| Freshstart Living / Fresh Start |
| Selling property they do not own |
| 9th of Mar, 2012 by Not Freshstart Living |
FreshStart Living has pledged to return money handed over by customers
Thebusinessdesk.com
By Mike Fahy
AMBITIOUS developer FreshStart Living has pledged to return money handed over by customers after the collapse of one its property deals.
The Salford company, which last week announced plans to raise up to £50m from a stock market flotation, exchanged contracts on a portfolio of 77 houses in Greater Manchester which were in receivership. However, its own deal with the receivers fell through.
A sister company, FS Properties Issler Ltd, exchanged contracts with buyers in the run-up to Christmas and urged several clients to place deposit monies in solicitors' client accounts on the first working day of the New Year - January 4.
Despite this, it then failed to complete its own deal with Deloitte, which was acting as Law of Property Act receivers for the portfolio.
FreshStart Living chief executive Charlie Cunningham said that it failed to complete the deal with receivers as an issue arose over stamp duty payments which made it less attractive.
He added that FreshStart clients who have already exchanged contracts for the properties have either already been paid or will be repaid.
"The only people who have lost money in this is FreshStart Living," he added.
Mr Cunningham, 33, who has joined from London-based corporate broker FinnCap, has expressed his confidence in being able to achieve a stock market flotation of the business this year for a value of up to £50m.
Until last year Fresh Start Living Ltd and several sister firms were run by Salford businessman Andrew Camilleri.
He resigned in January 2011 three months prior to being declared bankrupt. Companies House records show that the business is now owned by Alan Pierce, who is related to Mr Camilleri.
Currently, Fresh Start Living Ltd and at least 25 other active firms with a Fresh Start Living or FSL Properties prefix are being run by sole director Philip Wright, who was previously a director of Salford-based developer Wrightchoice Developments before it was placed into liquidation last year.
A statement of affairs provided by Mr Wright to liquidators Cooper Williamson shows that it owed £4.2m to creditors - £2.1m to trade creditors, around £686,000 to HMRC and just over £1m to Fresh Start Living Ltd.
Mr Cunningham told TheBusinessDesk.com that part of his new role "is getting the company and its accounts in shape where it is ready for an IPO".
This will include the creation and filing of new group accounts.
"As it stands, we wouldn't view it as suitable (for flotation), but by the time we've done everything we've planned we think there will be a very compelling case for investors."
Mr Cunningham said that he has floated 50-60 small cap companies on AIM in recent years and is confident about the prospects for FreshStart.
"A lot of people I've spoken to in the City are very interested in this as an investment," he added. |
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| FS took £43k of us for 3 student pods in Montgomery House Manchester that turned out not to exist and are refusing to return our money coming up with all sorts of bull about selling them on and giving us a profit but seven months later and nothing has happened and they don’t even acknowledge or take emails or phone calls now. Also I believe the two sets of solicitors involved Gateleys and Stephensons have not acted in good faith in this transaction and its aftermath which is very worrying for investors. |
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| I am so sad that this company is still going. While the director swanned about in a Bentley, investors, lenders, solicitors - and big institutions at that - are being played off against each other. These buildings do exist. But they are not owned nor do they have planning. It is all down to getting enough deposits in and selling off plan, without even lifting a trowel. I am amazed at this new guy thinking he can float this company. Unless he has a major overhaul in mind of the scandalous practices that occur there. People are declared bankrupt - that is not to say they have nothing. They reinvent themselves in another guise and do what they know best. Ripping off punters, staff and apparently the Manchester Evening News thinkls the sun shines. It was a scam and it will be a scam. The projections are good but greed always gets in the way. DO your homework. Don't part with any money unless it is in your solicitors account. Have fun. |
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| It's about time they cleaned up their act, and Charlies got quite a job on his hand to ensure that current dissapointed and angry investors get their hard earned cash back. I think he's bitten off more than he can chew ... there's a recession on and investors are more determined than ever to reclaim their money. I feel their day has almost come to an end ... I for one, and I know there are many more like me will not be happy until paid up. If not then I am more than prepaired for a battle, the days of putting things like this to one side and moving on are over . |
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Fresh Start cheated a lot of investors, how can a company like this get floatation? I paid deposit to this company in the July of 2011 for their so called development in Nottingham, but their sales director Paul Walker refused to write down the exact date of the completion on the reservation form they offerred me, and also refused to pay me back my deposit even they can not finish the student house in Nottingham in August 2012 as they promised.
