LMW 08

 

Please accept this as a response to the request for further information sent by you to me, on behalf of Elizabeth Hunt, Joint Clerk of the Committee.

 

1) QQ 5-9:

On the Chalcott Estate which is in the London Borough of Camden there are 100 leaseholders among the 750 properties.

The Council is proposing to carry out substantial major works with the purpose of extending the life of the properties by 15 years, currently the Council proposes to spend an average of £154,000 per flat, some of this will be funded via a PFI agreement and will be subject to a cap, more of the works will be funded by other means and will not be subject to capping.

This information is based on statements of truth submitted by council officers to an LVT Tribunal in 2005, supplemented by further updates of meetings between the Council and leaseholders.

 

City West Homes in LB Westminster has confirmed to me that currently 192 leaseholders will be subject to bills of £58,000 for major works.

An officer of City West Homes represents  the Association of ALMOs on the Social Sector Working Party, chaired by LEASE, he commented that this level of bills, if funded by Capital Funding would have no adverse effect on the Community Charge.

 

2) At Q23, Bullsmoor Way in LB Enfield was built circa 1966 using Bison large panel construction methods.

In 1998 there was serious disrepair to the extent that all properties required to be decanted, the cost of the repairs were around £80,000 per property and the issues were aired by means of a Public Enquiry. in 1998.

 

3) QQ29-31, The most obvious example where leaseholders did not have enough equity in their properties has to be the Rowner Estate in Gosport, which has been in the public eye since 1992 and where 300 leaseholders have remained trapped in properties they could not sell, because they were red-lined and because the landlords claimed that they could not afford the costs of demolishing the estate, the preferred option. Following protracted negotiations between the Local Authority and Government officers a plan is due to be announced next month which will allow the 300 leaseholders to be compulsory purchased. Leaseholders expect to achieve £40-£50,000 which will not clear the existing obligations of most of them nor allow any of them to purchase another property.

Broadwater Farm Estate in the LB Haringey is another of the estates which are red-lined and mortgages unobtainable by most regular means.

Mrs Wiltshire who described herself as a retired person is typical of the leaseholders on estates such as this. On receipt of major works bills for £30,000 she felt she could no longer afford to pay her obligations. She was forced to sell to a cash buyer for much less than the price of similar properties in her area. This allowed her to clear her debts but left her homeless and without the means to purchase another property.

I am also aware that there is a growing problem among first time buyers who have over-extended to buy. A number have borrowed further sums in addition to their mortgage and have failed to notify their mortgage companies. They are reluctant to publicise their problems because of this. But for this group the arrival of a major works bill is the last straw and they have no option but to default.

 

I am happy for any of this information to be published.

 

Regards,

 

John Paterson, for the London Leaseholder Network.