New Barns Leaseholders Rep Annie collated the questions that our members emailed to us for Workshop 11 NB leaseholders’ meeting on Tues 1st Feb 2022, 6-7:30. They were sent to Angela Nevin, Newlon’s Head of Transformation, on Monday 31st Jan 2022.
Please attend the meeting on Zoom to hear the answers (hopefully) by signing up via this link: https://us02web.zoom.us/webinar/register/WN_RlRVq8-cS2ObVPBI6Epmew
1 Changes to phasing
The updated phasing plan circulated for this workshop is much appreciated, though we understand they are subject to change. Changes and uncertainty in phasing is a major stressor for leaseholders. At which point will the phasing plans be permanent? Is it only set in stone once planning has gone through for that particular phase? Or is it going to be permanently set in the 2022 overall planning permission?
2 Misleading language in buy-back policy documents
Newlon is using misleading language in the one-sided policy documents issued to NB leaseholders. Using words such as “enforcement” intentionally misleads leaseholders into believing that we have no choice or agency in the negotiations with Newlon. There is no Compulsory Purchase Order in place – Newlon is requesting a voluntary surrender of lease, via negotiation with individual leaseholders, who have a right over their properties and no obligation to agree to Newlon’s offer as it stands. Newlon wants to go down this route because it is cheaper and faster than seeking a Compulsory Purchase Order. Please can Newlon revise the policy wording to accurately reflect the legal position and make clear that this is a 2-sided negotiation, not a situation that Newlon can dictate.
3 Early buy-backs
How can Newlon justify offering no early buy-backs for anyone, regardless of the emotional, economic, or health impacts that this may have?
4 Cut-off dates when leaseholders are deemed resident/non-resident
We have still received no indication of the cut-off date for a leaseholder on New Barnsbury to be deemed resident or non-resident. This has implications for the buy-out premium, and the ability to buy into the new development. The majority of non-resident leaseholders are NOT investment landlords, and originally lived in their flats until their circumstances changed. Additionally, some non-resident leaseholders moved out temporarily with the intention of selling up and buying elsewhere, only to find that because of the redevelopment they could no longer sell their flat and cannot buy an alternative home. The date of the overall planning permission expected in 2022, which is going to be used as the cut-off for residency on Old Barnsbury, is not an appropriate cut-off date for New Barnsbury, since some blocks will still be standing in 5, 10, 12 years. It is inappropriate to deem who is resident and who is non-resident a decade before flats are bought back – or in retrospect. Leaseholders in flats in later phases must be given the option to become recognised as resident again if they wish to. The Leaseholders Group’s position is that the cut-off for residency should be established phase by phase, not all at one date. This must be committed to in advance of this year’s overall planning application. This will give the clarity that leaseholders deserve, and allow us to plan our lives within a reasonable time-frame.
5 Funding for specialist independent advice for leaseholders
We understand that it is normal practice in large high-profile redevelopment projects that leaseholders receive specialist legal and/or compulsory purchase advice, funded by the development partners, to enable a fair negotiation of buy-backs. According to our Compulsory Purchase Valuer Keith Murray, Newlon (Bill Henderson) recently refused to fund this advice for members of the Leaseholders Group, including those in Phase 1. Please can Newlon clarify how individual leaseholders will be advised impartially – especially following the end of Source’s contract this year? Given that leaseholders should not be left worse off by being bought out, doesn’t this include the costs of appropriate independent specialist advice during the negotiation process?
6 Ability of leaseholders to sell their flats at market rate
Does Newlon acknowledge that no flats on New Barnsbury have been sold on the open market at market value since the ballot result? We are aware of one flat on New Barnsbury being repossessed and sold at below market rate. None of us who have approached estate agents in an attempt to sell have had any interest from them.
7 Cyclical Works
When will Newlon publish their schedule of cyclical works for each block? These works must continue in full while leaseholders continue to pay the full service charge. We will not allow you to run down our blocks without compensating us appropriately when bought back. If maintenance duties are not fulfilled, does Newlon agree to buy back flats at the value of a flat in a block maintained to the standard that it is supposed to be?
8 Unaddressed Structural and Safety Issues
There are several long-term structural and safety issues that Newlon have a legal duty to rectify, especially in blocks which will still be standing in 5+ years. Leaseholders are paying full service charges, and have a right to the work that Newlon is liable for. For example, there is subsidence affecting Amory House. Newlon stopped responding a year ago to the insurance company who had already agreed before the ballot to remedy this. In response to a solicitor’s letter last year Newlon suggested that they would be making a decision on the course of action for this, but three months later the insurer and leaseholder have still heard nothing. Please can Newlon comment on their commitment to fix structural and safety issues that leaseholders have a legal entitlement to, and which will affect valuations for buy-backs?
9 Capital Gains Tax
Anyone who is, or becomes, non-resident in the years until we are bought out will be subject to Capital Gains Tax. We are unable to avoid this due to our inability to sell. We expect this to be reflected in the buy-back package. Please can Newlon confirm that you recognise the economic impact of capital gains tax through being unable to sell – through no fault of our own?
10 Cost of Lease Extensions
Some leaseholders will need to pay thousands for lease extensions so their buy-back valuation doesn’t suffer. Does Newlon acknowledge that our inability to sell will create this cost for those who must extend their licences while waiting years for buy-backs?
Barnsbury Estate Leaseholders Group 