CONCERNS have been raised for low-income people in Oxford’s five towers who bought their homes under right to buy and may have to shell out £50,000 for repairs.

The new Oxford Tower Block Leaseholder Association (OTLA) – formed recently after residents were first alerted to the projected cost of their share of the works – has warned that such a bill could “bankrupt” some leaseholders in Evenlode, Windrush, Hockmore, Plowman and Foresters towers.

It has also suggested any charge would not be legal as the so-called “Florrie’s Law”, passed in August 2014, caps leaseholder repair charges at £10,000 over five years.

A statement released by the group on Sunday said: “Oxford City Council hopes to recoup around 10 per cent of the £20m works bill from leaseholders, many of whom are low-income ‘right to buy’ council tenants.

“If any leaseholders aren’t able to afford their bill, however, the council has stated it could claim an ‘equity share’ in the leaseholder’s property to the value, on which it would also implement interest at current market rate.

“This in effect would have a devastating effect on many and would likely even bankrupt some ‘right to buy’ leaseholders, who could lose equity in their homes and freedom to manage their own property.”

OTLA also noted that “Florrie’s Law”, brought in after a 93-year-old woman allegedly “died of shame” after receiving a £50,000 service charge bill, could cap what they can be charged at £10,000 over a five-year period. The law affects all council major repair or improvement works that are wholly or partly funded by government.

Residents have also been advised by local estate agents that the expected valuation increase on their flats after work will only be £10,000.

Plowman Tower resident Jenny Webb said: “What the council is doing is wrong on all levels. There is no justification and, as far as leaseholders are concerned, it is way beyond what we should pay as a service charge.”

So far 29 out of 51 leaseholders in Oxford’s towers have signed up to OTLA, which was formed after provisional costs for the works were sent out in January.

The final cost will be added to service charge bills in September after a determination from HM Courts & Tribunals Service.

Stephen Clarke, head of housing and property services, said: “The council has held intensive consultations with all residents over the last couple of years. We have also taken the unusual step of applying to the Property Chamber of HMCTS for a determination on what a reasonable charge is.

“Any legal action that the leaseholders may take independently would therefore fall under the same hearing.”  

FLORRIE’S LAW

A set of measures protecting leaseholders from extortionate bills – known as Florrie’s Law – came into effect in August 2014.

Local Government Secretary Eric Pickles introduced the cap after Florence Bourne, 93, of Brentwood, was landed with a £50,000 bill by the local authority for roof repairs.

Ms Bourne died of a heart attack shortly after. Her family said she “died of shame” because she had never been in debt in her life and could not afford to pay.

The new legislation affects councils and housing associations and forces them to limit the amount they can charge for future major repair, maintenance and improvement works when they are wholly or partly funded by government. 

Outside London the maximum level is £10,000 over five years. Authorities will bear the outstanding costs of the work themselves. An estimated four million residential properties in England are subject to a long lease.