Half Year Update

The first six months of 2014 have, in many ways, mirrored the closing months of 2013 for Daisy Estate Managers; fabulous organic growth built on the hard work and success of the previous twelve months, new team members and yet more rainstorms; right up until the end of July!

The company continues to go from strength to strength and has welcomed many new residential estates and a number of commercial developments who have chosen to appoint Daisy Estate Managers for the professional, regulated, estate management service we provide.

Amongst our many new clients this year we are delighted to welcome the stunning Art Deco Suffolk House in Montpellier; The Russells at Broadway, a prestigious mixed residential and commercial development in the heart of the Cotswolds; Pembridge Court, a desirable development in The Park; Osborne House, a stunning Listed building with magnificent presence and many more.

New builds & property conversions

As part of our core business we continue to provide a bespoke service to a number of highly respected property developers and were thrilled to be appointed as agents to two new build developments this year:

River Court is a prestigious development close to Waitrose. Being such an anticipated development the spacious apartments were sold 'off plan' within days of marketing. The developer appointed Daisy to advise on the retention of the freehold, formation of the management company, lease terms, service charges & ground rent, and ultimately, completion and handover of the estate.

Potter House, situated close to the town centre is a mix of new build and conversion finished to the highest standards. Again these apartments were highly sought after due to the superior quality of finish and Daisy were delighted to provide advice to the developer and ultimately manage the estate.

Team Daisy

Customer service remains at the heart of all we do and in order to maintain the high standards we set we are thrilled that four further members of staff have joined us since January. Rachael, an experienced accounts handler; Jacqui a superb PA for Johanne; Bernice who brings years of customer service experience and most recently Barbara, who is well known amongst many of our clients already, having spent years working in estate management at "other" companies in the town.

Future Investment

Daisy is committed to providing our clients with the best estate management experience. We continually review our systems and processes, and with our recent growth have decided to invest significantly in the implementation of a new real time accounting and estate management system. The team are nearing the end of their training on the new systems and we look forward to rolling out the enhanced service imminently.

A few Goodbyes

Recently we have taken the difficult decision not to renew contracts with a handful of smaller blocks where it would appear that their interests may be best served elsewhere. As any estate manager in this profession would testify, block management can be a thankless as well as a highly rewarding task! Virtually each time our phone rings it is to report a lift breakdown, water ingress, a hose pipe dispute (really!) or a similar incident.

Our clients appreciate that in our professional capacity there is only so much we can do; we can produce reports showing the condition of buildings, obtain tenders and commission quality craftsmen. At all times of course we act under the instruction of our clients and the Directors of the estate. If however Directors or lessees decide not to proceed with our recommended reparatory works or chose not to comply with Health & Safety requirements then our hands are tied, and the repercussions for insurance and individual Directors liability may be severe.

Our professional reputation has been hard earned and is of paramount importance to us.

Where such circumstances arise we may, and have regrettably, and after much consideration, decided that such clients are best served by an alternative company.

Debt recovery

For many, including of course some lessees, the after-shocks of the recent recession are still being felt. We continue to work closely with those who are suffering genuine financial hardship and who, as a result, may have been unable to maintain full payment of their service charges. With support of the Directors of those blocks affected we always find a way forward. Unfortunately there remain some who simply either refuse to pay service charges (thereby endangering the maintenance and update of the building), or who simply will not engage in productive communication with us. In these instances our responsibility lies with the block and we have no hesitation in recommending appropriate legal remedies to the Directors concerned.

As a last resort we will, and have on numerous occasions, referred the outstanding service charge or levy debt to solicitors for recovery. In such cases funds have finally been forthcoming and unfortunately the lessees involved have been left with significant additional legal costs.

Should you be experiencing any financial difficulty please do talk to our friendly accounts department who will always try to assist. Ignoring the situation leaves us with no option other than to recommend that recovery is sought either legally or through mortgage companies – both expensive options for the lessees involved.

CPD

As a Fellow of the Royal Institution of Chartered Surveyors Johanne remains professionally and personally committed to keep up to date with rapidly changing legislation, case law precedent and changes in health and safety requirements. For these purposes she continues to regularly attend a variety of industry courses and conferences with the knowledge obtained then shared with the team and placed at the disposal of the Directors of both residential and commercial estates under management.

