The Warner Estate properties were sold via a subsidiary company to Circle 33 Housing Association. Later many of the flats were sold to another company. Essentially what Circle 33 did was to keep in their ownership properties which are part leasehold, part tenanted. These properties are owned by a Circle 33 subsidiary called Benchlevel.

The properties which are entirely leasehold were transferred to a company called Finalbrief, which was then taken over by a company called Freehold Mangers Nominees. This is a private company with no connection to Circle 33. It is important to know whether your freehold is with Benchlevel or Freehold Managers because this will affect your rights.

Some Benchlevel leaseholders are faced with bills of several thousand pounds for repairs to the properties. I have now seen several cases of people being asked to pay up to £8000 as their contribution towards a new roof for a property. When they have questioned the costs they have found it impossible to get proper answers as to why the estimates are so high. Circle 33 have been asked for an explanation, and also why people who have queried the estimates have been given no answers, but instead have found contractors turning up to erect scaffolding.

Freehold Managers leaseholders have concerns about unnecessarily aggressive letters about their insurance policies, and about quotes they are being given for leasehold extensions or freehold purchase.

The most important thing to realise is that all leaseholders have considerable legal rights, much improved by a new Act of Parliament last year.. If the company offer to sell you the freehold for a particular figure you can just accept it, or refuse (nobody can make you buy), or negotiate with them. What they will not have told you, of course, are the legal rights you have and especially how you can use the Leasehold Valuation Tribunal.

I would strongly advise you to take professional advice before making any commitment to buy a freehold, extend a leasehold, or agree a price for work.

You could seek advice from a solicitor, or from the independent Leasehold Advisory Service.

When these problems first arose I used the opportunity of a general debate in which MPs can raise any issue to discuss what happened to the ex Warner properties. You can read a copy of my speech here.

June 2003

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