Ipswich residents affected by safety crisis save thousands in costs after a tribunal victory.
A court ruled multi-billion pound freeholders, Grey GR, couldn't pass their legal fees on to the flat owners at Cardinal Lofts.
Tenants of Cardinal Lofts in Ipswich were successful in their tribunal. No longer fearing any additional costs be placed onto them.
We received a press release from Alex Dickin a member of Ipswich Claddiators and resident at Cardinal lofts, which said.
"A group of Ipswich flat owners adversely affected by the cladding and building safety scandal have battled at a tribunal against their £35bn-backed freeholder, to help prevent them from facing more unfair costs."
"Grey GR, the entity that owns Cardinal Lofts near Ipswich’s vibrant waterfront, applied to the court to bypass legislation which would usually allow flat owners to be involved in a consultation process for the building works required at the development."
"Grey GR is a shell company that has been set up to protect the majority shareholder Railpen – an investment company responsible for a £35bn fund for railways pension scheme members."
"The court ruled that Grey GR could not pass on their legal fees to flat owners via the service charge for this application and ordered them to pay the flat owners’ legal costs incurred for defending themselves at the tribunal."
"Cardinal Lofts has been found to have multiple safety defects, including dangerous cladding, lack of compartmentation."
"Which could allow fire and smoke to spread, as well as unsafe wooden balconies and faulty fire doors and smoke vents."
"Safety remediation work was due to start in July 2020, but the work is yet to start."
"One of the critical delays has been caused by Grey GR being ineligible to apply to the government’s £6bn Building Safety Fund."
"The fund is in place to help protect flat owners from the cost of addressing fire-safety risks, caused by unsafe cladding systems on high-rise residential buildings."
"Shell companies such as Grey GR are not permitted to apply."
"Flat owners at Cardinal Lofts are still facing service charge demands for building safety costs in excess of £12,000, and that is before the work even starts."
"Alex Dickin, a flat owner at Cardinal Lofts and member of campaign group Ipswich Cladiators said It is great news that the court has recognised Grey GR, aka £35bn Railpen must take some responsibility here."
"Despite this, we are still in a position of total uncertainty, not knowing when our building will be made safe, if our property values will be restored, or what life-changing bills the safety works may force upon us."
"Grey GR invested in Cardinal Lofts in 2018 – they should maintain their investment, not allow it to diminish. "
"It’s time for Grey GR to step out of the shadows and for multi-billion-pound Railpen to take responsibility and pay for making our homes safe. "
"What would Railpen’s pension scheme members think about them allowing home owners to suffer this nightmare and remain trapped with unsafe, valueless and unsellable homes?”
In an interview with Alex, he told us the court case was a "section 20 dispensation hearing, and it basically means that our building owner applied to the courts. To not run through the usual consultation process in terms of the cladding works on the outside of our building."
He told us that when going into this hearing, the tenants had some conditions they wanted to put forward, and some were accepted for example they tenants do not have to pay their own legal costs.
Alex confirmed "The building owner is covering all of our legal costs."
Meaning " £10,000 across the whole building saved."
Another condition that was met, is that the tenants will receive regular updates. This brings huge relief as Alex describes
"One of the frustrating things is how you feel left in the dark from your building owner. You go through...years without knowing what's actually happening in the background."
"So hopefully with that condition in the courts, we're now going to be updated on a much more regular basis."
He also went on to say.
"This is a series of recommendations from a government committee, and if the government do decide to implement all of these recommendations, then it is great news."
"And given the various other crisis happening in the world, Ukraine and the cost of living, I would suggest it's a easy win."