Major Works

So far Daisy has placed contracts in excess of a quarter of a million pounds in 2014. Many of those blocks that transferred management to us in 2013 had suffered years of neglect with water ingress a common and major issue. An extensive programme of remedial and improvement works were required. Johanne has personally overseen all of these projects, has been actively involved in the specifications of works; obtaining tenders; liaising with Directors project managers, contractors and, where necessary, the planning and conservation departments. With meticulous planning, the assistance of reputable surveyors & craftsmen, the support of her clients and a good wind, all projects continue to be delivered to time and within budget.

The second half of the year looks to be equally busy with a new roof covering, masonry repairs and external re-decoration planned at Cotswold Lodge; internal re-decorations at Tower House; joinery and masonry repairs, (with full external re-decoration) at Weston House; rebuilding of the façade at St Stephens Road; repairs and re-decoration at Osborne House and The Russells, to list just a few of the works planned.

As always, a heartfelt thank you to our reliable and trusted contractors, especially those of you who answer our 2am emergencies!

Commercial Estate Management

Our Commercial Department continues to show excellent growth with a 125% increase in appointments this year alone. Developers and planners continue to favour mixed use developments and with our experience in this field Daisy are pleased to assist.

Earlier this year Johanne was appointed to advise and represent, in negotiations, a prestigious educational establishment who were involved in a sizeable commercial service charge dispute. Such appointments are a credit to our team and illustrate how our reputation has spread within the South West.

Sustainability

We continue in our quest to ensure our working environment is a happy, healthy and enjoyable place to be. We work hard to ensure our carbon footprint is kept to a minimum and the team are committed to finding productive ways to improve both working practices and the effect our business has on the climate.

These values are transferred to all our estates, with our team continually reviewing energy tariffs, government backed insulation offers, efficient use of light and heating, amongst others.

And finally

Thank you for taking the time to catch up with our news; we've enjoyed a busy, productive and rewarding first half of 2014 and are excited at what lies ahead in the second half. All it leaves me to say is a huge thank you to my team, without whom none of this would obviously be possible, similar thanks to our clients for their continued unwavering support and, if you're a potential new client checking out our website please do give us a call, we'd be delighted to hear from you.

With warm wishes

Johanne

Terrorism Insurance – to include or exclude cover?

At a recent AGM one of our clients queried why we include the provision of terrorism cover within their buildings insurance; believing this to be an unnecessary expense. An important decision was reached in the Upper (Lands) Tribunal on 11th June 2014 which is of significant importance to this issue.

The Upper Tribunal is the superior chamber to what was the Leasehold Valuation Tribunal (LVT) and hears the LVT appeals. The decision reached in QDIME LTD v Bath Building (Swindon) Management Company Ltd concerned the Freeholder providing terrorism cover, which was subsequently challenged by the leaseholders as being considered unnecessary and therefore an unreasonable expense.

The freeholder involved was obliged by the terms of the lease to "To keep the Building including the Demised Premises insured to its full reinstatement value against loss or damage by fire and the usual comprehensive risks in accordance with the CML (Council of Mortgage Lenders) recommendations in that respect from time to time and such other risks as the Landlord may in its reasonable discretion think fit to insure against..."

Although "terrorism" or "terrorist activities" are not specified in the CML guidance, it was submitted by the freeholder that the word "explosion" should be given its ordinary meaning and that the ordinary meaning would include explosions caused by terrorist activity. In this regard the freeholder relied upon the definition of "explosion" provided by the Oxford English Dictionary.

In giving Judgment, the Upper Tribunal held in favour of the freeholder, in that the ordinary meaning of the word explosion includes explosions caused by terrorism.

On the basis of this Judgment, property owners responsible for insurance should consider the requirement to obtain terrorism cover. The full decision can be downloaded from: http://www.landstribunal.gov.uk/Aspx/view.aspx?id=1043

New Leasehold Law approved

We are pleased to report that Royal Assent has been given to the Leasehold Reform (Amendment) Act 2014 and that the Bill came into force on 13 May.

Under the new legislation, instead of having to obtain the personal signatures of lessees for Initial Notices in collective enfranchisement claims or for s42 notices for lease extensions, the signature of a duly authorised person, such as a solicitor or attorney, will suffice to replace that of the lessees concerned.

The Act will be of particular benefit to those who are unable to personally sign a notice either due to physical or mental disability, and to those lessees not physically in the country. Previously if a lessee was unable to personally sign such notices they would inevitably miss out.

At just 41 words, the Act is also one of the shortest to come before Parliament for almost a century

Kind regards,

Johanne

Save the Date (again!)

