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  • Leasehold Property

    Cladding and leaseholders

    Hi all 

    I am in the process of buying a 2 beds flat in central Manchester however my solicitor just notify me that a recladding project is expected. No indication whether this will be charged through service charge or if the developer will cover the cost. 
    What is your view on this ? Is it too risky to go ahead or should i drop the offer accordingly ?  
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    Leave well alone or it will almost certainly prove very expensive to you, cladding or no cladding. If the 'managing agent' is RMG, or even if not, I'd recommend that you join Facebook's 'RMG- Residential Management rip off...' Leasehold leads to misery.

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    Do not buy it, unless you specifically seen a written contract that says developer will cover it and you are sure that the developer is not going go into liquidation. If the flats are designated for social housing then there is a chance a government grant is available, otherwise assume that each lessee will be forking out another 30k for this
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    Personally i’d walk away, but if you can negotiate a very substantial discount then maybe consider continuing. The whole cladding/fire safety question is going to be a big thing once grenfell is resolved , new building regs ( likely to be retrospective) and the response from insurers is going to be a huge issue for all flat owners in the future, both in terms of improvement works and ongoing maintenance and service charges.

    An ex council block near me is plagued by nuisance/malicious fires ( invicta house margate) , it aledgedly complies with fire regs , but is undergoing additional works and has security to try and prevent the idiocy of human nature. With the “safety is paramount” attitude we have these days the costs associated with human behaviour are going to be horrendous let alone those associated with the fabric of a building.
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    Cladding/recladding will come under the Major Works Charges part of the Service Charge payable by Leaseholders - so is likely to cost tens of thousands per flat.

    Recent Guardian article flagged a London Council block leaseholder being asked to pay £146,000 for recladding works!


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    Thanks a lot 
    reading the lease , leaseholders are not responsible for the external maintenance . So no direct contribution should expected. However it can come via the service charge .... 
    i will dig further and decide
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    The decision was made for me it seems .... the lender surveyor's decided that the property was unmortgageable ...

    game over

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    Mortgage providers and insurers , will be very much in control, new lending and policies for buidings with any doubt as to their condition/fire safety/ regulatory compliance etc is going to be very difficult to find.
    Until such time as the Grenfell inquiry concludes and its conclusions dealt with in legislation and then applied, huge amounts of property is going to be problematic. It’ll also lead to a reduction in the availability of surveyors/ engineers/ architects / designers etc as and when insurers curtail the professional indemnity insurance they issue, and those that remain will be ever more cautious in what they do.

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