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| Grenfell Tower: Residents of private flats face £500,000 bill to replace flammable cladding, hears tribunal | |
| (35 minutes later) | |
| Cladding similar to that used on Grenfell Tower will only be removed from another south London block of flats if residents pay up to £500,000 or the Government provides funding, a tribunal has heard. | Cladding similar to that used on Grenfell Tower will only be removed from another south London block of flats if residents pay up to £500,000 or the Government provides funding, a tribunal has heard. |
| Leaseholders of the Citiscape block in Croydon were handed a combined £2m bill to replace the aluminium composite material (ACM) panels last month – the same type as those believed to have aided the spread of the fire in north Kensington, which claimed the lives of 71 people in June. | Leaseholders of the Citiscape block in Croydon were handed a combined £2m bill to replace the aluminium composite material (ACM) panels last month – the same type as those believed to have aided the spread of the fire in north Kensington, which claimed the lives of 71 people in June. |
| Management company First Port has gone to a first-tier property tribunal in an effort to make residents pay. | Management company First Port has gone to a first-tier property tribunal in an effort to make residents pay. |
| It is estimated that the total cost to replace the cladding will be £2m, and at least £500,000 is required to strip it from the flats. | It is estimated that the total cost to replace the cladding will be £2m, and at least £500,000 is required to strip it from the flats. |
| One of the leaseholders, a 95-year-old man, is being treated in hospital due to stress, his son told the tribunal. | One of the leaseholders, a 95-year-old man, is being treated in hospital due to stress, his son told the tribunal. |
| Richard Low-Foon, whose elderly father Luc lived in the block, said he was trapped in a “catch 22”. | Richard Low-Foon, whose elderly father Luc lived in the block, said he was trapped in a “catch 22”. |
| He told the hearing: “I cannot see a way out of it at this stage unless through a miracle we get some funding. At the moment he is staying in hospital because of all this – it got too much for him. | He told the hearing: “I cannot see a way out of it at this stage unless through a miracle we get some funding. At the moment he is staying in hospital because of all this – it got too much for him. |
| “I had to put him in a care home before Christmas on the understanding that I would defer payment until I sell the property, not that I am able to sell the property because of this.” | “I had to put him in a care home before Christmas on the understanding that I would defer payment until I sell the property, not that I am able to sell the property because of this.” |
| The management firm claims it was denied a loan by the Royal Bank of Scotland (RBS), which said it would only deal with individual leaseholders. | The management firm claims it was denied a loan by the Royal Bank of Scotland (RBS), which said it would only deal with individual leaseholders. |
| FirstPort is also seeking to recoup the cost of hiring fire wardens to monitor the blocks full time at £4,000 a week – so far running up bills of approximately £128,000 since 26 June 2017. | FirstPort is also seeking to recoup the cost of hiring fire wardens to monitor the blocks full time at £4,000 a week – so far running up bills of approximately £128,000 since 26 June 2017. |
| FirstPort regional director Paul Atkinson told the hearing: “We have no other funding options.” | FirstPort regional director Paul Atkinson told the hearing: “We have no other funding options.” |
| He added: “I know we have discussed with RBS – but I wasn’t privy to that conversation – the bank wouldn’t be willing to loan it to us but they would be willing to talk to individual leaseholders.” | He added: “I know we have discussed with RBS – but I wasn’t privy to that conversation – the bank wouldn’t be willing to loan it to us but they would be willing to talk to individual leaseholders.” |
| FirstPort originally told leaseholders they would owe £500,000 in service charges, later quadrupling the estimate to £2m. But at the time of the deadline for last year’s service charges – September 2017 – they had only put the £500,000 estimate to residents. | FirstPort originally told leaseholders they would owe £500,000 in service charges, later quadrupling the estimate to £2m. But at the time of the deadline for last year’s service charges – September 2017 – they had only put the £500,000 estimate to residents. |
| This means full work to replace the cladding post-removal cannot begin until they formally levy the remaining £1.5m costs, which will happen this year. | This means full work to replace the cladding post-removal cannot begin until they formally levy the remaining £1.5m costs, which will happen this year. |
| “By getting a very sketchy estimate, FirstPort has lost a year in being able to carry out the work,” Amanda Gourlay, representing leaseholders, said. | “By getting a very sketchy estimate, FirstPort has lost a year in being able to carry out the work,” Amanda Gourlay, representing leaseholders, said. |
| Judge Angus Andrew, who is chairing the panel at the tribunal, said it was “an uncomfortable issue” and asked: “What happens if the money doesn’t come?” | Judge Angus Andrew, who is chairing the panel at the tribunal, said it was “an uncomfortable issue” and asked: “What happens if the money doesn’t come?” |
| Mr Atkinson replied: “It is difficult. We know we don’t have the capacity to loan as much as required. We were with the MP for Croydon a few weeks ago urging him to speak to a [Ministry of Housing, Communities and Local Government] minister, which he did.” | Mr Atkinson replied: “It is difficult. We know we don’t have the capacity to loan as much as required. We were with the MP for Croydon a few weeks ago urging him to speak to a [Ministry of Housing, Communities and Local Government] minister, which he did.” |
| Leaseholders had feared any ruling at the Citiscape tribunal could set a precedent for other private blocks across the country. | Leaseholders had feared any ruling at the Citiscape tribunal could set a precedent for other private blocks across the country. |
| But Mr Andrew stressed the decision should not be interpreted as such, saying in his opening remarks: “Any decision we come to cannot be read across to another block of flats. It doesn’t set a precedent.” | But Mr Andrew stressed the decision should not be interpreted as such, saying in his opening remarks: “Any decision we come to cannot be read across to another block of flats. It doesn’t set a precedent.” |
| A Ministry of Housing, Communities and Local Government spokesman said: “As ministers have made clear, we want to see private sector landlords follow the lead of the social sector and not pass on the costs of essential cladding replacement to leaseholders. | A Ministry of Housing, Communities and Local Government spokesman said: “As ministers have made clear, we want to see private sector landlords follow the lead of the social sector and not pass on the costs of essential cladding replacement to leaseholders. |
| “The Government is not in a position to comment on individual legal cases. We are keeping the situation under review.” | “The Government is not in a position to comment on individual legal cases. We are keeping the situation under review.” |
| The tribunal continues. | The tribunal continues. |
| Additional reporting by agencies | Additional reporting by agencies |