Leaseholders reject buyback offer at unsafe flats

Around 100 residents of the nine-storey block were asked to leave their homes in February

A landlord that offered to buy back the leases of 80 flats in a tower block found to have serious safety defects said less than half had accepted the offer.

Cardinal Lofts in Ipswich, Suffolk, was evacuated after a fire service report deemed it unsafe.

A campaign group set up on behalf of leaseholders said it was concerned that buyback offers would include deductions to cover "historic building safety costs".

However, freeholder Grey GR said it had not issued "any communications regarding service charges related to building safety costs".

A statement from the company, which is owned by a £30bn pension fund, said the offers were based on "market valuations from three independent and reputable surveyors".

"The valuations assume no building safety issues are present," added the spokesman.

"Given due consideration to our fiduciary duties and the disproportionate costs of any remediation options, we are confident that this is the best outcome possible."

The leaseholders have been offered undisclosed amounts of money to sell their interest in Cardinal Lofts

In a statement, campaign group Ipswich Cladiators said: "Until full disclosure of costs, it is impossible to accept these buyback offers, in fear [that] additional, unspecified service charges will be revealed towards the point of completion.

"Many homeowners remain in limbo, unable to move on with their lives and fearful for their financial futures."

Cardinal Lofts is one of several properties across the town that were identified as having combustible materials in its cladding.

About 100 residents of the nine-storey block were asked to leave their homes in February after a safety report found they were in immediate danger from fire.

During the previous November, the upper floors were evacuated late at night when they were deemed unsafe for occupation.

Grey GR commissioned surveys that identified 17 separate defects including a lack of fire stopping, inadequate plumbing and a failure of structural reinforced concrete at basement level.

Leaseholders were informed the upper part of the building, consisting of floors 5-9 and which were added in 2015-16, were built using lightweight steel that was not of an adequate strength and quality.

Seventeen separate defects were identified at Cardinal Lofts following so-called "intrusive" surveys

In the offer letter to leaseholders, Grey GR said it had "no way" of knowing the extent of the issues in Cardinal Lofts when it took control of the property.

Ipswich Borough Council previously declined to comment when asked why the building was signed off despite not complying with building regulations at the time.