to reserves (£10-£15000pa) - the actual amount spent on everything else is actually almost reasonable, but of course, that's the problem and the place looks so miserable (although the cleaning at £2765 is not cheap based on what we receive - 2 hours a week approx which equates to £26.50 per hour - I'm pretty certain we can improve on that as any cleaning lady would be delighted at £26.50 per hour... but the present man, Bunny, is good and simply needs better organising (I have been in contact with his company Office & General to further discuss).
Where KFH (or any other) fail so badly, is simply spending money without any appreciation of validity of price charged - they don't care because they're probably making an additional 10 - 15% loading. That's the area to be very watchful of - as you can see from accounts, £600 for drain and gutter clearance - I do the gutters on the roof and the drains are constantly bad and no better after supposed treatments. Sundries including lightbulbs £100-£150 - a light fitment costs £6.50 and lasts 5 years - there's only 11 in the block!
I have an enormous file of complaints and queries to KFH on the last 5 years accounts, none of which ever get properly answered or credited back (an example being British Gas Business, our common parts electricity supply) have chaged at least three lots of £50 fines for late payment...! And BT have threatened twice to disconnect the lift telephone due to late payment - the reason I know is because both the BT and Elec bill come to Mitre House which I open, scan and send to KFH with a request that they have the billing address changed. I've been doing that for 6 years or even longer...!
I have also contacted all the regular contractors at Mitre House, BT, Elec, Entryphone, Cleaners, PIP Lifts (and regrettably the lift packed up and has jammed as of Friday evening.... hopefully PIP will attend and fix once I call either Julie@KFH or PIP direct on Monday), leaving only Buildings & Engineering Insurance, Health & Safety requirements and schedules, fire prevention and servicing extinguishers etc - Mr Hodges has written to KFH requesting an updated list of contractual suppliers and indeed when KFH's contract expires - I have suggested that KFH continie until 31st December 2011 and we (or another) take charge from 1st January 2012 - the reason being, our accounts and therefore KFH, run from 1/1/ - 31/12 each year - as such KFH and their accountants are fully paid up until 31st December at which time their accountants should produce their final set of accounts for year ending 31/12/11 - then we can get rid of them.
But I agree, running it ourselves won't be easy, but is very possible if we all pull together (and that simply means you, Segar and me as Jamil won't want to get involved too much as he only represents Flat 6 for the absent Italian owner), and as you say, if we can't get an Agent who seems OK (maybe Best Gapp or Smith Waters once you've checked 'em out) we can attempt it ourselves and see how it goes.
And finally, your various points raised in your letter as yet answered:
God knows how your friends could have advised you Wedlake Bell were serving their notice! But well done. Duncan Salvesen and Rivers Edge have now ceased trading as a company but maybe Mr Salvesan has moved to Dorringtons -
Thank you for the offer of £25 for the bank - but no need, Segar and I had to lodge something just to open it.
Re: accountants - yes, could be worth asking yours - mine (Pembertons) have said we should do it ourselves and
they'll show me how - so no cost (that's just our Mitre House Management Ltd) - if we did the Managing Agents and