The reason they refused to give me my money back is that they didnt fail to deliver, but if there is no date of completion, they will never FAIL TO DELIVER. According to the information I got, when they sold the property, they didnt have both the planning permision and the ownership of the property. I put a post on the forum of Residential Landlord about my experience with Fresh Start, but their people asked me to take it off by threaten me their legal team was not happy about it.
English is not my native language, maybe the word I used in the post is not very suitable, but now I am writing a report to the local government in China about this company and my experience, definitely this time there will be no misunderstanding, because I am using my own language, and, the most important, I am telling the FACT, before truth, wording or grammatic issue can not be the excuse of lying.
If someboy can help me to get my money back, please contact me on:
[email protected]
or call me on me mobile in China: 0086-13113310382 |
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I need advice!!
In October 2011 I agreed to buy two properties put to me by Property Secrets that were part of what they called their North West Portfolio. They were part of the portfolio mentioned at the start of this thread. I paid over £8, 400 to Property Secrets to reserve them: £2, 400 covered the finders fees for the two properties and £3, 000 was for their developer which turned out to be Fresh Start Living.
Several completion dates promised came and went and then Fresh Start reported that the deal on the portfolio had fallen apart and therefore we weren't going to complete on the properties despite exchanging contracts some months earlier.
I paid the whole £8, 400 to Property Secrets and they will have passed £6, 000 to Fresh Start in order for them to talk to my solicitor. Neither are willing to give any money back. Fresh Start now say I should go through Property Secrets, although one of their staff wrote a letter at the end of March promising a transfer of £3, 000 on 4th June which never materialised. Incidentally, that staff member apparently got up from her desk one day and was never seen again!
Property Secrets have offered to allow the £2, 400 to be used for another deal, but are unwilling to refund the money. That position was after saying that they would and then stringing me along for several weeks once I asked for it.
What should I do?
Do I take Property Secrets to court for the full amount?
Do I make a claim against both of them?
Who is liable?
And how is it that Fresh Start can exchange contracts on the properties and then not complete? I see now that they must have had an option to purchase or something, but how can they exchange without being the owners?
Any thoughts would be appreciated. |
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| Does anyone know if there is any work being done on Trafford Press or Empress Mill in Manchester? I was there yesterday and it looks just like it did 6 months ago? All the construction updates have been removed from the Freshstart Living website. |
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I have set out below a factual summary of my dealings with Fresh Start, which gave rise to my frustration.
• In the summer of 2011, I was considering purchasing the leasehold title in 5 units at a property known as Victoria House, Milton Street, Nottingham (“Victoria House”) from Fresh Start Living.
• On 30 June 2011 a Fresh Start salesman confirmed to me by way of e-mail that Fresh Start had just acquired Victoria House. I understood from this that they had acquired the freehold title in that property.
• Fresh Start also stated in their e-mail to me of 30 June 2011 that exchange of contracts on the units could take place within 21 days, with completion in December 2011.
• On this basis, I entered into a Reservation Agreement with Fresh Start Living on 07th July 2011 in relation to units 616-620, Victoria House. I also paid a reservation fee of £15, 000 to Fresh Start in respect of those properties.
• To date, I have not received any valid documentation from Fresh Start for the exchange of contracts in relation to the purchase of the leasehold in those properties.
• I have since learned that at the time Fresh Start entered into the Reservation Agreement, it did not actually own the freehold title in Victoria House, nor, so far as I am aware, did it have any contractual right to purchase the freehold in that property.
• The Reservation Agreement provides that if Fresh Start and/or one of its development companies fails to complete on the sale of the freehold, the potential investor (ie me) is entitled to a refund of the reservation fee.
• Given that I believed I would have exchanged contracts within 3 weeks of signing the Reservation Agreement, or soon thereafter, and several months have now elapsed seemingly without Fresh Start having completed on the purchase of the freehold of Victoria House, or being in a position to exchange contracts for the leasehold of the relevant units, I have sought recovery of the £15, 000 reservation fee I paid pursuant to the Reservation Agreement.
