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EWS1 Update:
On the 20th July Chris Pincher released the Buildings Safety Bill which enshrines into law the fact remediation costs for buildings will be borne by leaseholders under a new term called building safety charge. The demand for building safety charges must be paid by leaseholders within 28 days and is enforceable in county court. It's estimated that the average cost for remediation works for buildings with cladding will be £68k per leaseholder.This really is becoming a big scandal.
Finding 68k within 28 days is a non-trivial task, I'm assuming that for most it would mean adding that to the mortgage, but whether that's possible is going to depend on level of equity, and whether the bank thinks the property has any value given the current situation. What a shit show.
Dammit-
It'll not be possible for almost all residents of these blocks.
Apparently the draft bill was written in consultation with freeholders. Which is interesting, as before the bill was released they were solely responsible for the costs. There was talk of many housing associations (who are also the freeholders of 000's of buildings) becoming insolvent if they had to pay for the repairs, so rightly they should be protected as they provide an invaluable service to many, often lower income tenants/leaseholders.
However, the majority of freeholders are privately owned asset classes, these freeholders have no skin-in-the-game other than employing intermediaries to 'manage' their freehold assets to x% yield.
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EWS1 Update:
On the 20th July Chris Pincher released the Buildings Safety Bill which enshrines into law the fact remediation costs for buildings will be borne by leaseholders under a new term called building safety charge. The demand for building safety charges must be paid by leaseholders within 28 days and is enforceable in county court. It's estimated that the average cost for remediation works for buildings with cladding will be £68k per leaseholder.
This really is becoming a big scandal.