EMAIL From: Mike Chitty, To: James Kersh
Sent: Thursday, May 26, 2005 9:00 AM

Dear Mr Kersh,

Yes, a statement of your company's role in this matter would be very much appreciated.

As you are no doubt aware - judging from the number of people who have contacted me saying that they have spoken to you or one of your colleagues - your company is not very popular in Wavertree Garden Suburb at the present time. Residents - many of whom have lived in the area for 30 years or more, and remember past battles with 'rogue freeholders' and/or head-leaseholders, see you as collaborating with and assisting a company (Merchant Estate Ltd) who seem to have little appreciation of the history of the area and little idea of what they actually own.

The pattern seems to be that Merchant Estate, through their surveyor Mr Nigel Bone, make an 'offer' to sell part of a private garden to the person who may well already own it, threaten them with £500 legal expenses on top of whatever price is agreed, and implicitly - thanks to your programme of public auctions - threaten them with confiscation of the land and its handing-over to a third party (who, in the words of your staff as reported to me, 'can do whatever they want with the land'). This situation seems to have arisen because many of the leases - although the subject of clear documentation which is in the hands of the residents concerned - were created many years ago and have, as a result, not been notified to the Land Registry. Even some titles which have been registered - such as the one for the side garden of 26 Fieldway referred to in my previous email - are apparently invisible to Merchant Estate Ltd, Mr Bone and yourselves.

It seems quite wrong that you are creating unnecessary worry in the minds of local residents, and persuading some of them to part with money without good reason. The prices quoted by Merchant Estate/Nigel Bone for purchase of the freehold by existing leaseholders seem well in excess of the fair market rate, based on the length of lease remaining (about 905 years in most cases) and the £8 or so fixed ground rent payable per annum. When previous companies (e.g. Namegrove Ltd circa 1979) behaved similarly badly towards the leaseholders, the local Member of Parliament became involved and the companies concerned very rapidly backed down. Those residents who have sought legal advice more recently have been told that they have nothing to fear; but of course even obtaining such advice can cost money, and some - who may wish to sell their home in the near future - may still worry about prospective purchasers being put off by any sort of dispute over their title to the property.

Residents are also very disappointed that you have been offering various pieces of land on the open market which are really of no use to anyone other than the immediate neighbours. These people, even if they do not have documentary evidence of title, may have acquired an interest through cultivating the land for many years - and at the very least have a legal right of way over some of the 'strips' referred to in your catalogue. They also wonder on what basis your 'guide prices' have been calculated.

... continued