A pioneering housing Private Finance Initiative project could force 42 leaseholders into bankruptcy, a council was warned this week
Chalcot Estate Leaseholders Association (CELA) whose estate in Camden has been selected as a PFI housing pathfinder, has been told by the council that members face bills of more than £30,000 under the project.

In a report to Camden CELA said: "Chalcot leaseholders have unwittingly found themselves on the verge of bankruptcy or condemned to a lifetime of debt."

The £30m plus project to upgrade five tower blocks in Swiss Cottage was selected, along with seven other schemes across the country, to test the idea of applying PFI on Housing Revenue Account homes (Housing Today, issue 130).

The problem of expensive bills for leaseholders is one that will have to be resolved if PFI is to work on council housing.

A spokesman for Camden Council confirmed that leaseholders could face one-off bills of around £30,000. But he said: "This is uncharted territory. The area of PFI and how it relates to leaseholders is unclear. Camden Council is seeking clarification and advice from the government on how it can help leaseholders."

The borough's housing committee is expected to discuss the problem at a meeting next week.

CELA secretary Pamela Collis said the costs were "ridiculous". She added: "We have either got to move out or take out what in effect is another mortgage."

She also claimed that her association had not been properly consulted on the plans and yet leaseholders had the "greatest financial liability."

But Camden's spokesman said: "Officers will ensure that leaseholders" views are fully considered as the scheme is developed."

Source

Housing Today