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Value of London flat plummets from £475K to £50K

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36 minutes ago, ubuntu said:

Value of London flats slashed by Grenfell-style cladding

Home in New Capital Quay, Greenwich, worth £50,000 rather than £475,000, owner told

https://www.theguardian.com/society/2018/apr/16/value-of-london-flats-slashed-by-grenfell-style-cladding

Looks like these were bought using HTB, no doubt a bailout will be mooted for the developers.

 

live by the (ponzi) sword, die by the sword, heh, Cecile Langevin, Senior Analyst, Energy Commodities at Thomson Reuters

It is like someone has taken away our life choices, our freedom,” she said. “And nobody is doing anything about it,” she added, in tears.

Langevin has a two-year-old son and was due to give birth to her second child on Saturday. She had put their flat on the market in the hope of moving out of London to a bigger home.

 

Sophisticated investor, no pity.

Edited by Si1

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Langevin funded the flat in 2014 through some savings, a mortgage with a high-street bank and a £95,000 government loan under the Help to Buy scheme designed to help people without enough savings to get on the property ladder.

She said she could repay that loan without selling, under the government’s rules. But she believes she has to repay only 20% of the market value, which at £50,000 means she would owe £10,000 and the government would lose £85,000 of its loan to her.

 

The governbankment cannot afford social care etc but can bung a bank £85k compensation.

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32 minutes ago, ubuntu said:

Value of London flats slashed by Grenfell-style cladding

Home in New Capital Quay, Greenwich, worth £50,000 rather than £475,000, owner told

 

Well I do feel a bit sorry for the woman.  However this doesn't ring true.  Even if the leaseholders were 100% liable it wouldn't cost £425k per dwelling to replace the cladding.  Surely buyers could be found quite easily at say £200k who would accept the risk.   Academic though, none of the current owners would accept £200k.

Just shows how property can kick you in the teeth.  However, whenever I raise examples like this my wife's property worshipping family get extremely angry.  Like I've disrespected the God of bricks 'n mortar of something.  People say this is to do with confirmation bias and the fragile ego, but I think they're just pillocks.

If some mug in this block is prepared to take £50k then why not buy for cash, live in rent free for years while they argue, then refuse to pay whatever the contribution is for further months/years and then eventually rescind ownership and abandon the flat when served with a court order?  I appreciate most don't have £50k and no foreseeable need for credit in the future, but a lot of folk 50+ are in that position.

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17 minutes ago, TonyJ said:

This is obviously wrong. Everyone knows property in London only goes up.

Sorry, I know loads of you have done this before but I can't resist:

Image result for comical ali

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32 minutes ago, Si1 said:

live by the (ponzi) sword, die by the sword, heh, Cecile Langevin, Senior Analyst, Energy Commodities at Thomson Reuters

It is like someone has taken away our life choices, our freedom,” she said. “And nobody is doing anything about it,” she added, in tears.

Langevin has a two-year-old son and was due to give birth to her second child on Saturday. She had put their flat on the market in the hope of moving out of London to a bigger home.

 

Sophisticated investor, no pity.

I was going to say

"Sophisticated?   Are you sure?  She doesn't seem very sophisticated "

But then I noticed her job title, so I guess she is.

 

If I have a second hand car which has a dangerous design fault, then there is a recall and it is fixed which costs me nothing, why not the same with houses?

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“The blight caused by Grenfell is national and the government doesn’t seem to be too bothered about that. So far, what we have heard from Greenwich and Croydon is just the tip of the iceberg,” said Martin Boyd, a trustee at the charity Leasehold Knowledge Partnership, a service that advises leaseholders on their rights over cladding and other issues.

They seem to have everyone on-side as far as the propoganda goes.

 

CAUSED BY GRENFELL ?????? WTF?

 

How about blight caused by shoddy builders using a not-fit-for-pupose product and self-certifying the work allowed to escape any comeback by doing a runner.[Insolvency for any company that may have a liability, use the rules to carry on and do it again, bung ya mates in Westminster a bit to keep making loop holes, sit pretty in ya million-quid country pile and look forward to the fires of hell]

 

Police obviously still too busy protecting posies in memory of a scumbag burglar to bring charges over the fire.

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2 minutes ago, iamnumerate said:

I was going to say

"Sophisticated?   Are you sure?  She doesn't seem very sophisticated "

But then I noticed her job title, so I guess she is.

 

If I have a second hand car which has a dangerous design fault, then there is a recall and it is fixed which costs me nothing, why not the same with houses?

My problem is less to do with the design fault in the flat, she can get legal advice over that.

She leveraged using taxpayer money to use the - hoped for - uplift in property value, to buy a nice house in the country. At which point she, or someone like her, would likewise be in the property section of the guardian extolling her saviness. She took a risk, she has the income and savvy to deal with, she can f#ck off with the self pity.

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The way I read the article is that she is trying to tell the government that market value is now 50k so that she can pay off the 95k HTB with 10k.

Anyone know if the HTB contract allows her to achieve that?

Agree with those who say there would be plenty takers for 200k.

Better [but unlikely] you would hope that HTB contract says the government can opt to simply buy for 50k if made that offer and rent back to the occupant as a council flat for a council tax rate of say 6k a year. I guess there will/should be something in the contract to avoid someone claiming a stupidly low market value or selling to a dodgy-mate for BMV . Or did they fail with this as with everything else?

