We wanted a dream flat but woke up in a nightmare

By Dan Haygarth

Hello,

Today’s Liverpool Daily Post brings you a long read from Liam Thorp. Liam has spoken to a group of leaseholders in central Liverpool whose lives have been turned upside down after being landed with enormous, unexpected bills.

Thanks for reading.

We wanted a dream flat but woke up in a nightmare

A group of flat owners in Liverpool said they woke up in a 'horror story' after each being hit with an unexpected ￡12,000 bill, reports Liam Thorp. The group of residents are all leaseholders for flats within the Arch View Crescent development which lies close to the city's Anglican Cathedral.

The flat block is managed by Onward, with 20 of the apartments owned by leaseholders and the other 30 owned and rented out by the company. A leaseholder is someone who owns a property on a lease.

A number of the leaseholders of Arch View Crescent have been unhappy with this arrangement for some time. They have complained about issues from rats in their bin stores, drunk people entering their buildings through faulty security doors and a badly managed car parking situation that they have to pay for.

All of this was made more painful, they say, when last year the monthly service charge they pay to Onward was hiked from ￡190 to ￡259. But this was nothing on what was to come next.

"In August last year we got what is called a Section 20 notice talking about an agreement for the replacement and/or modernisation of the passenger lifts in the building," explained Mark Lovelady, a 46-year-old who has been a leaseholder in the building for 15 years. "Then in October we got the first mention of a bill of ￡12,270.34 for the lifts."

26-year-old Lucy Tittensor, who leases a flat with her partner Josh Mogan, said: “When we first got hit with a ￡12,000 bill I thought it was a mistake. Then I thought, well this is what we pay a service charge for so of course it will come out of that.

"That’s a massive number anyway. I don’t have ￡12,000. It is a bit surreal really. The attitude from Onward seems completely unsympathetic and unwilling to listen. They are giving politicians answers to everything we say.”

She added: "It is scary. They have said that if we don’t pay they will involve legal proceedings, which could mean that we can’t sell our property if we want to move on. I hate that, it traps you.”

26-year-old Lucy Tittensor, who leases a flat with her partner Josh Mogan, said: “When we first got hit with a ￡12,000 bill I thought it was a mistake. Then I thought, well this is what we pay a service charge for so of course it will come out of that.

"That’s a massive number anyway. I don’t have ￡12,000. It is a bit surreal really. The attitude from Onward seems completely unsympathetic and unwilling to listen. They are giving politicians answers to everything we say.”

She added: "It is scary. They have said that if we don’t pay they will involve legal proceedings, which could mean that we can’t sell our property if we want to move on. I hate that, it traps you.”

In a response, Onward said its decision to replace the lifts at Arch View Crescent came following advice from external specialists. The company said it always carries out a 'thorough tender exercise to ensure the best value for money for leaseholders' and insists they have consulted with the leaseholders about the options and costs involved.?

‘The paint on my windows is already peeling off and it's only been on for five minutes’

After the shock bill came in and after initial representations to Onward went - according to the leaseholders - badly, those affected formed a residents group and have been organising meetings and registering official complaints with the company ever since. They recently met with their local MP Kim Johnson who is backing them.

The lifts issue would be troubling for anyone, but these leaseholders feel particularly aggrieved that it came after what they say is a host of ongoing issues with the building they live in and the company that manages it.

Clive Cook, a 56-year-old who has leased a flat in Arch View Crescent since 2012 explained: "It's not just the lifts. We have had a ￡70 increase in our service charge and we’ve all been frustrated by that because that’s a lot of money. I sent them a message as a leaseholder, which is my right, to break down what the increase was for. They never replied and that was last June so I raised a complaint. I went to the ombudsman, who also said they couldn’t get hold of them. They eventually responded and offered my ￡50 as an apology."

He added: "There are lots of other things, like the car park security, which we pay a lot of money for. ￡30,000 a year in total [between all the flats], but we manage it on our own, we put the cones out ourselves, so what are we paying for exactly?"

