1/7 #forcedloans Horrified to see Homes England advertising for an 18 month fixed term employee to oversee development of loans for 11-18 metre buildings (advert here: homesenglandcareers.co.uk/search/657)
2/7 #forcedloans would see innocent leaseholders pay the full cost of cladding works, plus interest. That is unjust.
If there are any non-cladding defects, then leaseholders would have to stump up the full costs AND pay these loans. Work may still not get done.
If there are any non-cladding defects, then leaseholders would have to stump up the full costs AND pay these loans. Work may still not get done.
3/7 Of course, we have only the sketchy details the government has given so far. But that limited detail suggests that #forcedloans will not work, for some or all of the reasons below.
4/7 Capping the loan repayments at £50 a month, as the government as promised, would make this idea unworkable for a loan of the size of some of the bills being seen. The £50 a month would never repay it.
5/7 Increasing service charges by £50 a month, as the government appears to propose, would also affect the ability of leaseholders to remortgage and obtain other forms of consumer finance (car loans, credit cards). Service charges feature in FCA loan affordability calculations.
6/7 Last but not least, if the plan is to make freeholders the borrowers then wherever there is secured lending in place over a freehold, loan terms and negative pledges will prevent the freeholder borrowing more money and/or giving security for new loans.
7/7 #forcedloans will not work. They are unjust. All leaseholders in buildings of any height should be treated equally and given equal access to funding to fix all issues.
#LeaseholdersTogether #endourcladdingscandal
#LeaseholdersTogether #endourcladdingscandal
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