Armageddon for flat owners - PAS 9980 even worse than EWS1 fiasco?!

Crashy_Time

Tokmon said:

Crashy_Time said:

7sefton said:

I'm terrified by what I'm reading in this flat, as someone who owns two flats (one where I live, and one where I used to live which I'm renting out before selling). I hate leasehold/flats, but live in expensive cities so they've been my only choice other than wasting thousands of pounds in rent over the last ten years. 

I don't understand how this story - if the dreadful implications are true - isn't getting more coverage... even from Martin, as a way to warn people.

Should I just sell my two flats in a quickfire sale now and move into rented? I can't stomach them becoming worthless like the poor cladding victims' ones.

 Sorry, but you are possibly about to "waste" thousands of pounds on not being able to sell and having to bring two flats up to regulation? I wish people would stop with the "renting is dead money" thing, it isn`t if for example you are saving/investing more than your rent each month and letting the landlord pick up the tab for this kind of mess.

How much you save/invest each month compared to your rent is irrelevant as you would still be able to save/invest that money if you bought a house and were paying a mortgage instead of rent.

The real way to show how much of the rent is dead money is to work out:

(House Value) - (total payments made in house maintenance/repair + total interest paid on mortgage) 

If this number works out to be zero or above then every penny someone might have paid in rent instead is dead money. This is the situation for the vast majority of people who have bought. If this wasn't the case then landlords would be losing money and there would quickly stop being landlords if that was the case.


The benefits of renting are being able to quickly and easily move to new locations and stay places for relatively short periods of time. If your planning on staying in one place for a while then your almost always much better off buying.

Unless of course a major compliance/repair bill that you can`t afford turns up?

coypondboy

I have a friend in London who has been caught up in this and they have stopped paying the service charge and are awaiting the forfeiture of lease rule to come into play with evantually being evicted.  This will be happening to thousands of mainly young londoners who bought via shared owndership/help to buy and retiree's who downsized to a flat.  Flat prices will fall considerably as the market gets flooded with desperate sellers.  He does not have a mortgage but will lose all the equity tied up in the flat due to these rules and will have to rent again.  The legal process can take 2-3 yrs due to the courts being clogged up with cases.  Those in this situation should consider this route and then once kicked out declare bankruptcy and start again as your mental health will be wrecked by this going forward.  Just feel sorry for those who work in professions where they are unable to go down this route.  His service charge went from 2k to 15k and has to find an additional  80k in the next 30days as their block over 18m but rejected by the building safety fund having failed an ews1 but no cladding on the building.
Your only hope is abba disco dancing micheal gove will save you with a bailout but will cost 30 billion to tax payer.    

Crashy_Time

What is this all about?

https://www.labcwarranty.co.uk/blog/updated-guidance-for-magnesium-oxide-boards-mgo/

AdrianC

coypondboy said:

I have a friend in London who has been caught up in this and they have stopped paying the service charge and are awaiting the forfeiture of lease rule to come into play with evantually being evicted.

He's an idiot, and this will bite him HARD.

csgohan4

AdrianC said:

coypondboy said:

I have a friend in London who has been caught up in this and they have stopped paying the service charge and are awaiting the forfeiture of lease rule to come into play with evantually being evicted.

He's an idiot, and this will bite him HARD.

So your friend will incur more costs/penalties, get a CCJ/ bankruptcy. Not to mention lost all the money they put in and lender not happy and they will look to recover their costs too and being homeless

Good luck to your friend ever getting a mortgage for the next decade or so

Cutting your nose to spite your face springs to mind

your friend will not get a council house, as they are intentionally homeless

[Deleted User]

Crashy_Time said:

Tokmon said:

Crashy_Time said:

7sefton said:

I'm terrified by what I'm reading in this flat, as someone who owns two flats (one where I live, and one where I used to live which I'm renting out before selling). I hate leasehold/flats, but live in expensive cities so they've been my only choice other than wasting thousands of pounds in rent over the last ten years. 

I don't understand how this story - if the dreadful implications are true - isn't getting more coverage... even from Martin, as a way to warn people.

Should I just sell my two flats in a quickfire sale now and move into rented? I can't stomach them becoming worthless like the poor cladding victims' ones.

 Sorry, but you are possibly about to "waste" thousands of pounds on not being able to sell and having to bring two flats up to regulation? I wish people would stop with the "renting is dead money" thing, it isn`t if for example you are saving/investing more than your rent each month and letting the landlord pick up the tab for this kind of mess.

