Response to Negative Equity - Mortgage given by Royal Bank of Scotlandon ex-local authority flat

My friend had experiences with Property Connections and then David Glass Associates. She purchased a conversion flat. The freeholder sold the freehold to St Marys Estates, who then were taken over by Property Connections and then David Glass Associates. The management and service charges soared. I dealt with Property Connections for a number of years trying to sort out her fees. The management charges soared, they charged numerous amounts for maintenance etc. and did not charge in accordance with the conditions of the lease. I managed to get an associate who lives near Brighton to visit their offices to check invoices etc. for the amounts they were charging as they refused to send them unless we paid a fee. Many mistakes were brought to light. They apoligise for some mistakes and credits were issued, but others were never resolved. I dealt with them and David Glass for over 3 years. Maintenance on the property wasn't carried out (e.g.the property hadn't been painted for 11 years, window frames were rotten). In the end we only paid them in accordance with the conditions of the lease. They kept threatening court action but never did take it. However we contacted many organisations e.g Leasehold Advisory Sevice and put our greviances in writing to the companies and their solicitors. Unfortunately for my friend the situation made her ill, she tried for 2 years to sell the property without success, in the end she voluntary surrendered it to the Building Society. The Building Society sold the property for £10,500, she had paid £24,500 for it 13 years earlier. She was left with a shortfall of £12.4k on this property. In the end because of her financial situation together with other matters she managed to settle with the Building Society for a small proportion of this amount. David Glass got paid the full amount (1.6k) we'd been disputing and willing to go to court over, because the Building Society paid them in order that they could sell the flat. Be careful when dealing with this company, check all the charges, make them prove the amounts they say they have paid out, make sure they are charging you the correct amount and if you don't think they are then let them know and don't pay them. N.B. You should have informed of the sale of the freehold by Lodeday and been given the chance to purchase it. I know the laws have recently changed regarding management of your own flats, not sure of the details though, but its probably worth you checking out(Leashold Advisory Service should be able to help you), as if my friends experience is anything to go by I wouldn't relay on David Glass to maintain the building correctly. I don't know if the above is of any help. Good Luck, you'll need it. Dealing with the Buidling Society regarding the shortfall was brilliant compared with dealing with Property Connections and David Glass.

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