Leasehold scandal victims believe council could do more to support them

RESIDENTS trapped in a leasehold scandal dating back more than a decade at Chapelford believe Warrington Borough Council could do more to support them locally.

While Warrington South MP Andy Carter also believes the council could do more to support residents, the council says they have already pledged unanimous solidarity for residents trapped in leasehold properties, and have since refused to work in partnership with developers who continue to sell new-build properties on a leasehold basis.

A total of 47 homeowners at Steinbeck Grange have now been interviewed by the Competition and Markets Authority (CMA) after the watchdog announced it was investigating misselling by Barratt Developments, Britain’s largest housebuilder. The housing estate in Chapelford was completed in 2010, and built by David Wilson Homes (DWH), a brand owned by Barratt. The CMA cannot comment on an ongoing investigation but it is due to report on its findings in the next few months.

One of those affected, Mike Carroll speaking on behalf of residents of Steinbeck Grange said: “The issues I have experienced personally over the years, mirror the majority of the Steinbeck Grange development.

“In December 2008 my wife and I purchased what we thought was our dream home, however, what we didn’t know was that we were tying ourselves into a nightmare that has lasted ever since and the findings since fighting for justice are unbelievable.

“We should have picked up on issues early doors when the sales manager informed us that we needed to utilize a David Wilson Homes conveyancer if we wanted to complete by the end of year sales deadline, however, his rationale appeared plausible.

“Twelve months later, after moving in is when we first became aware of the nightmare unfolding, when we received a threatening letter from a management company we knew nothing about stating that we had sent a cheque that had bounced. Neither my wife nor I knew anything about this firm as no management contract or leasehold information was ever mentioned at the point of sale.

“As a result of this, we went and spoke to the sales manager who sold us the property and was still on the development and requested information about the firm. He informed us that they were the management company that looked after communal areas. When questioned as to why we were not informed about this at the point of sale, he advised us that he did not know and that our solicitor should have made us aware. This being a firm that we were placed under duress to utilise. We then contacted the solicitor only to find that they had gone into liquidation and was no longer operating. Following this, we went back to David Wilson Homes and I was put in contact with their Technical Director whose advice was for me to petition against the contract we were given no information about.

“This petition was completed by 100% of the development and the findings when collating signatures were alarming. Numerous buyers were given no information about their property being leasehold at the point of sale and the vast majority of the development knew nothing about a management contract. What was even more concerning was that when speaking with residents many of them advised me that they had received a threatening letter from a management company that they did not know anything about. When questioning residents about which conveyancing firm they utilised the reply was that they were advised to use a David Wilson Homes solicitor and the reason was so they would be able to complete in time. I can understand helping people out who don’t have a conveyancing firm, but placing buyers under duress in order to strategically deceive them in my opinion is fraud.

“I then started to gather evidence from the development and the findings continued to grow and uncover negligent conduct from the developer. I learned that David Wilson Homes placed buyers under duress to utilize one of 3 conveyancing firms, all 3 of which had failed to provide buyers with information surrounding the lease and management contract, they had also sent out lease documentation to buyers to be signed with a matter of days prior to completion some as in my experience being the day before completion. Furthermore, all three firms had gone into liquidation and ceased trading.

“Upon completion of the petition, it was returned to The Technical Director of David Wilson Homes along with numerous complaints of miss-selling that had already been sent to the MD of David Wilson Homes. Upon receipt of the petition, I was informed by the Technical Director that DWH had sold the freehold and no longer had any legal interest in the development? What a negligent thing to do when in receipt of collective complaints of misselling.

“Since all of this, many years of campaigning began. This consisted of meetings with local MP’s and Councillors as well as Directors of David Wilson Homes who could not answer questions asked of them by residents. This resulted in DWH bringing on board a QC, who is now Barratt Homes General Council. The collective complaints have been continuously dismissed as a collective issue as DWH hides behind Data Protection and the lies of their QC, which is documented in evidence that was sent to parliamentary ministers.

“Over recent years with help from our local MP Andy Carter, liaison with different agencies and individuals has resulted in further findings of negligence and perfidious practices by David Wilson Homes.

“I personally have liaised with the CEO of Simarc who is the freeholder for the development. The CEO informed me that she sympathised with residents from Steinbeck Grange and that she was fully aware of the circumstances of our case. She also informed me that at the time of their acquisition of Steinbeck Grange there was never any mention or information provided to them of the collective complaints that DWH were in receipt of from residents. Furthermore, she also informed me that prior to the CMA launching their investigation into 4 major house builders one of which being Barratt’s/DWH, she was approached by Barratt Homes QC who requested to purchase back the freehold to Steinbeck Grange in order to resolve issues with residents. If this doesn’t question culpability I seriously don’t know what does?

“I’ve also learned that DWH moved on sales staff after they admitted to misselling and not knowing about lease and management contract information prior to houses on Steinbeck Grange being sold, and furthermore that sales staff received cash incentives on successfully recommending conveyancers to buyers.

“I have also spoken with an ex-employee of DWH who has provided information surrounding the sales of properties on Steinbeck Grange, and this individual informed me that residents could not have been made aware of both lease and management contract information, as a conversation was recalled with the sales manager who only became in receipt of this information after the development was sold. The sales manager referred to, admitted this to residents, and was subsequently moved off the development and I believe is no longer employed by DWH.

“Our case is now in the hands of the CMA and has also been published by The Sunday Times. Collectively victims feel that we could do with some more local support, given that the CMA has stated their recent success against other developers has come from support from local councils and consumer bodies. Andy Carter MP has raised our issue in the House of Commons on numerous occasions, yet we have had no support from Warrington Borough Council despite several meetings when being provided false promises.

Meanwhile, Mr Carter said: “There is more the council could do to put pressure on developers to resolve the specific issues in Warrington – for a start off they could make it clear they won’t issue any planning permission to firms who haven’t resolved the misselling issues identified in Steinbeck Grange and elsewhere across Chapelford.
“I’ve managed to get the Competition and Market’s Authority to look at the issues locally, I’m waiting to see the outcome of their report before pushing for further legislative action in Parliament.”

A Warrington Borough Council spokesperson said: “A motion was previously tabled and agreed at full council, pledging unanimous solidarity for residents trapped in leasehold properties, and we have since refused to work in partnership with developers who continue to sell new-build properties on a leasehold basis.
“We would urge residents to engage with their MPs on the issue, who ultimately have the greatest influence on this subject, as Parliament has the ability to consider laws that could be changed to end this practice and to protect homebuyers in future.”

A DWH spokesman said: “All of David Wilson Homes’ leases are designed and intended to be clear and transparent, and all customers were made aware of the leasehold nature of the properties and any management contracts prior to sale.

“We aim to provide all relevant information to our customers at first point of sale and through solicitors prior to exchange of contracts. All customers have access to independent legal advice throughout the purchase process.”

3 years since residents where advised that they where to get the support of @WarringtonBC Yet victims of DWH’s Miss selling on #SteinbeckGrange are still living a nightmare & it turns out that it was all false promise that was made to victims & @NLC_2019 https://t.co/xIy0bFwiA1

— Mike (@Carroll_Mike80) June 10, 2022