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Desperate landlord writes to Gove as bankruptcy looms over cladding rules

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A landlord who's facing bankruptcy has written to Housing Secretary Michael Gove voicing his frustration that he is not eligible for any cladding funding despite only earning �63 a week from his properties.

The landlord, who has BTL interest-only mortgages, has two freehold semi-detached houses and three leasehold apartments, two of which are over 18 metres in height and need cladding remediation. However, because he owns more than three properties, he's not covered by any Building Fund financial package.

'Over the last 11 years my real profits from all five BTL properties, after expenses, including insurance, management fees, new boilers, new roof and new windows amounts to an average profit of �276 per calendar month, or �63 per week,'� he explains.

'My BTL mortgage payments have doubled since December last year and I am now in the red every month and making up the shortfalls from savings.'�

He believes it's unfair that someone with three �1 million apartments is covered and deemed a '�victim' of historic failings, yet he is on the cusp of bankruptcy.

Sink or swim

He tells Gove in a letter also sent to the Leasehold Knowledge Partnership: 'Whether I sink, swim or just tread water is something I accept.

"My investments have not worked out and I have to deal with the consequences. But what I absolutely do not accept is being made liable for cladding works where an arbitrary cut off point has been made that bears no relation whatsoever to income reality.'�

The landlord has had the same tenants in his freehold houses for the last 11 years but might have to sell them to subsidise the other three leasehold properties '� and that's without even considering the cladding costs. Those tenants will be evicted, he adds.

'Another consequence of punishing small scale landlords for the large-scale historic scandal created by government, its agencies and big business.'�


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