Even by the lamentable standards we have come to expect from Peverel/Firstport, the story of Fernwood, Newark, Notts truly beggars belief.
Fernwood is a village community with mixed leasehold flats and freehold houses that was built by David Wilson Homes.
The surrounding land leasehold was purchased by Peverel/ firstport (or associated companies and not disclosed to residents)) and of course they wound up with a long term management contract, which for legal reasons the Fernwood residents have to wait a further 5 years before they can sack Firstport (which they are certain to do)
Due to "commercial sensitivity" neither Firstport or David Wilson Homes would reveal the terms of the management contract.
Feeling very angry with the conduct of Peverel/Firstport the rersidents formed a committee to address their issues, and even helped form a Fernwood Parish Council, with the eventual aim of taking over the land management.
Thus far, a small sample of what they have discovered is
12,500 pounds of wrongly allocated expenses.
3 invoices for a site office and facilities which were the responsibilty of David Wilson Homes to pay amounting to 9,500 pounds.
Accounting errors, which according to Firstport amount to 15,000, according to residents 30,000 pounds.
They have discovered service charges being wrongly apportioned between flats and freehold houses.
They have discovered that freehold houseowners were being charged via the management fee and by seperate charges for Careline services.
According to Firstport, this was in case "a freeholder noticed a problem with a tree"
Some freeholders have been charged 1 pound a year. According to Firstport this was for ground rent. That's right! ground rent on a freehold property! Even E&M confirmed no ground rent was payable.
They have discovered a cheque fraud which involved payments to OM being intercepted and cheqwues being paid into a newly created OM Property Management account and then the funds were withdrawn.
They have also been charged totally unjustified levels of charges for changing mortgages, sellers packs, putting in solar panels and other alterations.
All this not for leasehold flats, but for freehold houses.
After intervention from Robert Jenrich MP, Firstport have conceded that "due to managerial savings" they no longer need to charge for consents for alterations, and they have agreed that a sellers pack is not needed to be supplied by them.
About Peverel is in no doubt that the very talented and dedicated residents at Fernwood will win every penny they are entitled to back.
Indeed a very glum Firstport manager claimed "We are not making any money on this development" Shame!
And if that was not enough problems for Firstport, the residents have put a lovely bombshell into the mix.
It appears that before a developer hands an estate over to a managing agent, the council must have sight of the contract to ensure planning laws are complied with.
Thus far, Newark council have failed to locate the contract or any evidence it had been presented to them.
A formal complaint has been made to the Ombudsman.