Others mentioned an ongoing issue with rats "jumping out of the bins all the time". Mark said: "Yeah I had one jump out and over my shoulder the other day."

Then there is the issue of how their accrued service charge payments have been spent in the past. Mark explained: "We paid ￡76,000 out of the funds we have accrued for the windows of the building to be repainted. The paint on my windows is already peeling off and it's only been on for five minutes. My dad is a painter and decorator by trade and he said it was one of the worst jobs he had ever seen. They had just slapped it on.

"And they took that ￡76k while clearly they knew the lifts issue was coming up as well," added Josh. "They didn’t warn us about it. Since we have talked to them they have made no accommodations to our suggestions. People have suggested different plans such as replacing them in a staggered way. They have decided they want all five lifts replaced in one go."

Lyn Feather, who is a leaseholder but rents her flat in the building out, added: "People who live in the property have been told that they can pay through instalments, but those who don’t have to pay the ￡12,000 in one go. So we’re not being offered that. We have to pay it in one hit.” Lyn added that on top of all of this, leaseholders were hit with an additional ￡377 in extra charges last year because of an underestimated energy bill.

The situation has left the leaseholders of Arch View Crescent feeling scared, angry but also determined. They believe their togetherness and organisation has taken Onward by surprise and has pushed the issue back in terms of timings.

“I think this has surprised Onward," explained Mark. "They said they were going to put the lifts in at the end of January and they haven’t done yet. I think we have held them off, whether we can hold them off much longer I don’t know.”

But while the group are feeling positive about the collective efforts they are putting in, the sense of dread about what these bills could mean for their future is always lurking - as is the anger they feel towards Onward.

“I have no savings," explained Lucy. "I am trying to save at the moment but I am already minus ￡12,000 down. I would like to move out with Josh in two years to a home but we’re not going to be able to do that. This is having such a big impact on our lives."

Another resident, Ms Dooley, added: "I’ve heard horror stories about it but this is the worst one, I never thought going into something like this would mean facing something like this.”

“The stress it puts on you is massive," added Mark. "You wake up thinking about it. We are supposed to feel safe in our home. It makes us feel like we are just walking, talking cash machines to them."?

‘They have got control over what is rightfully yours’

Last week, the Labour government announced plans to ban the creation of new leasehold flats, where third-party landlords known as freeholders own a building and a leaseholder buys the right to occupy a flat in it for a fixed time period. Housing minister Matthew Pennycook said the current system is "inherently unfair" and said reforms are needed to give leaseholders 'better control' over their homes and the costs associated with them."

This news may be welcomed by the leaseholders of Arch View Crescent but it comes too late for them and their current predicament. When asked if their experiences would make them think again about entering such an arrangement a chorus of 'Yes' rings out around the room.

“It makes you feel really angry because they have got control over what is rightfully yours," explains Lyn. Lucy adds: "It just feels like a business to them, a way to make money, but this is about our lives."

Responding to the claims made by the leaseholders, A spokesperson for Onward said: “All leaseholders contribute to the cost of services and a fund that covers maintenance and other planned works in their building. Previous service charge increases were driven by the rise in utility costs, grounds maintenance, and security services. Whilst we always strive to minimise increases, services such as these have become comparatively more expensive to deliver due to economic pressures beyond our control.

“Following advice from external specialists, this year we need to undertake essential works to replace the lifts at Arch View Crescent. Leaseholders will be invoiced for this once the works are complete. We always carry out a thorough tender exercise to ensure the best value for money for leaseholders. In line with Section 20 regulations, we have consulted with leaseholders on the various options available and costs before any works take place.

“We appreciate that this is a significant sum and have been engaging with leaseholders to understand their individual concerns and how we can help them. This includes offering repayment options as an alternative to upfront payment and financial assistance.

“We want to reassure leaseholders that we will investigate the issues mentioned here and if any problems with pests or the painting is identified these will be addressed. We were aware of issues with the door and this has been fixed. We would encourage leaseholders to get in touch to report any concerns to us directly.”?

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