The cost for remedy works to a Waterfront block of flats affected by cladding issues could be about £30million, administrators say, as residents continue to be left in the lurch.
The Mill tower block in College Street, the tallest building in Suffolk, has been affected by safety concerns since 2013, when it was deemed unsafe after gale-force winds caused damage and tore cladding from the building.
The following year, fire experts warned that cladding on the building was so unsafe that all residents should be moved out.
RSM, which was appointed administrator after original developer Wharfside Regeneration Limited entered administration in 2010, has now said the cost of rectifying the issues “could be in the region of £30m”.
However, residents living at the building say they have been paying for years for properties that are now essentially worthless, affected by significant cladding issues and structural issues.
One resident, Rosalynn English, bought her flat for around £170,000 before discovering the cladding.
Ms English said: “The next step is who pays for it, and when will it get done. In the meantime, the situation for everyone who lives there is absolutely dire. I have a property that is now worthless.
“I have been told by my solicitor that I am insolvent, and service charges and the mortgage keep going up. It is very stressful. It could send some people over the edge.
“We are paying for something that isn’t worth anything, with no end date.
“We should never have been in the situation that we have been left in, from the time that we bought the properties and not been made aware that the freeholders were in administration.”
The exact cost for the works will be published in a “much-awaited report”, according to Ipswich MP Tom Hunt, who has raised the issue at Prime Minister’s Questions and joined the relevant Select Committee.
Mr Hunt added: “I meet with my constituents from the Mill approximately once a fortnight and I’m acutely aware of the stress this is placing on them all. I’m with them every step of the way. Though there is still uncertainty over timescales I’m firmly of the view that we’re heading in the right direction.
“The administrators have committed to the second quarter of 2024. The focus needs to be on finding a resolution before this time.
“The leaseholders at the Mill have done nothing wrong and it’s deeply immoral that they’ve had to pay the price for the mistakes made by others who to date appear to have got off scot-free.
“Whilst I’m confident we can get this issue resolved in time I’m aware that this won’t come of much comfort to those who feel like they’ve had to effectively put their lives on hold for years.”
The accountancy firm, which has been tasked with the ongoing care and administration of the property, said that the safety of residents continues to be a “key priority”.
A statement from RSM UK said: “We understand and share the concerns of leaseholders and residents at The Mill. We have been hosting a series of meetings and updates to keep them abreast of developments. The safety of all residents has been, and continues to be, a key priority.
“Since being appointed as administrators, we’ve worked hard to find ways to raise the necessary funds to rectify the issues affecting the property whilst maintaining important fire safety measures to ensure residents of The Mill can stay in occupation.
“We have updated residents with the news that the secured creditor (NAMA) requested that we pay them the majority of the funds we were holding in the administration, and that the administrators had no alternative but to comply with NAMA’s request, and this has now been transferred to them. It is unlikely that these funds will be returned.
“We held back a reserve fund to cover ongoing costs including certain fire safety measures and insurance costs.
“Our current estimates show that we have funds to take us into the second quarter of 2024. We are in ongoing discussions with the Department for Levelling Up, Housing and Communities and Homes England to help us access further funds, which we hope will significantly improve the prospects of being able to complete a sale of the development in due course.
“We are led to believe that the cost of remediation could be in the region of £30m. We are updating leaseholders and residents as we go.”
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