Funding for flat block repairs

Gibsy

Hi

I'm a director on the management committee for a group of 28 flats in 7 blocks. The flats date back to 1910 and the original roof has outlived its useful life and needs to be replaced. We've been quoted approx £200,000 to fully reslate the roof and we are now looking for funding. There is no enthusiasm amongst owners for a £7000 bill per flat to cover the cost and so we need to seek a loan or grant for the work. Myself and the other directors are simply volunteers with no experience in this area.

Is anyone able to advise on good sources of funding for this sprt of project? We hold our bank account with Coop bank and will of course start there but other suggestions would be welcome.

Many thanks

Paul_Downward

Gibsy wrote: »

Hi

I'm a director on the management committee for a group of 28 flats in 7 blocks. The flats date back to 1910 and the original roof has outlived its useful life and needs to be replaced. We've been quoted approx £200,000 to fully reslate the roof and we are now looking for funding. There is no enthusiasm amongst owners for a £7000 bill per flat to cover the cost and so we need to seek a loan or grant for the work. Myself and the other directors are simply volunteers with no experience in this area.

Is anyone able to advise on good sources of funding for this sprt of project? We hold our bank account with Coop bank and will of course start there but other suggestions would be welcome.

Many thanks

Wow, you could re-slate an entire town for that!! how big are these roofs?? are they in a conservation area?? what is the Sq m of them, where are they??

Paul_Downward

But to answer the question, look at the title deeds, which could mean the owners have an obligation to pay if they are in a state of disrepair. if they own them then why should there be a grant system for them to exploit? and if they are rented privately, you will get nothing.

molerat

How many quotes have you had for the work ?

There may be some grant money available, speak to your local council, but unlikely unless there are special circumstances. Nobody is going to give me money for my roof when it needs repairing, why should the flat owners be treated differently. ?


The lease holders do not have much choice other than to pay for the required works according to their leases. That is the risk with a leasehold flat.

How do you propose to finance a loan ? What does your constitution / master lease / title deed state about repairs ?

Yolina

Gibsy wrote: »

Is anyone able to advise on good sources of funding for this sprt of project?

A sinking fund that's exactly what it's there for. Except that it seems that no-one in the management committee ever thought of setting one up. Might be worth bearing in mind for the future so that the same situation doesn't crop up again next time some expensive works are required.

Have you had several quotes? There is normally a well defined process to follow for major works.

Realistically our only options are going to be either get the leaseholders to come up with the money or get a loan with the repayment to be shared by the leaseholders

-taff

I assume you have a service charge to cover things like refuse, lighting, security etc? If you don't, you may have to instate one rapidly.

If youhave, you'll have to increase the service charge for each owner to cover the cost of reapying a loan.


Not sure what your maths is doing but it comes out at £700 per owner, not £7000? which is a lot more managebale.

Your leases will probably say that you are responsible to paying for repairs equally.

molerat

?? I make it £7142.85 - £200000/28

Gibsy

Hi all

Thanks for the replies and for checking my maths! :-)

We as owners are responsible for the cost of the repair under the terms of the lease, which everyone accepts. Mostly there is resistance to paying out £7000+ upfront and the preference to seeking out a loan which can be paid back over a longer period of time. The quotes work out cheaper if the work is done in one go rather than staging the work over several years. The reason the quote is so high is because we are a terrace of flats which means a very big roof!

In the past there was a resistance to raising the maintenance charge in order to save for major works but recently, after I joined the committee, we pushed through an increase in the charge. This will help save more into our sink-fund but not quickly enough to save enough for the roof work to be paid outright but hopefully enough to secure a loan.

I have no experience for raising finance as a company (which our committee is) and am therefore uncertain as to the best way to seek funding. The property is protected rather than listed and several owners have mentioned that there are sometimes grants available for works on our type of flat, particularly if you seek to insulate the roof at the same time. However, I've yet to find any information to this effect on our council website, and assume a loan will be needed. I don't know if seeking a loan is as simple as approaching a high street bank or if as a company we would be better off approaching other types of lenders.

Thanks for the advice.

macman

How many quotes have you had for the work? For a project on this scale, you need at least 3, you can't just take the first one, which could be double what another might quote.
And check that the quote includes the scaffolding.

andyfromotley

on a job of this size consulting a quantity surveyor would probably be cost effective. They will know what you should be paying and will draw up an effective schedule of works and if needed manage the work checking that it is completed to the agreed contract. They will almost certainly save you more than they cost.

Otherwise you risk being like lambs to the slaughter as roofing contractors recognise that you don't know what you are doing and act accordingly.

I can't advise regarding funding but perhaps start at the bank which holds your bank account?

-taff

Yep, My calculator only works if I put the right figures in
I'll ask our accountant what they would do in these circumstances and let you know [unfortunately, probably won't be for a few days because I'm away]....