Edited by ebull

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1 minute ago, Si1 said:

My problem is less to do with the design fault in the flat, she can get legal advice over that.

She leveraged using taxpayer money to use the - hoped for - uplift in property value, to buy a nice house in the country. At which point she, or someone like her, would likewise be in the property section of the guardian extolling her saviness. She took a risk, she has the income and savvy to deal with, she can f#ck off with the self pity.

I can't argue with this in general terms.  I'm sure this was the plan.  However, I have walked around this area numerous times and its hardly vibrant.  There are also transport issues (Its close enough to see the City, but takes longer to Bank than from zone 4 central line stations unless you are right by N. Greenwich, and the rush hour scrums there can be spectacularly grim).
It wouldn't have worked - well maybe a nice house somewhere like Crawley or Chatham, but certainly not a roses round the door cottage tucked away on the North Downs.

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24 minutes ago, hotblack42 said:

I can't argue with this in general terms.  I'm sure this was the plan.  However, I have walked around this area numerous times and its hardly vibrant.  There are also transport issues (Its close enough to see the City, but takes longer to Bank than from zone 4 central line stations unless you are right by N. Greenwich, and the rush hour scrums there can be spectacularly grim).
It wouldn't have worked - well maybe a nice house somewhere like Crawley or Chatham, but certainly not a roses round the door cottage tucked away on the North Downs.

The block of flats is a stone's throw from the Cutty Sark DLR.

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Can I just say: 

 

£475k for a flat?

 

Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha Ha ha ha ha ha !

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1 minute ago, hayder said:

let them eat cake.

This. I'll buy that flat for 50K  cash today and live in it for 10 years when working in London or when the wife does. Cheaper than hotels etc over the term. 

On the fire risk, I can't believe it will be more than a few thousand per flat for a full conversion or gold standard fire protection system.

 

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Wouldn't the Government need to go after the builders if the prices of the properties have fallen in value due to dodgy building (installing non-fire safe Grenfell type panels)? I doubt there will be a quick resolution as there seems to be complete confusion as whether these panels are actually safe or not - weren't they supposedly ok'd by the EU and that is why they have been used in all these developments?

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21 minutes ago, Castlevania said:

The block of flats is a stone's throw from the Cutty Sark DLR.

Yes very handy for Docklands, if you don't mind that it takes 10 minutes to travel 1 whole mile.  Any road up, your location and travel preferences and mine are immaterial.  A flat in Greenwich, or indeed anywhere on the S Bank can't attract the prime money needed to skip off to a des res in rural Surrey if that was Flossie's plan.

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45 minutes ago, stuckmojo said:

I'll buy that flat for 50K  cash today and live in it for 10 years when working in London or when the wife does.

Would you really?  Having seen the video of Grenfell?  You'd sleep in a place like that? 

 

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5 minutes ago, Bricks n' mortar said:

Would you really?  Having seen the video of Grenfell?  You'd sleep in a place like that? 

Yes life is a risky business 

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1 minute ago, happyguy said:

life is a risky business 

I suppose it is - and now I think about it, my own dwelling may be similarly combustible. (built before building standards).  I'd probably even live there myself, for 50K - and the price of a good bungee rope.

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12 minutes ago, Bricks n' mortar said:

Would you really?  Having seen the video of Grenfell?  You'd sleep in a place like that? 

 

buy some fire extinguishers, good smoke and temperature sensors, gas masks in a cabinet, battery torches for the family, fire blankets... 

for a few hundred pounds you could "mitigate" death risk quite well. 

May struggle getting contents insurance though.

the lass is wailing because she's not getting her "free money pot". nothing to see. 

Edited by hayder

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11 minutes ago, Bricks n' mortar said:

Would you really?  Having seen the video of Grenfell?  You'd sleep in a place like that? 

 

I did, and it was horrific. The thing is, I am sure that the only thing that these two buildings have in common is the cladding. I'd imagine that the rest of it would be more modern. 

Not that I'd choose to buy for real it but I believe that the story is a bit hyperbolic. Surely removing the cladding isn't beyond the wit of man if that were the only issue. 

The interesting thing is that this is probably an excuse for falling sales and low demand for London flats. Especially for £450,000 

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2 hours ago, hotblack42 said:

Sorry, I know loads of you have done this before but I can't resist:

Image result for comical ali

always loved the chemical brothers. 

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So a quick look at what's available at the prestigious New Capital Quay development .

This one boasts " naturally lit interiors" ..... ooooh ???

So maybe that's why it's 261k extra.

http://www.rightmove.co.uk/property-for-sale/property-49946628.html

Don't forget the 400 per month costs. BAND F ????

Quote

Further details

Tenure:
Leasehold
Lease expires:
Jan 3007
Ground rent:
£350 per annum (2016)
Service charge:
£1319.57 per half-year (2016)
Stamp Duty
£26,800
Council tax:
£2,065 per year (Band F)

 

Here are some more:

poky rental

http://www.rightmove.co.uk/property-to-rent/property-71078315.html

Nice balcony attached to more depressing cupboard spaces with low ceilings

http://www.rightmove.co.uk/property-for-sale/property-52492128.html

 

Here's the only one nearby at the right price. Good demonstration of why you need to remove the furniture from these flats before trying to sell inadequately sized rooms.

http://www.rightmove.co.uk/property-for-sale/property-51196203.html

 

 

 

Edited by ebull
make links clickable - has it worked?

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