Property cases can be complex and throw up investigation work – it is often careful planning and working well with others that produce results. Planning and a logical methodology are key to ensuring a successful outcome. We are seeing many more complex property-based cases which involve more than just selling a property. The pandemic will give rise to many landlord/tenant disputes and instances where investors in property will need considerable help from advisers to recover monies.
Moore Kingston Smith’s business recovery and insolvency experts can help to unravel the complex debt webs which can arise in these cases.
Case study – too many bank accounts
The Company was a property management agent which managed approximately 200 blocks of flats and 6,000 individual leaseholders. Part of the Company’s duties were to collect ground rent and service charges, deduct their fees and send the balance to the freeholders of the blocks, while also maintaining a reserve fund for the leaseholders.
The Company was required to operate a ring-fenced client account for each individual block, ensuring that the monies they collected were correctly accounted for and held in Trust. However, it later transpired that the Company had been mismanaging its Trust monies for many years and a significant deficit had arisen.
The Company’s directors decided to place the Company into Creditors’ Voluntary Liquidation and a partner in this firm was appointed Liquidator at a meeting of creditors.
After incurring significant losses and poor quality of service from the Company, the creditors (freeholders) required new management agents to be appointed swiftly and to begin handling their accounts in the proper fashion expected. We recognised this need and designated resources to ensure the Company’s software provider’s data, bank statements, and refunds were supplied to the freeholders and their new management agents as soon as possible.
The Company operated around 400 bank accounts. Some of the Company’s accounts still had Trust monies in them, requiring a significant reconciliation exercise to determine who the Trust monies belonged to. Freeholders were contacted and the money was returned. Over 90% of the money owed has been repaid to date.
So how did I do in 2021? – another impossible year to predict
And so for 2022: