Philips Trust: Yorkshire brothers whose family home was 'stolen' get life-changing Leeds Building Society payout

The property in Dewsbury was put in trust by their mother Mary Ledgard after she was introduced to unregulated advisers by staff at Leeds Building Society, where she had been a loyal customer. She was told the move would protect its value for her two sons John and David.

The property trust ultimately ended up in the hands of a firm called Philips Trust and after Mary's death the home was sold for £180,000 but the money was never given to her sons.

After Philips Trust went into administration in 2022, PTC company director Kay Collins revealed that £800,000 from the sale of three properties - subsequently confirmed to include the Ledgard home - had been used by the company to pay off other debts rather than go to its rightful owners.

It left the brothers without a penny from its sale but after their story was featured in The Yorkshire Post earlier this year, it has now been confirmed that all their money will be returned under a unique voluntary payout scheme for victims from Leeds Building Society, alongside Nottingham and Newcastle Building Societies whose customers were also affected by the Philips Trust issue.

John Ledgard, who works as a salesman, told The Yorkshire Post that finding the news out on Thursday was “very emotional”.

"You just want to tell the world. Family, friends and customers all know about the situation.

"It seems like it is a victory for the small man, it is just unbelievable. My brother is very happy as well.”

He said while the money will make a substantial difference to his life, it will also have a substantial emotional impact.

"It is just such a weight off your shoulders. I had the best sleep on Thursday night for ages.

"I couldn’t wait to tell my mum’s sisters and her best friend. They were all so pleased. It was nice to bring good news and joy to people.”

David Compston, a family friend of the Ledgards who has been assisting them with long-running efforts to recover the money, said he was overjoyed by the outcome.

"I was just euphoric. My partner has been helping me with research and we literally ran around the longue hugging each other. We were dancing in the kitchen.

"My mum knew Mary and they always sent cards to each other were both very religious. I just felt peace for John and his mum and dad. It is closure on something that has broken people.

"There is a lot of emotion around this. But they have only got what is right.”

John said: “I can’t thank David and The Yorkshire Post enough for all the work. Just to see it in writing they will reimburse the full amount was amazing.”

Leeds, Newcastle and Nottingham building societies and seven other smaller mutuals had introduced hundreds of customers to unregulated advisers who sold them family trusts linked to properties and investment schemes for their savings which have since become mired in financial complications.

The assets ultimately ended up in the hands of Philips Trust. It collapsed in 2022 while holding £138m of 2,300 building society customers’ assets including properties in trust and £44m worth of invested savings.

While control of most homes has now been returned to customers, administrators are struggling to recover millions in savings which PTC had passed on to “investment management” firms. It had left many victims fearing they were going to lose everything before Thursday’s announcement.

Brothers were victim of ‘dreadful case’, says LBS boss

Richard Fearon, chief executive of Leeds Building Society, told The Yorkshire Post that what had happened to the Ledgards was a “dreadful case”.

"We will treat that exceptional situation in the same way as a cash investment and give financial support to the family equivalent to the full amount of the net proceeds of the sale.”

Leeds, Nottingham and Newcastle Building Societies will pay 100 per cent of affected customers savings investments as well as up to £2,400 each towards the costs of getting property titles back. The smaller mutuals involved are running their own individual schemes.

Philips Trust did not have a direct relationship with any of the building societies involved but all of its customers were former clients of the Family Trust Corporation who had been introduced to that firm by their building societies.

Mr Fearon also praised The Yorkshire Post’s coverage of the Ledgard case and that of other victims over the past year.

"Your coverage on this has been a great comfort to the people involved that know you are giving it a thorough and fair hearing.”

George Moore, from Halifax, is another Leeds Building Society customer who was affected by the situation.

His home was in trust and he and his wife had to pay £2,400 to get it registered back to them after PTC’s collapse, while £5,000 in life savings was also at risk before Thursday’s announcement.

He has spent several years campaigning alongside other members of the Philips Trust Action Group for money to be reimbursed by building societies.

He said: “It is people power that has got us the result.

"I’m sure we would not have got where we are if not for the action group, the media, the All Party Parliamentary Group and many others.

"I now really hope the instigators of this scandal are brought to justice.”

‘Building societies have shown moral compass’

Another victim of the scandal is retired civil engineer Roger Hall, who was introduced to advisers at the Dinnington branch of Nottingham Building Society.

Mr Hall put a second property he has in Scarborough into a trust along with around £130,000 in savings.

He thanked The Yorkshire Post for its coverage of the issue, which he believes contributed to the decision of the building societies to offer voluntary compensation.

He said: “I was pleasantly surprised by the three building societies’ joint commitment to victims, but it was only a result of the fantastic work done by The Yorkshire Post and other journalists that got them to take the action they have.

"Credit where it is due, building societies have shown they do have a moral compass.”