As 17% of cladding leaseholders consider bankruptcy, LKP funding proposal offers alternative to successive crises facing flat-owners

February 23, 2021 // by Sebastian O'Kelly

Below is the updated and revised LKP financial solution to the cladding scandal based on levies on the sector rather than forced loans and taxpayer bailouts.

Message from the UK Cladding Action Group:

“Leaseholders are more than numbers; they are citizens who worked hard and saved to buy their flats. They are first time buyers; they are families, and they are pensioners. They include nurses, teachers, doctors and social workers, with an average combined household income of less than £50,000.

“They purchased their flats in good faith and having conducted all the due diligence required.

“Leaseholders would have never dreamed of the systemic regulatory failure which facilitated manufacturers to fraudulently classify their products as safe.

“They could have never imagined that developers would leave out mandatory fire safety mitigation measures to further increase profits, that private building inspectors would approve defective buildings, or that insurers and warranty providers would refuse claims against such fire safety defects.

“Leaseholders, excited to buy their homes, often their only asset, would have never been able to fathom that they would be left paying the bill for this systemic regulatory failure and corporate malfeasance.

“On behalf of millions of leaseholders, we write to implore you to implement the LKP Proposal. As things now stand, it is the only hope that thousands of leaseholders have to not become bankrupt victims of the building cladding and fire defect crisis.”