London flats sold for up to £900,000 have been rendered worthless and could end up getting demolished after the building they were in was found to be in such a poor condition.
Residents of 53 Agar Grove, Camden, are now worried they'll be stuck in the new build because the properties they've bought are getting valued at £0 and are very unlikely to be insured or mortgaged.
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When they went on the market the flats were sold for between £700,000 and £900,000, but within the first few months of people moving into the building after it was finished four years ago problems started to appear.
The roof of the communal staircase started leaking and properties began letting in water, causing damage to people's homes.
Some windows and doors don't open properly, while walls on the inside and outside of the new build have started to crack.
Having spent years reporting problems about the building, residents have turned to the insurance company which provided a 10-year warranty on the property, but they have not paid out.
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One of the residents who bought a flat for £850,000 back in 2019 now faces his property being worth absolutely nothing and many of his neighbours are in the same boat.
On top of the insurance company not yet paying out, a surveyor inspected the building and found that the place could potentially be unstable, recommending that the place be considered for demolition.
Leaseholders at 53 Agar Grove say they've spent around £300,000 on legal fees in total as they live in fear of financial oblivion.
Government minister Michael Gove has offered to meet with leaseholders and Camden council is exploring options to prosecute the company that signed off on the building.
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They would be looking into Salus (Building Control & Fire Safety Consultants) Limited, the company that signed off on the work done by Cite Construction Ltd, who were contracted to build 53 Agar Grove by developer Prime Metro Properties.
If found guilty, then the punishment could be as much as two years in prison or an unlimited fine for those deemed to be responsible for approving the unsafe building, there are seven flats in total in the block.
According to the BBC, Prime Metro Properties are trying to get a commitment from insurance company Acasta European Insurance Company Ltd to get structural work done on the property.
The insurance company told the BBC it was taking concerns seriously and was committed to meeting the obligations of their insurance policies.
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Salus director Stuart Power told LADbible: "We understand the considerable frustration felt by Agar Grove flat owners as they look to have any existing defects repaired.
"Regrettably, despite several requests, we still have not had access to professional reports on the current state of the building."
"We remain confident of the role we took in assuring the build met all appropriate regulations at the time of construction, but this would not preclude future build problems from occurring which, in the ordinary course of events, new-build housing warranties should cover."
"In order to assist the owners in their plight, we are willing to review the reports and comment on the aspects relating to Building Regulation compliance."
"The new-build warranty insurers, developers and sub-contractors should work together to identify the cause of any defect and we will assist with this process where we can. This should provide the occupiers with a fruitful pathway towards remedy."
Joe Harker