This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/society/2018/jun/18/grenfell-style-cladding-drops-flat-value-nerisa-ahmed
The article has changed 5 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| 'Grenfell' cladding: couple could sue after £600,000 flat now worth £90,000 | |
| (about 2 hours later) | |
| A family who have seen the value of their London flat slashed from £600,000 to just £90,000 because of Grenfell-style cladding could sue a government agency that helped them buy their home. | |
| They are the second homeowners in the New Capital Quay development in Greenwich to have their flat valued at rock-bottom prices. | They are the second homeowners in the New Capital Quay development in Greenwich to have their flat valued at rock-bottom prices. |
| Nerisa Ahmed and her husband bought the flat under the help to buy scheme when it was built three years ago and have had two offers fall through in the past six months because of the cladding. | Nerisa Ahmed and her husband bought the flat under the help to buy scheme when it was built three years ago and have had two offers fall through in the past six months because of the cladding. |
| In their report for Ahmed, Taylor Chartered Surveyors said the collapse in value of her flat was because the cost of replacing the cladding was unknown and that it was unclear when the cladding would be replaced due to ongoing legal discussions between developer Galliard and the insurer of the building. | In their report for Ahmed, Taylor Chartered Surveyors said the collapse in value of her flat was because the cost of replacing the cladding was unknown and that it was unclear when the cladding would be replaced due to ongoing legal discussions between developer Galliard and the insurer of the building. |
| The company said some flats had been valued at £0. They were unsellable, unrentable and unmortgageable. | The company said some flats had been valued at £0. They were unsellable, unrentable and unmortgageable. |
| “My flat is dangerous. I panic every night as I put my son to bed. I’m on the top floor – the 10th – and having a fire here is not something I’d like to experience,” said Ahmed. | “My flat is dangerous. I panic every night as I put my son to bed. I’m on the top floor – the 10th – and having a fire here is not something I’d like to experience,” said Ahmed. |
| She is now threatening to sue the government agency that helped her buy the flat claiming it reneged on an agreement to write down the majority of her £120,000 help to buy loan that paid for 20% of her home. | She is now threatening to sue the government agency that helped her buy the flat claiming it reneged on an agreement to write down the majority of her £120,000 help to buy loan that paid for 20% of her home. |
| Earlier this year another homeowner in NCQ had her £475,000 flat valued at just £50,000 because of the cladding. However the government agency kept its promise to write off most of the money it lent the woman, also for a 20% share in her flat. | Earlier this year another homeowner in NCQ had her £475,000 flat valued at just £50,000 because of the cladding. However the government agency kept its promise to write off most of the money it lent the woman, also for a 20% share in her flat. |
| “It’s very stressful. I’m not doing this for the money,” said Ahmed. | “It’s very stressful. I’m not doing this for the money,” said Ahmed. |
| The agency that administrates the help to buy scheme, Target HCA, agreed that she could redeem a £120,000 loan in April. The government gave her the loan in exchange for 20% equity in the flat and agreed to write off £102,000 because of the cladding valuation. | The agency that administrates the help to buy scheme, Target HCA, agreed that she could redeem a £120,000 loan in April. The government gave her the loan in exchange for 20% equity in the flat and agreed to write off £102,000 because of the cladding valuation. |
| At the end of April she and her husband handed over the remaining £18,000 and expected the paperwork to follow within days of completion, but this did not happen. | At the end of April she and her husband handed over the remaining £18,000 and expected the paperwork to follow within days of completion, but this did not happen. |
| After several attempts to get the documentation confirming the government no longer owned the 20% of her flat, she was told the agency had changed its mind because of the cladding and were seeking guidance from the government. | After several attempts to get the documentation confirming the government no longer owned the 20% of her flat, she was told the agency had changed its mind because of the cladding and were seeking guidance from the government. |
| Ahmed, a lawyer, has said she will sue if it does not deliver on its contractual agreement to redeem her loan. | Ahmed, a lawyer, has said she will sue if it does not deliver on its contractual agreement to redeem her loan. |
| “To change the rules and apply them retrospectively is an abuse of power. It is like buying a house and handing over the money and then the vendor doesn’t hand over the keys,” said Ahmed. | “To change the rules and apply them retrospectively is an abuse of power. It is like buying a house and handing over the money and then the vendor doesn’t hand over the keys,” said Ahmed. |
| Her plight highlights the predicament of thousands of homeowners in more than 100 private blocks around the country that still have Grenfell-style cladding, who are not getting help from the government. | Her plight highlights the predicament of thousands of homeowners in more than 100 private blocks around the country that still have Grenfell-style cladding, who are not getting help from the government. |
