Gigantic bill from the council for Major Works

losttheplott

Hi Guys - guidance needed please!
I bought a tiny flat virtually in zone 1 central London (thanks to Mum and Dad) about ten years ago. last year i started receiving many letters regarding major works taking place to this block this year and that leaseholders will be liable to costs. In this small block (30 flats) there are about 20 council residents and ten are leaseholders. I was then sent an estimated bill (JUST MY PORTION ALONE) for the complete renovation of this block - brand new crittal steel windows a brand new roof and repainted in communal areas- an estimated £24,000.00 quid! Are they having a laugh? I really dont know what to do. I live alone in here and already I am mortaged up to the hilt and drowning in a similar amount of unsecured debt brought about by having cancer (and surviving it) 4 years ago. I do not have any type of insurance as various health issues mean that they simply will not insure me. Lambeth council will send the final bill in about 6 months time. Apparantly this is usually more than than the initial estimated quote. But seriously?? I will never be abnle to pay this amount - yes they have given a number of payment options ie spreading the repayments out over ten years but that will still equal to more than £200 per month. Has any one else ever been in this situation and please please please tell me how to deal with this scam which clearly makes a vast profit for lambeth council (I realise Crittal steel windows are very expensive but not to the tune of £24000) !! I'd appreciate any advice thanking you all in advance

ThisTime

Have you rang them ? It could be a misprint maybe ! Is there a management company looking after the flats you can speak too ?

I_have_spoken

Sorry, but the lefties on the Council will relish bankrupting private owners (spit!) who they regard as have stolen the housing from the deserving poor who vote Labour

Oh and the exorbitant cost is because the selected contractor knows a £££ bung will need to be paid to the council staff who ran the tendering process

Pixie5740

That's one of the issues with purchasing a flat with the council as freeholder. There's no sinking fund so it's like a game of Russian Roulette. You could live there for years and not pay anything or you could get landed when an enormous bill.

I would check that £24,000 isn't a typo although I know those windows are going to be incredibly expensive.

PlutoinCapricorn

You should have been consulted before any final decisions were made. You are entitled to ensure they got a range of quotes. Is there a resident's association?

This website is very useful:
http://www.lease-advice.org/publications/documents/document.asp?item=14#11

PlutoinCapricorn

Different councils seem to operate in different ways. Some may offer a loan if you can show that you have been turned down by the banks etc. All this should have been made clear to you well in advance.

[Deleted User]

The OP may well have been more interested in fighting cancer and keeping going financially rather than sorting out something that 'may' happen in the future. The cancer was 'now' the refurb was somewhere 'over thataway'.

Now the future is here.., so we need to concentrate on what she can do now.

pinkshoes

I would write to the council, asking to see the three quotes obtained for the work, and a full breakdown of ALL costs associated with the work done.

The cost should be split between all 30 flats, so if 20 are council properties, they should also be paying their own share.

30 x £24000 = £720,000!!!!!!

Are they diamond windows??

abankerbutnotafatcat

It does seem a lot. I have recently been sent an estimate from my council freeholder, neighbouring Wandsworth. They sent me all the quotes they received. I didn't do the maths as my estimate seemed reasonable and having had the property for nearly 20 years I've developed a element of trust with LBW but in your case I would do a sense check on the breakdown of the costs using the Internet and phone calls to check material costs. The 'In Your Home' thread here may help too.

House prices in what Savills is referring to as 'Thamesside' (Battersea to Bermomdsey) have been rising and are forecast to continue to rise above the London average. Would you be able to remortgage? You won't have to pay until the work is done so there may be further increases in that period. Mortgage rates remain historically low.

You will resolve this, there will be a way and people here will help you. Please try not to worry too much.

jayss

Lambeth are a total nightmare for works, they'll have you chasing every disappearing contractor yourself then send a massive bill for project management.

Generali

Barbican residents get a £20,000 bill for 2 years every decade or so for new lifts. As Pixie5740 said it's one of the perils of leasehold in a council owned building.

Unfortunately your liabilities aren't changed as a result of past illnesses or current debts.