November 21, 2024
Your board met in mid November and just about the only topic discussed for more than two hours was the cost of the urgent repairs – the leaking parts of the roof and the steel balcony railings.
We decided to prioritise the roof, chimney and steel repairs because we need a roof which keeps out the rain and because you can all see the steel work.. Hopefully there will be a test area soon so you can see how the new balustrades will look. The chimney money is already collected, so that work can also proceed in 2025
These works will be very expensive, (£1.2m) at the moment these works are out to tender.
And then we will be able better to quantify the costs for each owner so you will know exactly what you are facing.
The good news is that once these works are done we are sure the flats will become mortgageable again. At the moment a top floor studio flat which sold from plan at £110K from new is now worth £45k-£50k but only to a cash buyer. When the works are done that should return to £110k and then start to rise. (This is owned by one of the directors. and is a so you can see your board has every motivation in getting the works done) The plan is for all the work to be done by end 2026
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Payment pain can be softened a bit by setting up a standing order for monthly payments. (contact Homestead for how to do this. You remain fully in control of payments of course.
The bill I am expecting is for over £for a small studio on the top floor mwhile most flats will be between £10k and £15k
We asked a local mortgage broker: ‘Based on listed building / 100 years left on lease at time of application, 5 floors over 18 meters with 2 lifts.
As long as the property values up all okay, then we will be able to get 75% LTV out of the property based on the rental income being £950pm.
Based on your personal circumstances, we would be looking at someone like Paragon who are currently offering rates starting from 4.84%. working on a value of £140,000, 75% would mean that we could get a mortgage amount of around £105,000. ‘
Paperwork on planning, listed building consents and building regs – not to mention such new hurdles such as a bat survey have now been mostly completed
This means we are now free to progress the works.
We have the updated costs from the contractors for a reduced package which addresses the roofing and works to walls at roof level and which brings works costs down within more acceptable parameters
Pre Start and final Building Regs application will be a direct appointment by approved inspector. This will allow us to proceed as soon as we are ready.
Next year we also plan to increase the general amenity of the Mill grounds. Plans include increased planting, a small play area for young children, more seating, a smoking area away from the main entrance but sheltered, a barbeque area, outdoor lighting and (possibly) charge points for electric vehicles. Please let us know if there is anything else you would like to see.