• To date, Fresh Start have refused to refund the Reservation Fee to me. They say that there was no contractual obligation on them pursuant to the Reservation Agreement to be the freehold owner of Victoria House at the time the Reservation Agreement was entered. They also say that no time frame is stipulated in the Reservation Agreement for exchange of contracts in relation to the purchase of the leasehold title in the relevant units. Fresh Start say that this is because they cannot stipulate when they may be in a position to exchange contracts in case their purchase of the freehold is delayed.
• I am very upset and frustrated that Fresh Start have now been in possession of £15, 000 of my money for in excess of 7 months seemingly without being in a position to progress the sale of the leasehold titles referred to in the Reservation Agreement, but have stated that they are not prepared to refund that £15, 000 to me. In my opinion, it is completely unreasonable for them to retain my £15, 000 for a seemingly indeterminate period. Based on the above facts, I am very concerned that I will not recover my £15, 000, nor will the purchase of the leasehold properties proceed and I will be considerably out of pocket. |
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This company asked one of their staff named as Nichols to sign and promise me to return my deposit on 16th May 2012. And promised us that the 3000 pounds cheque would be issued on 13th July 2012. However, they are avoiding to talk to me now, and consequently I haven't received my money!
Only those who took them to the court have received their money, so please do not waist your time to discuss with them about your money, we need to sue them directly.
I will disclose the record of my emails exchange with this company, you will see how they use their common tactics to cheat us. I hope this will be helpful for those who are planning to purchase properties from them.
I'm not afraid that this company will give me trouble! as a foreigner, I have international protection here. my friend also put deposit for several apartments, his case has already reported to relevant Chinese Representatives here and this company will not at least find a marketing channel in our country.
I'm observing their movements!
We have warned Chinese investors on www.6688.la website, we will disclose more pics about their properties soon. |
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i have the letter from FSL that confirmed I should receive the money on 13th July, but i haven’t received anything from them.
Another news is that I was told that the company just changed their director. And this is another excuse from them to explain the reason why they haven’t refund my money.
FSL asked me to wait for another money. Whatever, i have been waiting for over 12 months, and do not care another month. I will let you guys know if I receive the money by then.
Good luck all |
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Bispham House Liverpool
I need to tell you the truth here that i’m a owner of a property here. no management company here!!! so do not pay any management fees to them.
I was away from liverpool over 6 month last year, and paid them management fees over 360 pounds. When i returned to Bispham house in 2012, i found that they are not managing this building at all.
The cleaner here is not working for Bispham house management !!!
So if you pay them management fees, they will just took it away!
I believe some other companies will take over the management.
if you want to know more please contact me via email
[email protected]
If freshstart still not return my 3000 pounds deposit back, i will disclose more details of this company. |
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Really dishonest and unethical company. My advice is to stay far far away. Perhaps even leave the planet earth.
I lost tens of thousands.
They have failed to deliver on selling property they don't even own, then they try to keep your deposit money under the guise of you signing a "non refundable" deposit.
Google the complaints and ignore most of the good posts, it looks like a internet reputation agency has been trying to bury all negative comments. |
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If I went into BMW for a new car, say an M535; sales rep tells me they are in stock out the back, just being prepped and if I signed a non refundable deposit, come back on Friday next week, pay the balance and drive off in it then obviously I would.
If, when I went back to pay the balance and drive away my new car I was told they never had that model in stock and could I wait INDEFINITELY, just in case at some time in the distant future they MAY be able to sell me one, then I would go ballistic and tell them where to go. Probably kicking a few cars on the way out!
This is effectively what has happened to many of us, this is why we are so angry. Through no fault of our own, no transaction has occurred (for over ONE YEAR) and may NEVER occur.
In real life BMW (or any other reputable business) are duty bound (legally, ethically and morally) to issue a refund. They would apologise profusely for the salesmans untruths, the delays and promptly refund your money, with plenty of grovelling. It only make sound business sense. Reputation is everything. (That’s why people pay internet reputation agencies to post up good comments under many different names).
