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Leaseholders facing massive repair bills
MP calls for urgent help as extent of debt is revealed
LEASEHOLDERS on the borough’s estates need urgent help with crippling repair bills, MP Karen Buck has insisted, after the staggering scale of money owed was revealed.
The MP for Regent’s Park and Kensington North has revealed there are 142 lessees who have received bills in excess of £50,000, many of which are set to be challenged at the Leasehold Valuation Tribunal.
Another 25 will have to find between £30,000 and £50,000 for maintenance works carried out by the council’s housing arm CityWest Homes.
Ms Buck has written to Housing Minister Ian Austin to alert him to a situation which is causing hardship for hundreds of leaseholders who feel they have been dealt a bad hand by Westminster Council and CityWest for carrying out “shoddy” works.
Her letter says: “Very few lessees are content with the quality of works, the rigour of the contracting process (resulting in what frequently appears to be excessive charges), the overheads charged (which often appear to be double counted, and which are in any event not often reflected in the quality of the contract management) and the transparency of the billing process. Indeed, lessee dissatisfaction with quality and cost is a major block to the completion of outstanding works, to the disadvantage of tenants who have waited years for improvements to their homes.
“The current position for lessees of working age, who are not able to put a charge on their property, is that they are allowed up to five years to pay, with the possibility (but only the possibility) of a further loan at 1% above base rate. In practice, this can mean that a lessee will be required to repay around £700 a month over five years, on top of any mortgage or loans they may already have on their property. I have lessees seeking my help who will have no income left over at all each month after servicing these costs.
“The impact on estates will be to force low-income earner-occupiers out, and put more properties into short-term private letting, which is deeply damaging for the well-being of the community. The need for additional help is absolutely pressing, as final bills have just gone out on the Little Venice estate, which is where the highest charges apply (they include 6, 21-storey tower blocks).”
The council says they are working with leaseholders to try and soften the blow.
Councillor Philippa Roe, Westminster Council’s cabinet member for housing, said: “We are doing everything we can to mitigate the impact of major works bills and depending on their circumstances, leaseholders could be eligible for a number of different payment options or to defer payment to a later date.
“We have held, and will continue to hold, a number of one-to-one surgeries, where residents have the opportunity to talk to us about their individual circumstances and to find out what options are available.
“It is very important to remember, however, that when a leaseholder buys a property, they enter into an agreement to contribute financially towards the cost of repairs, maintenance and improvements to the common areas of their buildings.
“We have made a commitment to help residents and business through this tough economic climate and we will do everything we can to address residents’ concerns over these bills.” |
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