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Is Cornwall Park in danger of a cash flow crisis?
15% of leaseholders have now been forced off their properties with a significant loss in revenue for the park.
New research conducted by the Cornwall Park Leaseholders Association Inc shows the economic policies held by the Cornwall Park Trust Board are no longer financially viable. The research has uncovered the park board is barely covering costs due to its policies which are forcing leaseholders off their properties. Concerned locals are worried about future park maintenance if investments that fund the cash flow dry up.
Will Cornwall Park run out of money?
The Cornwall Park leaseholders association has done an analysis of the public accounts from 2008-2015. Although abbreviated they show a trend which should worry the Trustees of the Cornwall Park Trust Board.
There is a solution that will both solve this problem and improve the Trust’s income, and that is to introduce an option to freehold the properties. And yet the Trust Board refuses to consider it. Why is this? The only possible reason is that they want to drive leaseholders off their properties so they can freehold them without the leaseholders getting anything. The Board denies this but there is no other rational explanation.
After spending huge amounts of money on legal fees fighting the owners, the Trust is now earning a fraction of the leasehold ground rental because the nett house rentals they are getting is only about 40% of the original leasehold asked for.. The owners chose to leave their equity rather than pay a lease figure that increased ten times.
Introducing the Board
The four current trustees are John McConnell (chairman), Adrienne Young Cooper, Keith Smith and John Clark.
The park depends on funds managed by this unelected board of trustees to survive. The trust’s income stream comes from leasing properties. Recent huge increases in lease amounts have forced many leaseholders to abandon their homes and the board is forced to rent them at a loss.