Page 7 - STATEMENT OF CASE re-OCR s22_1

4.. Running a Business
The proper management of the block at Mitre House involves a substantial amount of work, including:
.contracting, booking, negotiating with and paying suppliers/contractors;
.arranging statutory checks (fire, electrics, water, asbestos); .arranging regular visits for gas, electrics, cleaning, lift, insurance etc; .correspondence with leaseholders/ tenants and contractors;
detailed financial budgeting, invoicing, collection of quarterly demands for service charges,
annual reconciliations, accounting and liaison with auditors.
Thus the management of the Property is, and needs to be run as, a proper business. It is not inciden- tal administrative and/or secretarial work of a kind which many, if not most, leaseholders will engage in at home from time to time.
Under the terms of the Head Lease, the Head Lessee is not permitted to run a business at Mitre House. Nor are the directors permitted to run a business under the terms of their individual leases. (The leaseholders also have photographic evidence to show that Mr Brown-Constable has (or had) abrogated to himself certain of the common parts at Mitre House to serve as his office).
(comment/reply) We can confirm that we do everything on the list above and do consider it all incidental administrative and/or secretarial work of a kind which many, if not most, leasehold- ers will engage in at home from time to time. We do not consider minimal secretarial facili- ties, (24 hour emergency phone for tenants, a computer & a printer, as found in most homes today) in Mr Brown-Constable’s flat whilst he is also in residence and in attendance on site 24/7 for the benefit of only the residents constitutes running a business as per the covenant as laid down in all leases. Indeed all leases make clear that a staff flat can be provided for a porter or concierge such as Mr PBC.
5. Lack of professional safeguards
MHML does not provide any of the safeguards for leaseholders/tenants which would be available from a professionally qualified and appropriately regulated managing agent, (such as separate client/trust accounts, a formal complaints procedure and professional indemnity insurance). In multi- ple respects MHML fails to meet the terms of the Code of Practice approved by the Secretary of State under Section 87, Leasehold Reform, Housing and Urban Development Act 1993 - see in par- ticular the Service Charge Residential Management Code - some of these breaches being listed in Schedule Three below.
In the absence of such safeguards the leaseholders/tenants see no reason why they should pay the
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