ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

London housing association let £25,000 debt pile up on empty flat after death of shared owner

A large London housing association has allowed more than £25,000 of debt to build up on a flat that has been empty for more than two years since its shared ownership resident passed away.

Linked InTwitterFacebookeCard
Ms Plowman with her granddaughter shortly before her cancer diagnosis in 2017
Ms Plowman with her granddaughter shortly before her cancer diagnosis in 2017
Sharelines

London housing association let £25,000 debt pile up on empty flat after death of shared owner #ukhousing

A large London housing association has allowed more than £25,000 of debt to build up on a flat that has been empty for more than two years since its shared ownership resident passed away #ukhousing

Retired NHS radiographer Lois Eva Plowman, 69, died from cancer in January 2018 with her 25% equity stake in her A2Dominion shared ownership flat in Chelsea then passed to her daughter, Penny Ashcroft, as executor of the estate.

Ms Ashcroft told Inside Housing that the flat has since been empty, and the 38,000-home landlord has not offered to buy back the flat or allowed it to be sublet to another tenant. Instead, unpaid rent has piled up as Ms Ashcroft has tried to sell the flat, with A2Dominion telling her in late January that she owed £25,157.98.

The flat is currently under offer, however three sales have already fallen through. Ms Ashcroft estimates that if the current sale completes, she will owe A2Dominion around £30,000 in rent once deeds are transferred.

The association said it was sorry to have “added to her stress at a very difficult time”. The association also said previously that it would not buy back the share because “downward staircasing is only considered in cases of severe financial hardship”.


READ MORE

Clarion apologises after accidentally overcharging hundreds of residentsClarion apologises after accidentally overcharging hundreds of residents
London housing association breached Home Standard over electrical and asbestos safety failingsLondon housing association breached Home Standard over electrical and asbestos safety failings
National Housing Federation launches shared ownership campaign with 40 associationsNational Housing Federation launches shared ownership campaign with 40 associations

A2Dominion sent a letter to Ms Ashcroft in March 2019 informing her of its plans to issue a notice of seeking possession for the property, “due to the level of debt on the account and the amount of time that has passed since the debt started to accrue”. It added that court proceedings would be delayed during the process of selling the flat, providing it “received monthly updates with regard to the sale”.

Emails and letters between Ms Ashcroft, her solicitor and A2Dominion appear to show the association not responding to queries on several occasions about the possibility of subletting the flat to cover the £1,000-a-month rent until it is sold.

Shared ownership leases do not allow subletting – but A2Dominion had told Ms Ashcroft that “under exceptional circumstances we may consider granting approval to sublet for a short period of time”.

In August 2019, A2Dominion finally issued Ms Ashcroft with a memorandum of agreement to sublet the flat but did not progress the offer after she responded.

Ms Ashcroft has also claimed that the association has to date failed to respond to a February 2019 request from her solicitor for a copy of its policy following the death of a shared owner.

Meanwhile, A2Dominion has continued to chase her for the rent owed on her mother’s flat, despite her telling the association it was “extremely distressing”. Ms Ashcroft has also argued that the flat’s lease, which requires a fixed sale price, has made it harder to sell the flat.

Ms Ashcroft said: “If they had allowed it to be sublet or bought it back, no debt need have built up. As it is, when the £25,000 and growing debt is cleared and legal costs paid, what Mum was told would be a good investment will have turned out to be nothing but a sinkhole.

“Losing a loved one is a distressing time. But the anguish that A2Dominion have caused is on quite another level.

“There being such a shortage of affordable homes, particularly social housing, it is scandalous that A2Dominion have insisted that this flat remain empty for two years whist allowing this debt to build up. My poor mum would be howling in her grave.”

Nicki Morrison, director of residential services at A2Dominion, said: “We would like to extend our condolences to Ms Ashcroft and we are sorry that this has added to her stress at a very difficult time.

“As a form of affordable housing, shared ownership homes are bound by restrictions on subletting so that they are used by people the who need them.

“However, given the circumstances we extended an offer that would have allowed Ms Ashcroft to sublet the property. We regret that we have not progressed this offer since then and we are working with her to find a resolution.

“Shared ownership is a great option for many people and helps them to buy a place of their own. We are sorry that on this occasion it has not been a positive experience for Ms Ashcroft.”

Sign up for our daily newsletter

Sign up for our daily newsletter
Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.