How much you save/invest each month compared to your rent is irrelevant as you would still be able to save/invest that money if you bought a house and were paying a mortgage instead of rent.

The real way to show how much of the rent is dead money is to work out:

(House Value) - (total payments made in house maintenance/repair + total interest paid on mortgage) 

If this number works out to be zero or above then every penny someone might have paid in rent instead is dead money. This is the situation for the vast majority of people who have bought. If this wasn't the case then landlords would be losing money and there would quickly stop being landlords if that was the case.


The benefits of renting are being able to quickly and easily move to new locations and stay places for relatively short periods of time. If your planning on staying in one place for a while then your almost always much better off buying.

Unless of course a major compliance/repair bill that you can`t afford turns up?

In other words it needs a huge disaster and uncaring government like we have now for renting to be as good as owning. In the normal course of things you are better off paying a mortgage.

Crashy_Time

[Deleted User] said:

Crashy_Time said:

Tokmon said:

Crashy_Time said:

7sefton said:

I'm terrified by what I'm reading in this flat, as someone who owns two flats (one where I live, and one where I used to live which I'm renting out before selling). I hate leasehold/flats, but live in expensive cities so they've been my only choice other than wasting thousands of pounds in rent over the last ten years. 

I don't understand how this story - if the dreadful implications are true - isn't getting more coverage... even from Martin, as a way to warn people.

Should I just sell my two flats in a quickfire sale now and move into rented? I can't stomach them becoming worthless like the poor cladding victims' ones.

 Sorry, but you are possibly about to "waste" thousands of pounds on not being able to sell and having to bring two flats up to regulation? I wish people would stop with the "renting is dead money" thing, it isn`t if for example you are saving/investing more than your rent each month and letting the landlord pick up the tab for this kind of mess.

How much you save/invest each month compared to your rent is irrelevant as you would still be able to save/invest that money if you bought a house and were paying a mortgage instead of rent.

The real way to show how much of the rent is dead money is to work out:

(House Value) - (total payments made in house maintenance/repair + total interest paid on mortgage) 

If this number works out to be zero or above then every penny someone might have paid in rent instead is dead money. This is the situation for the vast majority of people who have bought. If this wasn't the case then landlords would be losing money and there would quickly stop being landlords if that was the case.


The benefits of renting are being able to quickly and easily move to new locations and stay places for relatively short periods of time. If your planning on staying in one place for a while then your almost always much better off buying.

Unless of course a major compliance/repair bill that you can`t afford turns up?

In other words it needs a huge disaster and uncaring government like we have now for renting to be as good as owning. In the normal course of things you are better off paying a mortgage.

The "normal course of things" ended at least 20 years ago, the property market has been a rip off in one way or another ever since, and it isn`t as if the Conservatives just got power recently is it?

Crashy_Time

csgohan4 said:

AdrianC said:

coypondboy said:

I have a friend in London who has been caught up in this and they have stopped paying the service charge and are awaiting the forfeiture of lease rule to come into play with evantually being evicted.

He's an idiot, and this will bite him HARD.

So your friend will incur more costs/penalties, get a CCJ/ bankruptcy. Not to mention lost all the money they put in and lender not happy and they will look to recover their costs too and being homeless

Good luck to your friend ever getting a mortgage for the next decade or so

Cutting your nose to spite your face springs to mind

your friend will not get a council house, as they are intentionally homeless

It will take YEARS to get him out.

Crashy_Time

coypondboy said:

I have a friend in London who has been caught up in this and they have stopped paying the service charge and are awaiting the forfeiture of lease rule to come into play with evantually being evicted.  This will be happening to thousands of mainly young londoners who bought via shared owndership/help to buy and retiree's who downsized to a flat.  Flat prices will fall considerably as the market gets flooded with desperate sellers.  He does not have a mortgage but will lose all the equity tied up in the flat due to these rules and will have to rent again.  The legal process can take 2-3 yrs due to the courts being clogged up with cases.  Those in this situation should consider this route and then once kicked out declare bankruptcy and start again as your mental health will be wrecked by this going forward.  Just feel sorry for those who work in professions where they are unable to go down this route.  His service charge went from 2k to 15k and has to find an additional  80k in the next 30days as their block over 18m but rejected by the building safety fund having failed an ews1 but no cladding on the building.
Your only hope is abba disco dancing micheal gove will save you with a bailout but will cost 30 billion to tax payer.    

There will eventually have to be some sort of loan scheme from the government to bail people out or the market for these flats will collapse, it will probably collapse anyway unless there are changes to the law about ground rents/repairs etc.?