Fresh Start Living are witholding this deposit money despite not being able to offer the product they promised. They ignore calls, letters and emails and block us from their website.
It is not us messing them around or being naive investors. It is them acting dishonestly by foolishly attempting to withold our money, when they have clearly acted (IMHO) fraudulently.
I HOPE YOU NOW HAVE A SLIGHT IDEA OF WHAT MANY OF US ARE BITCHING ON ABOUT…….
- Unless you are an FSL stooge that is. |
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They do not provide proof of ownership for ALL their developments.
For example, they do not own Victoria House but they told us they did BEFOREwe agreed to purchase. They told us it was almost complete and the deal would go through very quickly. They clearly defined dates to exchange and to complete on.
Over ONE YEAR later they still don’t even own the building.
Now they refuse to refund our deposits on a property they may NEVER even own. Should we just let them keep our deposits? Would you? In our opinion they obtained our money by deception which is FRAUD and are acting dishonestly.
I suspect you made that post on their behalf, as you clearly know nothing about what is going on with ALL of their “developments”. We wanted to purchase (as promised) but were unable to.
Also their website is now closed, except to “serious investors”. We are no longer allowed access to look at it! Only “new investors” can see it – Hardly transparent. I asked to get access but no response from them.
Please don’t mis-lead people to invest by recommending this company.
People should know all the facts.
Firstly, we suspect most of the positive posts have been put up by company stooges, as they never mention which units they purchased or how to get in contact with them, seem to all come from the same area and only 1 post. This all smells very fishy to the rest of us. |
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Office of Fair Trading - Property Selling
OFT publishes new guidance on property sales
13 September 2012
The OFT has today published guidance to help estate agents and others involved in property sales understand their responsibilities under consumer and business protection regulations.
It is aimed at all property sales businesses, from estate agents and property developers to intermediate websites that facilitate contact between buyers and sellers.
The guidance identifies examples of trading practices that could breach the regulations and includes practical steps that property sales businesses can take to comply with the law, for example:
Ensuring that any information provided, whether in writing, in pictures or given verbally, is accurate when advertising for new business or when marketing property. Breaches of the regulations might include falsely claiming to be a member of a professional body, misdescribing a property for sale or making unfair comparisons with competitors.
Not leaving out important information that consumers need to make informed decisions. For example, throughout the buying and selling process, businesses must provide the necessary information to enable informed choices to be made on viewing a property, making an offer or instructing conveyancers or surveyors.
Not putting undue pressure on consumers to act quickly, for example to put in an offer, raise their price, skip the survey or exchange contracts.
Having an effective customer complaints procedure that is understood and followed by all staff who come into contact with the public.
The guidance specifically covers two pieces of existing legislation:
Consumer Protection from Unfair Trading Regulations 2008 (CPRs) and the Business Protection from Misleading Marketing Regulations 2008 (BPRs).
Non-compliance with the CPRs and BPRs may lead to enforcement action under the Enterprise Act 2002. This could see a trader give undertakings, or be subject to civil court proceedings, to stop breaching the regulations. It may also lead to criminal enforcement action, an unlimited fine and up to two years' imprisonment for a conviction in the Crown Court (or Sheriff Court in Scotland).
The guidance will assist traders and others (including enforcers and consumer advisers), especially in light of the Department for Business Innovation and Skill's announcement today that the government intends to repeal the Property Misdescriptions Act 1991, which has largely been superseded by the CPRs and BPRs.
Cavendish Elithorn, Senior Director of the OFT's Goods and Consumer Group, said:
'Buying and selling a property is usually one of the biggest purchases we make and can also be one of the most stressful. Unfair business practices can cause substantial losses or frustration to buyers and sellers either when transactions collapse or afterwards when the truth is uncovered.
'In response to feedback, this guidance has been developed with help from the property sales industry and Trading Standards Services, to provide clear and comprehensive, but practical, advice.'
See the property sales guidance overview or download the full guidance on property sales from the OFT website.
Consumers concerned about the practices of an estate agent or other property sales business can contact Citizens Advice's consumer helpline on 0845 040506.