| “The government have done nothing about forcing private developers to remove the cladding and, instead of attacking the root of the problem, they are adding to the stress. We are people and it is not like we have any choice in this: we can’t move, we can’t rent, we can’t sell. We are trapped in a fire trap. It’s like having your freedom taken away. | “The government have done nothing about forcing private developers to remove the cladding and, instead of attacking the root of the problem, they are adding to the stress. We are people and it is not like we have any choice in this: we can’t move, we can’t rent, we can’t sell. We are trapped in a fire trap. It’s like having your freedom taken away. |
| New Capital Quay is believed to be the largest development in the country with Grenfell-style cladding, with almost 2,000 homes. | New Capital Quay is believed to be the largest development in the country with Grenfell-style cladding, with almost 2,000 homes. |
| Galliard Homes, the developer in Greenwich, is facing a bill of between £30m and £40m to replace the cladding and has done nothing to start the remediation works since it was discovered last year. | Galliard Homes, the developer in Greenwich, is facing a bill of between £30m and £40m to replace the cladding and has done nothing to start the remediation works since it was discovered last year. |
| It is now locked in a legal dispute with the National House Building Council (NHBC) over who is to blame and who should pay, in a case that lawyers say could take years to resolve. | It is now locked in a legal dispute with the National House Building Council (NHBC) over who is to blame and who should pay, in a case that lawyers say could take years to resolve. |
| The couple, who have racked up large debts from postgraduate studies, had hoped to move to a larger flat to accommodate their son, who is two, and their parents. | The couple, who have racked up large debts from postgraduate studies, had hoped to move to a larger flat to accommodate their son, who is two, and their parents. |
| In her letter before action, which initiated her legal dispute, Ahmed told Target HCA that she understood it might be concerned with the fall in value of such properties but said it could not change the rules after it had entered into a contract to redeem her loan. | In her letter before action, which initiated her legal dispute, Ahmed told Target HCA that she understood it might be concerned with the fall in value of such properties but said it could not change the rules after it had entered into a contract to redeem her loan. |
| “It is shocking that a government agency would act in such a cavalier manner,” she said. “[It] is worrying and feels very wrong.” | “It is shocking that a government agency would act in such a cavalier manner,” she said. “[It] is worrying and feels very wrong.” |
| Homes England said the redemption of help to buy loans was “purely an administrative matter and no contract has been reneged on”. It said it had not changed the rules on help to buy after the Grenfell scandal but could not comment on individual cases. | Homes England said the redemption of help to buy loans was “purely an administrative matter and no contract has been reneged on”. It said it had not changed the rules on help to buy after the Grenfell scandal but could not comment on individual cases. |
| If a home is hit by “novel issues” such as Grenfell-style cladding, “Homes England reserves the right ... to agree the valuer used”. It said in some cases it could get a second opinion on valuation to ensure “the interests of borrowers and taxpayer” were protected. | If a home is hit by “novel issues” such as Grenfell-style cladding, “Homes England reserves the right ... to agree the valuer used”. It said in some cases it could get a second opinion on valuation to ensure “the interests of borrowers and taxpayer” were protected. |
| Taregt said: “If a borrower’s property is affected by novel issues in relation to its valuation, eg its external cladding, Homes England reserves the right, in accordance with the terms of the equity mortgage, to agree the valuer used. This ensures the appropriate due diligence is carried out in the interests of borrowers and the taxpayer investment in these homes.” | Taregt said: “If a borrower’s property is affected by novel issues in relation to its valuation, eg its external cladding, Homes England reserves the right, in accordance with the terms of the equity mortgage, to agree the valuer used. This ensures the appropriate due diligence is carried out in the interests of borrowers and the taxpayer investment in these homes.” |
| Galliard declined to comment. | Galliard declined to comment. |
| The NHBC said: “We understand that the situation at New Capital Quay is very concerning for residents. We have been in regular contact with the residents to keep them updated.” | The NHBC said: “We understand that the situation at New Capital Quay is very concerning for residents. We have been in regular contact with the residents to keep them updated.” |
| It said Galliard’s subsidiary that is managing the estate, PMML, “is legally responsible for the ongoing safety” and its house guarantee “does not absolve PMML of this duty”. | It said Galliard’s subsidiary that is managing the estate, PMML, “is legally responsible for the ongoing safety” and its house guarantee “does not absolve PMML of this duty”. |
| Housing | Housing |
| Grenfell Tower fire | Grenfell Tower fire |
| Property | Property |
| Communities | Communities |
| London | London |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on Google+ | Share on Google+ |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |