Southwark: hand over £50,000 … or it may just be £15,000 in 30 months’ time

Leaseholders have been told to hand over between £38,000 to £50,000 for a council major works scheme in Southwark

But if the work at the Portland Estate involves central government funds through the Decent Homes standard scheme, then there bills may be capped at £15,000.

That was the limit brought in under Florrie’s Law by former Communities Secretary Eric Pickles to prevent right-to-buyers being wiped out with their first major works bill.

At present, the council does not know, so that means the leaseholders – who appear to be young Londoners trying to get on the housing ladder – must pay up the full amount.

Shaun Nicholson, of Southwark council, has told leaseholder Rachel Brown:

Rachel Brown says: “I find it difficult to comprehend that these works are going ahead in a few weeks time, yet the budget has not been worked out / fully allocated.

“I also believe it is completely unreasonable to expect leaseholders to wait until final account to know whether or not the £15,000 cap will apply – surely this is the first thing we should be told.

“Additionally, it seems that the council has a certain amount of flexibility in whether or not to allocate the central funds to this work, which obviously means that if they can get away with not doing so, they will, therefore meaning the cap will not apply.”

Five leaseholders have now written to local Labour MP Harriet Harman demanding her intervention. It is very likely that some of the leaseholders will be wiped out because of the major works demand and lose their homes.

“Each leaseholder of a one bed flat is having to pay over £40,000 pounds, and nearer £50,000 pounds for owners of two bed flats,” Harman has been told.

Harriet Harman has experience of the issues as she was contacted by Southwark council leaseholder Farieda Chandoo ¬ George Osborne’s former nanny – who now owes around £110,000 to Southwark after a disastrous court action

The Portland Estate consists of four high-rise buildings, each of which contain 54 flats. They are Studland, Broadmayne, Lulworth and Woodsford, on Portland Street (SE17 2TW).

There are 54 blocks of flats in each, and a total of 27 private leaseholders split between the 4 (10 in Broadmayne, 5 in Studland, 5 in Lulworth, and 7 in Woodsford).

The leaseholders meet Harriet Harman tomorrow.

Related posts:

Southwark council leaseholders see major works bill slashed from £17,000 to £8,000 BBC R4 You and Yours features £36,000 car crash leasehold defiance over Southwark major works scheme Southwark hosts meeting of 350 council leaseholders Signal Building leaseholders told to sell flats back to Southwark council Southwark litigant-in-person leaseholder faces wipe-out after £24,000 tribunal victory. Council now deploys ‘shock and awe’ QC …