Owners hit with hike in insurance at fire hazard flats
RESIDENTS of ‘fire trap’ flats on the banks of the Mersey in Runcorn fear their home will become a ‘derelict development’ after flammable cladding sent their insurance bills soaring by 600%.
Owners of the almost 300 flats at The Decks in Runcorn have seen the total cost of insuring the six apartment blocks spiral from £34,000 to £254,000 since the development was deemed to be a fire hazard last year.
The steep rise in insurance costs leaves each leaseholder liable for around £1,700 in service charges.
They must also pay another £960 each to fund new fire detection equipment, which Cheshire Fire And Rescue Service have required management company Scanlans to install by the end of April.
But many leaseholders have said they will be unable to pay.
One resident told the Weekly News: “They haven’t worked on my behalf at all and now expect me to pay nearly half my state pension.
“I have contacted a local estate agent for help and advice on how best to rid myself of the property and I’m expecting predatory offers. I can’t continue to live as I am.
“As a retired mental health officer I have great concerns for owners’ health and welfare brought about by uncertainty, lack of communication and potential financial burdens.
“I myself am angry and distressed I invested in this place to enjoy my retirement, not spend my remaining years paying out for a situation not of my making.”
But moving out may be not be easy.
Many mortgage lenders are unwilling to finance the purchase of flats in developments with flammable cladding, and even if a buyer can be found the value of the flats has crashed.
When The Decks first went on the market in 2006, flats sold for between £100,000 and £140,000.
Now, some flats are on sale for as little as £60,000 and one is reported to have been auctioned off for just £38,000 after the leaseholders defaulted on their mortgage.
At a meeting with local MP Derek Twigg, residents warned that with people moving out and no money to pay for maintenance: “The Decks will become, by default, a derelict development”.
A spokesman for Scanlans, the managing agent for The Decks, said: “The regrettable increase in the service charge for leaseholders reflects a huge rise in the cost of insurance to cover properties at The Deck, which is solely due to the cladding issue.
“Working with our brokers, we explored every option to secure the best terms available and indeed most insurers declined to provide any cover at all. Having no cover in place was not an option. Cheshire Fire And Rescue Service has informed us that the fire alarm systems at The Deck need enhancing and, as leaseholders are solely liable for repairs and maintenance, an additional levy is due to cover these costs.”
However, it is possible that an even bigger financial hit could have been averted. In February, Mr Twigg raised the plight of The Decks residents in Parliament and said they could face bills of £30,000 each to replace the flammable cladding.
But in last Wednesday’s budget, Chancellor Rishi Sunak announced a £1bn fund to replace flammable cladding on buildings over 18m tall.
It is not yet clear whether The Decks qualify for a grant, but the original planning application from 2005 suggests it may be tall enough by a matter of centimetres.