Former Bank of England economist outlines proposal to fix cladding crisis without billing leaseholders
Campaigners have designed a proposal to fund post-Grenfell cladding remediation through a system of levies and taxes following the provision of up-front funding for remediation work #ukhousing Dean Buckner, a former Bank of England economist, outlined the proposal which has been developed for the Leasehold Knowledge Partnership (LKP) charity at a meeting of MPs yesterday afternoon.
Tory MPs Stephen McPartland and Royston Smith are on the same page as LKP’s proposal:
Government cannot continue with ‘sticking plaster solutions’ to meet fire safety standards
It is astonishing that leaseholders have been left to cover 100% of the costs to make buildings safe. This should be the government’s responsibility. Recently, we started a campaign to support leaseholders living in high-rise private residential buildings that do not meet fire safety standards through no fault of their own.
Anyone who wants to see the APPG on leasehold reform and commonhold today can do so here.
Unfortunately, the recording omits the chair Seb O’Kelly paying tribute to LKP former chair Martin Boyd, who resigned last week after a vituperative and wrong attack in a formal setting, which is now the subject of complaint.
The speakers were: Michael Wade, government adviser on funding the cladding remediation; Ritu Saha, founder of the UK Cladding Action Group; and Dean Buckner, LKP trustee, on alternatives to making leaseholders take out loans.
The Zoom link is here:
https://us02web.zoom.us/rec/share/xPEMs5EVWym_xUoo_BByS0x4O5r_sE3yyEAcKgcXwPlD0fPdbPR9eQUgrv42Acqr.pLijvJq-WPrDEuck
The Passcode: U$p0+snF
Dean Buckner’s presentation, effectively a summary, is here:
Dean Buckner and team members Lucy Brown and Liam Spender full presentation is here:
Related posts:
Only one Grenfell cladding site in line for taxpayer handout as December 31st deadline looms, reports BBC R4 You and Yours
APPG, December 6: Park home banditry; Law Commission; Planners barring leasehold houses; London deputy mayor; gargantuan Grenfell bills for leaseholders
Sir Bob Neill becomes cladding chair at APPG
Communities Select Committee: cladding blocks still doing nothing by December should have their freehold removed
Apsana Begum takes to Zoom to help trapped Poplar and Limehouse cladding victims
Do NOT buy a new property with ground rents
Excellent proposals by Dean Buckner.
If even only one leaseholder fails to take on the loan repayments as proposed by Michael Wade, then it places a greater burden on the remaining leaseholders. As it is under Wade’s proposals they face an almost open ended commitment.
No way should any leaseholder have to pay anything for remediation costs.
Just like when car manufacturers repair at their cost defective vehicles the same for Freeholders and builders.
No leaseholder should have to pay a penny in remediation costs.
Leaseholders are tenants of the Freeholder.
Tenants don’t pay for defective properties.
That is the LL problem.
The Freeholder is the LL.
As one of those affected I simply will NOT pay any remediation costs.
If necessary I will go bankrupt.
Being retired I will be discharged after a year.
My pension can’t be touched.
I will not pay for any loan nor will I pay vastly increased service charges.
If I refuse to pay vastly increased service charges the lender will have to pay the service charges or lose their security.
If they do pay my lender will repossess and try to sell.
They won’t be able to without a valid EWS1 form.
The remediation costs are unviable for leaseholders to pay.
2.5 million flatowners may have to go bankrupt.
2.5 million defaulted flat mortgages will cause a run on the banks.
Flats will be unsellable until an EWS1 form has been achieved.
It could costs leaseholders up to £50000 per flat.
I have 4 of them.
No way will I pay those costs.
These amounts are more than the current equity in each flat.
Actuarily I DON’T have time to have these flats viable.
Going bankrupt makes far more financial sense for me and many other flat owners if Govt DOESN’T pay for remediation costs.