Cladding related charges to leaseholder

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    Cladding related charges to leaseholder

    Hello,

    I am a leaseholder. I recently received a demand letter from the blocks management company asking for apprx. £10,000 towards the investigation and procurement of the cladding problem in the building. Other leaseholders have also received similar demands. They have informed us that they have applied for the government grant and this demand will be used only if they do not receive the grant from the government.

    Key point I am trying to understand is whether the leaseholders are liable to pay these massive charges as these are related to the problem in the building structure that is owned by the freeholder.

    Your advice will be highly appreciated.

    Thanks.

    #2
    The terms of your lease will probably say leaseholders are required to pay service charge for "maintenance of your block of flats". Leaseholders don't have any legal ownership of the building and you are the long term rental tenant in an unsafe building .

    If your building was built to unsafe standard by the builder, it should be the builder's business insurance which pays for replacing the defective material. If the freehold title of the building was sold by developer to an investment company , it is the investment company's insurance which has liability for making the building safe.

    The situation is like a design fault on a bus,the bus operating company or bus manufacturer has responsibility for putting right, not the passengers.

    So make an application to the Magistrates Court for declaration the £10,000 bill is paid by freeholders insurance.

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      #3
      I don't see that a demand is reasonable or payable when the outcome of the application for a grant is unknown. You are entitled to know what "maintenance" is required and a quote for the cost. I suggest that you request a copy of all relevant documents such as reports and fire risk assessments. The nature of the work required and the terms of your lease will determine who is responsible for any cost.

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        #4
        Hi Gordon999 and eagle2,

        Many thanks for your quick and very useful advice. I'll share this with other leaseholders and act accordingly. Thanks again.

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