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The new cladding scandal that could bankrupt a generation


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21 minutes ago, scottbeard said:

This is the sort of thing I think the government SHOULD be subsidising.  Something that makes houses safer, and helps individuals who are unlucky rather than unwise.

It's virtually everything else that they spend money on I disagree with.

Buying leasehold shared ownership is so full of fat tail risk it's untrue. 

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I’ve seen properties double in value and never ever heard anyone offer to share that rise with the greater community.  Say gov steps in, bails out, property goes up when sold - do they pocket the increase?

Also if I buy a place with some issue that reveals itself post ownership, am I going to be bailed out by the government is well?  

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9 hours ago, MARTINX9 said:

Those housing associations must have seen them coming. The HA owns most of the property and takes its cut if prices go up when the flat is resold but they don't have to pay for any service charges, repairs or leaseholder charges including cladding removal despite  being the majority owner of most of the flats.

No wonder board members and directors of housing associations are amongst the most highly paid people in the public sector - sorry 'charity sector'! 

Imagine being literally stuck living in a tower block in Newham with no escape as you are literally trapped in a worthless flat  but still have to pay monthly rent and service charges to the housing association - I feel desperate for them even if they do work in da media.

i was under the impression you had to be well educated for a media role ? i assume that the same education would tell you buying a flat in newham in a mostly HA block is a bad thing. 

obviously this is all above my comprehension so maybe it turns out to be a savvy move and this is just the pre planned fear stage leading up to a big compo claim all orchestrated of course. 

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6 minutes ago, morty said:

I’ve seen properties double in value and never ever heard anyone offer to share that rise with the greater community.  Say gov steps in, bails out, property goes up when sold - do they pocket the increase?

Also if I buy a place with some issue that reveals itself post ownership, am I going to be bailed out by the government is well?  

This

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1 minute ago, longgone said:

family money 😂

you don`t end up in a flat in neham with dodgy cladding with connections and family money. 

Your definition of family money is not quite the same as mine. Even a 5% deposit on a shared ownership flat is gifted these days owing to the high cost of renting.

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3 minutes ago, longgone said:

family money 😂

you don`t end up in a flat in neham with dodgy cladding with connections and family money. 

You do if you start your journey from the north 

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2 minutes ago, Si1 said:

Your definition of family money is not quite the same as mine. Even a 5% deposit on a shared ownership flat is gifted these days owing to the high cost of renting.

well the media job must pay at at least 60-70k so no gifts needed surely the other half is in a similar position couples usually gravitate to the same types. 

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1 hour ago, scottbeard said:

This is really unfortunate for those people - "caveat emptor" is one thing but this sort of thing is very hard to forsee, unless you bought the flat AFTER Grenfell.

I'm also surprised it costs as much as £78,000 to replace one flat's worth of the building cladding!  But then what do I know about building cladding...nothing.  That's the problem, nor does anyone.  Sometimes on HPC one can't help a bit of Schadenfreude but in this case I just feel sympathy - it could have happened to me when I bought a flat as a young person.

That £78,000 figure to reclad a one bed apartment can't be right. You could rebuild the whole flat for that.

Edited by Glenn
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3 minutes ago, Glenn said:

That £78,000 figure to reclad a one bed apartment can't be right. You could rebuild the whole flat for that.

50k for the management company 5k for the surveyor 2k for the scaffold.  1k for the new cladding 20k for the builder and the rest on expenses. 

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1 hour ago, morty said:

I’ve seen properties double in value and never ever heard anyone offer to share that rise with the greater community.  Say gov steps in, bails out, property goes up when sold - do they pocket the increase?

Also if I buy a place with some issue that reveals itself post ownership, am I going to be bailed out by the government is well?  

I agree. Of course, they wont rise in value when sold because of what and where they are, but theoretically true.

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2 hours ago, morty said:

I’ve seen properties double in value and never ever heard anyone offer to share that rise with the greater community.  Say gov steps in, bails out, property goes up when sold - do they pocket the increase?

Also if I buy a place with some issue that reveals itself post ownership, am I going to be bailed out by the government is well?  

Hmm good question - I guess the government could have a charge against the sale.

Above I suggested the government should SUBSIDISE the cost of the works - they definitely shouldn’t just pay the whole cost of it, as that goes too far. 

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1 hour ago, Glenn said:

That £78,000 figure to reclad a one bed apartment can't be right. You could rebuild the whole flat for that.

It cost about that much per flat to renovate Grenfell Tower to add the cladding!

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Poor building regulations and regulators, cutting corners, kerb appeal, profit before safety......the landlords must have given their consent to allow this cladding to be attached to what in effect is their property.....they are responsible for the property, they have to make sure the property is properly insured...... leaseholders only own the right to live in it for a set length of time.😉

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20 hours ago, ucnvpe0 said:

Surely anyone buying leasehold set themselves for this kind of trap?

I would rather rent than buy a leasehold.

Well its not an option for many people buying in London and the south east - they can't afford a freehold house so buy a leasehold flat. Even in places like Ilford, Bexley and Romford you probably need £100k in savings and a £100k combined salary to buy a house - insane but such is the crazy impact of huge population growth annually and buy to let competition.

How anyone can say a flat in a tower block in Hackney or Tower Hamlets - 20 seconds in to the video - is anyone's idea of a dream home beggars belief

More living the dream they could find another sucker to buy the place at an even more crazy price in 5 years perhaps?

Edited by MARTINX9
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Developers are liable if they fitted sub standard ( flammable) cladding, and no barriers to prevent the cladding turning into a chimney. As per Gren fell. 

When they go bust, it falls on leaseholders. 

When they go bust, housing association gets the 40% back for nothing and fixes the problem. Mortgage company writes off the loss. 

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