Help to Buy homeowners affected by Grenfell-style cladding threaten legal action
A family who bought a flat with Grenfell-style cladding using a Help to Buy equity loan mortgage are threatening to sue the Home and Communities Agency, The Guardian reports.
The property owner Nerisa Ahmed, a lawyer, and her husband saw the value of their flat fall from £600,000 three years ago to £90,000 owing to the flammable cladding.
They claim the agency that administrates the Help to Buy scheme, Target HCA, agreed to write down £102,000 of the £120,000 equity loan in April but have since gone back on that promise.
Instead the agency is said to be seeking guidance from the government on what to do next.
Last month a number of mortgage experts urged people living in properties with flammable cladding to play a waiting game and postpone selling up until the issue is resolved.
New Capital Quay has almost £2,000 homes with Grenfell-style cladding.
Replacing the cladding could cost between £30m and £40m, but there is currently a blame game going on regarding who should pay.
The developer Galliard Homes and warranty provider National House Building Council are locked in a dispute regarding who is liable that could take years to resolve.