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Leaseholders face £2m bill to replace cladding
Leaseholders in south London have hit out after discovering they could face a £2m bill to replace cladding on a privately owned tower block.
Firstport, the property company that manages the Citiscape block in Croydon on behalf of Proxima Properties, is seeking confirmation through a first-tier tribunal to charge the leaseholders the cost of removing and replacing cladding, which it has estimated will cost between £1.8m and £2m. The bill for each leaseholder will depend on the size of their flat but could come to an average of more than £21,000.
A spokesperson for Firstport said there had been no guidance from government on “how the costs of re-cladding and other fire safety measures should be met, or on whether funding or other support can be made available to affected leaseholders”.
He added that the need for “clarity” on any support that could be offered “is now pressing”.
In a letter to local MP Steve Reed Firstport said Barratt Homes, which built the block, and Proxima Properties, the owner of the block, claim they are not liable to cover the costs. Inside Housing understands Barratt Homes employed independent fire engineers to check the block, who said the cladding was compliant with building regulations when the block was completed in 2001.
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In a letter sent to residents last week, Firstport said: “We know that this work and the costs are unwelcome. However, as your property manager, our first priority has to be your safety.”
There are already fire wardens carrying out 24-hour monitoring of the block.
But several leaseholders told Inside Housing they cannot afford to pay the unexpected bill. Anuj Vats, a leaseholder in the block, said: “It’s five or six months’ salary for me. If they’re asking me to take six months’ salary from my whole year, where would I get that money from? On top of paying my mortgage and living expenses in London.”
Another resident is 95 years old and has lived in the block since 2004. His son, Richard, said his only income is the state pension and expecting his father to pay the “horrendous” cladding costs is “unreasonable”.
The government has said private landlords should not charge leaseholders for any fire safety work that needs to be carried out following the Grenfell Tower fire seven months ago.
Last month housing secretary Sajid Javid said social landlords “have made clear that they will not be passing on the costs and that is the right approach”.
He added: “For the private sector landlords I would like to see them follow the lead of the social sector and not pass on the costs to their tenants.”
A Firstport spokesperson said: “We are working hard to ensure residents are safe and supported during what we know is a challenging time. We recognise that the potential costs are significant and are committed to minimising them, while putting residents’ safety first.
“As the property manager, we are discharging our responsibilities under the leasehold agreements and working with residents as closely as possible to find a solution to this very complex situation.”
