Cladding and owners liquidation?

Cladding and owners liquidation?

17:26 PM, 23rd February 2021, About 4 months ago 1

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A very nice apartment block in one of Surrey’s towns is owned by O&H Ltd. They have applied for administration in June 2020, but not much has been passed onto flat’s leaseholders. However, it looks that the things are going to move.

The main problem of that block is, although it is not high rise it is clad and the balconies have wooden decking (not fire-resistant). Both are a problem, and the cladding makes these apartments unsaleable anyway.

I just need some advice please:

Where do the leaseholders stand in case the owners go into liquidation?

What about mortgages?

Any other problems we should be aware of?

Thank you very much in advance for your thoughts. Any comments and advice will be very helpful indeed.

Whiteskifreak



Comments

by Shining Wit

16:54 PM, 27th February 2021, About 4 months ago

My understanding is that, as leaseholders, you will be liable for the remediation.
If the building is higher than 18m, the owner can apply for a grant to cover the cladding removal (but none of the other fire safety defects), so in your case, you will pay the full bill.
If the building is less than 18m, you will be eligible for a loan (against the property) that you will repay at no more than £50pcm - for about 80 years. If/when you sell, the buyer will probably expect you to discount the price to compensate for the loss (but at least it has been affordable for 80 years, eh).

Until the work is done, the property will probably be given a zero value - so don't try to sell or remortgage - and if its serious, you'll have to pay for 24*7 waking watch or immediately evacuate the building.

It wasn't your fault that the building regs weren't adequate, or applied properly, that the builders took shortcuts to save (them) money, or that the cladding and insulation materials were known to be highly flammable - but as a leaseholder, it's only right that you (rather than any of the culpable parties) pay isn't it.

Good luck. It is a national scandal, which is, only now receiving the media attention it needs - as leaseholders finally discover the true cost - I've seen quotes for over £100,000 per leaseholder, not per building - and these come as Service Charge or Section 20 demands, so you don't have much time to raid the 'piggy bank'. At least it's "affordable" (according to the government).


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