Regular readers will be aware that the long-awaited appeal in the Phillips v Francis matter was scheduled to commence 15 May.

Frustratingly, at that the eleventh hour, the appeal was removed from the Court listing and provisional re-scheduled for a hearing on 13 October!

Until then, the decision of the Chancellor of the High Court still stands. It is therefore imperative that those involved in property and estate management should continue to keep a close eye on their repairs and maintenance budgets, and to take appropriate action where costs reach £250 per lessee.

For practical advice and solutions to any major works or consultation issues, please don’t hesitate to contact our experienced team who will be pleased to help.

Kind regards,

Johanne

Stormy weather

Goodness; when will this weather ever improve?!

Since Christmas Eve it would appear that we have been hit by one storm after another, with what feels like non-stop rain in between. Our Maintenance Team and Surveyors have been on the go constantly, attending multiple incidents of roof damage, a flooded cellar, fallen trees, open windows being torn off (though why anyone would leave a window open in the middle of a storm was beyond us!), blown down fences, damaged cars and so the list goes on. Thankfully our blocks are all protected by excellent insurance cover.

The occurrence that caused the largest “flood” of calls however had to be the loss of TV signal due to aerials being blown down! It seems we really can’t live without our Midsomer Murders!

With this in mind, now would be a good time to check just how comprehensive your own block insurance cover is. For competitive quotes from a number of specialist brokers, contact our team who will be pleased to provide you with a number of options with no obligation.

Kind regards,

Johanne

Phillips v Francis – Appeal scheduled

We are relieved to report that a date has now been set for the appeal in this case. The ruling of the Chancellor of the High Court last year in the Phillips v Francis case created widespread concern throughout the residential block management industry.

Prior to this case, consultation for major works had been carried out on a project by project basis. The decision in Phillips v Francis turned this on its head and created a situation where the costs for all works (both proactive and reactive) were put into one pot.

The repercussions of this decision were enormous and over the last few months it has left industry experts scratching their heads as they struggled to find a way to practically apply the decision.

The appeal will be heard on the 14th and 15th May 2014 and we trust that a pragmatic and sensible decision will be reached. Until (and if) the decision is overturned, we are still bound by the case as it currently stands.

We will update you on the decision later in the year however in the meantime, this case is a timely reminder as to how important it is to keep abreast of regularly changing industry legislation. If your block is contemplating any major works this summer, make sure you receive up to date advice from your managing agent or risk the wrath of any vexatious lessees in your building!

Regards,

Johanne

Winter Woes!

Gale force winds and driving rain have caused havoc in our region over the festive period and New Year. As I write this update on Saturday 25 January I see we remain a hardy bunch in Gloucestershire though, as thousands of dedicated race-goers turn out at Cheltenham’s Prestbury Park in atrocious conditions to enjoy pre-Festival racing, whilst ardent rugby supporters brave the wind and cold at Gloucester’s Kingsholm to watch the England Saxons face the Irish Wolfhounds. And so our wet and windy winter continues.

Although the South West has suffered far less than other parts of the country, we too have seen entire roofs blown off commercial premises in town, falling trees crushing railings and parked cars being damaged by flying debris. The office telephone has rung relentlessly since Christmas Eve with news of building damage and reports of potential insurance claims.

The heavy rain and strong winds, coupled with the unusual direction have brought widespread problems with water ingress within many of our managed properties. Rain has been driven upwards, underneath roofing slates, through trickle vents on double glazed windows, and has crept in through any nook or cranny. Our maintenance contractors have yet again proved how reliable and professional they are, with many turning out on both Christmas Eve and New Years’ day to attend to the most urgent cases; we and the lessees involved thank them enormously for their commitment.

Unfortunately 18 Flood Alert Warnings and 8 Flood Warnings still remain in place in our region, including the River Severn from Tewkesbury to Gloucester, The Rivers Frome and Cam in the Stroud area and the River Avon around Tewkesbury. Updates can be found on the Environmental Agency’s website: www.environment-agency.gov.uk/homeandleisure/floods so please check regularly if your property lies within an affected area.

The Met Office assures us that the heavy rain will clear eastwards shortly, although strong, perhaps at time, gale force winds will linger a while longer. Apparently sunshine is on its way, albeit with an accompanying drop in temperature!

On a brighter note, the bulbs in my garden are poking through, so perhaps spring really is on its way – let’s hope so!

Keep warm, keep dry and please report any maintenance issues to us as soon as possible.

Johanne Coupe