Alternatively, complaints which consumers have not been able to resolve with the estate agent can be taken to an OFT-approved redress scheme. All estate agents must be registered with either the Property Ombudsman - call (01722 333306) or Ombudsman Services: Property - call (01925 530270).
NOTES
The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) specifically prohibit traders in all sectors from using unfair commercial practices in their dealings with (non-business) consumers. The CPRs therefore prohibit property sales businesses from engaging in commercial practices that are unfair to sellers, buyers, potential sellers or potential buyers of residential property.
The Business Protection from Misleading Marketing Regulations 2008 (BPRs) specifically prohibit traders in all sectors from using misleading practices in their business-to-business advertisements. The BPRs therefore prohibit property sales businesses from using misleading marketing when they advertise services to potential business clients or market commercial property for sale. This includes unfair comparative advertising.
Currently, the Property Misdescriptions Act (PMA) 1991 is often used to address problems arising in this sector although the Department for Business Innovation and Skills (BIS) considers it has largely been superseded by the CPRs and BPRs. BIS consulted on the PMA and has today announced the government's intention to repeal the Act.
The guidance was developed following the OFT's Home Buying and Selling market study, which found that many estate agents said the industry needed more guidance on the law.
See the Home Buying and Selling study 2010.
The OFT, Local Authority Trading Standards Services and the Department of Enterprise, Trade and Investment in Northern Ireland have a duty to enforce these regulations. |
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Bispham House is still remain the same poor maintainance. Half completed buiding for over 2 years, nothing changed.
Especially the building is still not under management. |
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Really dishonest and unethical company. My advice is to stay far far away. Perhaps even leave the planet earth.
I lost tens of thousands.
In my case; They have failed to deliver on selling property they categorically stated (in writing) they owned but DID NOT OWN (Victoria House, Milton Street, Nottingham - Check the land registry). Now, they are trying to keep my deposit money under the guise of signing a “non refundable” deposit.
They said they owned the property, conversion was almost complete and we would exchange contracts in a few weeks and complete before the end of LAST YEAR. It turned out that they NEVER even owned the property in the first place. They now expect to keep my deposit (and many others that I am in direct contact with) in case they might be able to purchase this property at some undefined point of time in the future. Totally unacceptable and unreasonable in the eyes of the law.
They obtained "deposit" money from me by MIS-REPRESENTING THE FACT THAT THEY OWNED THE BUILDING and REPRESENTED AN UNREALISTIC TIMESCALE FOR PURCHASE. I relied upon their representations prior to signing the purchase agreement. This was, in the opinion of my solicitor; either negligent or Fraudulent behaviour. You decide.
Now, after spectacularly failing to obtain the freehold to the property for over ONE YEAR and after ignoring most of our phone calls and emails they expect to keep our money?
Disgusting and outrageous behaviour. Not a reputable company at all.
They have acted despicably after their mistakes and refuse to pay us back the deposits that you owe us. |
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If you believe you are the victim of financial wrongdoing, write to;
Tony Hetherington at Financial Mail, 2 Derry Street, London W8 5TS. |
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| There is not any work in Empress Mill Trafford. They cheated us, they have not permission to reconstruct this building. We need to go to court, cause its no point to waste time and trust them. If all customers gathered we can use legal action against them. |
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Hi all,
We've had the following request from The Times newspaper aimed at anyone affected.
I am a journalist for The Times and I am interested in hearing from people who have invested in 'student pods' through companies like Fresh Start Living. Please contact me at [email protected]
Leah |
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Montgomery House landlords are taking action against Fresh Start Living who are failing to honour their rental guarantee agreements. A number of landlords have received nothing since June 2012!!
This situation is alarming as we understand that all pods in the property are currently rented out to students, many of whom have handed over rents for the entire academic year to Fresh Start.
However Fresh Start appear to have so far pocketed the money as many landlords have either received bad cheques or are being fobbed off with the following excuses - promises to pay by the end of the week; computer systems failure; or blaming individual employees as dishonest, incompetent or both!
If you have had similar experiences with this company please contact us via
"I am a journalist for The Times and I am interested in hearing from people who have invested in 'student pods' through companies like Fresh Start Living. Please contact me at [email protected] |
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