Page 887 - (A) Mammoth (998pp)

From: GraffitiEditionsLimited<studio@graffiti.biz> Subject: fortunati
Date: 7 February 2012 00:26:16 GMT To: studio@graffiti.biz
A few points I forget to answer - as I think there might be a slight misunderstanding as to the situation now
at Mitre House as regards our recent purchase of the Headlease -
There is NO documentation regarding the Resident's Association - none whatsoever - it is not even properly
funded (by the usual contribution per member for Secretarial expenses, paper, inks, telephone, photostats,
membership fees to other local societies etc). It is simply those interested in Mitre House keeping friendly
and pulling together against bad management by the Agents (to date, KFH) -
The Resident Association has no legal powers, only a collective influence against bad management, which even
then they cannot enforce - you will recall months ago when I gave you a very, very large bundle of letters &
correspondence between me and the Agents (KFH) over a period of probably 7 years or more - hardly any of which
were ever acted upon or solved - that's BAD MANAGEMENT which we all had to put up with having, as was our
situation, no legal power to do anything (save for an appeal to the Landlord & Valuation Tribunal to a) get
rid of the Agents and b) form our own Management Company which our (old) Head Lease Landlords, could NOT stop
us doing.
We went one better than that and purchased the HEAD LEASE from our old Landlords (Rivers Edge), which you will
recall you were invited to join in (as were ALL the other leaaeholders at Mitre House).
No other Leaseholders, including yourselves, wished to get involved, leaving only Flat 2 (Segar Karupiah),
Flat 5 (Michele Sigg), Flat 6 (Jamil Raja) and myself (Flat 7) to take on the cost and responsibility in
purchasing the Head Lease and formed a company, Mitre House Management Limited, to fulfill our obligations
within the Head Lease issued by the Freeholders, Royal London.
As such, just like the previous Head Lessor, Rivers Edge, we decide everything that happens at Mitre House.
Who to hire and fire and how much to spend, what to spend on, when to spend and how much to set as Service
Charge etc.
If we do NOT perform our duties correctly and to the satisfaction of Leaseholders, then those Leaseholders (a
majority is required) have the option to take us, Mitre House Management Limited, to the Leasehold Valuation
Tribunal and request we be removed and if we are, then the Leaseholders involved can form their own Residents
Management Company to run the operation (something we often thought about doing to get rid of Rivers Edge and
their Agents, KFH). But it's complex and expensive to do.
But, because we, Mitre House Management Limited, did NOT purchase the Head Lease with a view to making money
(indeed to reduce everybody's costs including our own), and because we all know each other, and are all very
neighbourly and friendly, with some of us having lived at Mitre House for between 20 - 40 years, consultations
and opinions and ideas are freely expressed and listened to, and we, Mitre House Management, will continue to
do that (whereas Rivers Edge/KFH adopted no such practice and did almost exactly as they wished, be that
painting the place green and white, spending as much as they possibly could, as they were making 12.5% on
every penny they spent on our behalf.
But and it's a big BUT, we have no obligation to Leaseholders whatsoever other than to maintain the place as
described in the Head Lease and each Leaseholders' individual Lease, where it makes very clear those
obligations expected of the tenant and of the Head Lessor. If we do NOT perform, then as described above, a
majority of Leaseholders can apply to the LVT and if successful, can form their own Management Company, of
which we, Mitre House Management, Head Lessor, would have a legal right to one vote in the newly formed
Residents Management Company, who of course would still be under the terms of both the Head Lessor (ourselves)
and their own lease - BUT - instead of we deciding on expenditure, agents, accountants, suppliers, service
charges etc, the Residents Management would do that with the proviso that there is enough money collected to
cover the correct and appropriate running and maintenance of Mitre House - and they would decide on all
aspects of expenditure, be that Interior Decor, Exterior Reparations, lift repairs etc.
--
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