Couple Sentenced For Defrauding Neighbours Of Freehold Share

Housebound: Dagg

A couple defrauded their upstairs neighbours out of their freehold share then charged £60,000 for use of the stairs up to their flat, a court heard.

Retired Douglas Dagg, 72, and Julie Green, 70, also extended their own lease for free, but charged the couple above £24,500 to do the same thing.

“People should have been treated well as neighbours. You were both extremely mean and made living in that building a complete nightmare,” said Judge Owen Davies QC.

“Your neighbour upstairs had years and years of misery, including arguments over communal parts of the building you were trying to prevent other people using or charge them.

“You extended your own lease for free, but tried to charge large sums of money to extend the other leaseholders. The atmosphere in that house must have been terrible for years and neither of you have the slightest remorse for what you have done.”

They both pleaded guilty to one count of fraud by abuse of position, namely transferring the freehold of the property in Durand Gardens, Stockwell to themselves and were sentenced to 16 months imprisonment, suspended for 12 months.

Court Date: Green 

Judge Davies ordered they must also pay the £16,000 legal bill of their upstairs and downstairs neighbours for restoring the freehold share. “I see no reason why these defendants should not pay the entirety of the costs to the victims of their wrongdoing.”

He also ordered they pay £2,000 compensation each to Bradley Burden and Marc Todd. “I want to reflect in a small measure the misery you have subjected your victims to.”

The couple claim downstairs flat leaseholder Mr. Todd was a buy to let landlord, who failed to contribute to running costs as did upstairs couple Mr. Burden and partner Lisa Clayton.

“The fact the freehold devolved to us looks terrible on paper, but they were not paying their bills, which was mostly insurance,” said retired market researcher Green from the couple’s flat in the leafy Stockwell Park Conservation Area.

“The judge really had a downer on us that we were greedy and nasty, which isn’t the case,” said her housebound partner Dagg, a former factory boss. “We have been left with a twenty thousand pound bill, which is more than we can possibly afford.”

Prosecutor Mr. Oliver Newman told Inner London Crown Court Green was the company director and Dagg the company secretary of Durand 42 Ltd. 

“In October 2010 they took complete ownership of all shares in the company and were sending the other flats invoices for work and there was a substantial management fee.

£60K: Stairway To Hell

“They said Mr. Burden and Ms Clayton had no right to cross the landing outside their flat to access the stairs and demanded sixty thousand pounds to grant access to the top floor.”

In his victim impact statement first-time buyer Mr. Burden said: “This has had a negative impact on our lives, health and well-being for ten years.

“We had regular threatening correspondence, demands for payment and told we had no rights to the common parts of the building.

“There were barricades blocking communal areas and exits and our post was taken and found in Douglas and Julie’s flat. We were fearful and intimidates and scared to return home.”

The couple did not pay the fees for stair access or lease extension.

Dispute: Durand Gardens

Mr. Newman added: “They were a young couple, purchasing their first flat, had their first child and were unable to sell and move on to a house and were at the mercy of the defendants because they took over the freehold.” 

Green, who says the couple will probably have to sell-up to pay the money, added: “We were astonished the police were involved. They came here at 8am with a search warrant.”

Dagg said: “We were paying their insurance, we did not make any money out of it. We wanted to tend to the leases because they were so badly written up.

“They were all Buy To Let and they have not lost out. Upstairs rented the flat out regularly for £400-500 per week and that was contrary to the lease.”