Fighting huge bill from Brighton and Hove City Council with buy-out

Residents of Park Royal estate, Montpelier Road. They have been told by the council that they have to pay £724,791, £17,500 per leasehold flat for major works Residents of Park Royal estate, Montpelier Road. They have been told by the council that they have to pay £724,791, £17,500 per leasehold flat for major works

Householders slapped with a £725,000 repair bill by council bosses have pledged to fight it – by buying their properties outright.

The notice served by Brighton and Hove City Council on those in Park Royal in Montpelier Road, Brighton, worked out at about £17,000 for every flat.

Claiming the estimated costs were inflated, about 50 leaseholders have now formed their own company to buy the freehold from the council.

Local authority bosses, who claimed the quote was verified for value for money, now have until March 15 to counter the offer.

Until then, council contractors say they must carry out some “essential” work to the blocks to meet legal responsibilities, which will have to be paid for by the residents.

Anne Thompson, the chairman of directors of 66 Montpelier Road Ltd, said they were paying the price for “years of neglect”.

She said: “We are a group of determined people who are exercising our right to purchase the freehold of Park Royal.

“Despite this, the council appears intent on bullying us into having major works done to our property against our expressed wishes.

“We believe we can manage Park Royal on behalf of ourselves and the council tenants for one third of the cost and most importantly, in the best interests of all the residents living here.”

Contesting costs

The council’s estimated costs, which include fixing windows and roof insulation were discussed at a public meeting in December.

The latest estimate was for £645,000, which included a profit of £23,826 for contractor Mears.

But the residents said they will contest the cost through solicitors claiming the work is not urgent.

Residents have the right to buy the freehold of their block as a collective if two-thirds of the flats have been sold leasehold.

Limited works

A council spokesman said: “The council is taking the enfranchisement claim seriously.

“At this stage we do not know whether it will complete and have obligations to keep the property in repair.

“We will be seeking to limit the extent of the works, until it is known whether the council remains the landlord or the leaseholders take over.”

He added the claim for enfranchisement is not unprecedented, with 12 buildings in the city previously bought by residents.

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Comments(8)

RottingdeanRant says...
4:29pm Thu 21 Feb 13

Quote 'Until then, council contractors say they must carry out some “essential” work to the blocks to meet legal responsibilities.” I would certainly challenge this statement as I am struggling to imagine what they could be. In fact if they are already in breach of the law maybe the council should be prosecuted for neglect!

NickBtn says...
4:55pm Thu 21 Feb 13

I'd be surprised if the residents couldn't do a cheaper/better job than the council. Then again, lots of work for the residents but I'm sure they prefer to be in charge of their own destiny. Good luck to them

qm says...
5:32pm Thu 21 Feb 13

This reeks of a scam that used to be and possibly still is operated by opportunist investors. A friend of mine owned an apartment in a house in Springfield Road that was divided into three residences all owned by those living in them. The freehold was owned by a parasite and over the course of 20 or so years, maintenance costs equalled the value of the properties. It took a costly protracted court case for them to be able to acquire the freehold! Definitely not fun!

Fight_Back says...
6:36pm Thu 21 Feb 13

Nice to see the council using the usual "Managing Agent" trick of handing the work to one of their mates for an inflated price !

charlie smirke says...
7:07pm Thu 21 Feb 13

Mears are like Laurel & Hardy, only much worse!

Idontbelieveit1948 says...
8:47pm Thu 21 Feb 13

The Greens very own "Mansion Tax"

HJarrs says...
9:04pm Thu 21 Feb 13

Having once lived in a council freehold building, I can definately say it was way cheaper and better value for money than the equivalent private property. But no doubt works were put off and were allowed to build up.

However, if these people are sufficiently motivated then they may be able to do works cheaper, but it is no free lunch. Do they let the property further degenerate because they cannot agree amongst themselves what is to be done? I have known it to be very stressfull for joint freeholders trying to carry out major works, with court action being necessary to extract money from some households. Not something that builds community spirit!

I hope that these people think it through. I thought that they had the right to submit alternative suppliers and costs for works, in which case this may be the best route.

inadaptado says...
9:45am Fri 22 Feb 13

I'm gonna take middle ground here. I think the council is ripping them off with the £725,000 bill, but I also think Park Royal residents would've left the building to rot if this hadn't happened. Also, as HJarrs pointed, it remains to be seen if they manage to agree on the buyout and repairs.

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