Legal Loans need careful scrutiny


An expert property lawyer at Thursfields Solicitors has highlighted a potential problem with the Government’s plans to finance the removal of unsafe cladding on blocks of flats. The Midlands law firm was commenting after


Housing Secretary Robert Jenrick announced that flammable materials will be removed from buildings over 18m (60 ft) ‘at no cost to residents’, but that those at lower levels will be offered loans to make their homes safe. The Government intervention comes in the wake of


the 2017 Grenfell disaster, where many tower blocks were found to be unsafe, resulting in flat-owners facing huge bills for fire-safety improvements. Darren Cox, an associate solicitor in the residential


property department at Thursfields, said that the government’s new investment of £3.5bn would come on top of £1.6bn in funding that was announced for the removal of unsafe cladding last year. He said: “The Government’s plans have only


received a cautious welcome from the housing sector because the no-cost funding available depends on whether blocks of flats are higher or lower than 18 metres. “For blocks higher than 18 metres, the promise to


replace cladding at no cost to the leaseholders will help hundreds of thousands of homeowners, who will eventually be able to buy and sell their properties again. That’s great news. “However, for blocks lower than 18 metres it’s not as


positive – with the Government planning long-term, low-interest financing to fund the work, with full details of how this scheme will work yet to be revealed.”


Mr Cox said that many people were questioning


the fairness of differentiating on tower block heights, and that the government had responded by citing expert evidence of a greater risk of death or serious injury in fires in taller buildings. The Government had also pointed out that the maximum monthly loan repayment for any leaseholder will be £50 a month, and the finance will be attached to the property, not the person. He said: “This is where the detail needs to be scrutinised. For example, a mortgage attaches to the property, and part of the conveyancing process entails ensuring that the seller’s mortgage is repaid and removed before the buyer purchases. “With that principle in mind, there needs to be


more detail about the cladding finance and how that will work. Is the loan fully repaid upon sale of the property and can the seller afford that? “If not, and the loan remains attached to


the property, will a buyer be comfortable with taking that on? And will a lender be happy? “And if the borrower was to


default on the mortgage, which loan would take priority for repayment first – the mortgage or the cladding finance? “As is often the case when such huge Government plans are announced, the real devil will be in the detail.”


High-speed offences soar during lockdown


A Birmingham lawyer says there has been a 50 per cent increase in high-speed motoring offences in the city, as empty lockdown roads tempt drivers to put their foot down.


Manjinder Kang (pictured), of


city firm Kang and Co, is a motoring lawyer who has represented high profile clients, including sportsmen and women, politicians, actors and doctors. In the past nine


months the specialist motoring solicitor has noticed double the number of high-speed offences compared to this time last year.


High-speed cases are those


where speeds are significantly over the speed limit, with a rise in the number of offences featuring speeds of over 100mph. He said: “The reduced traffic is


seeing motorists consider taking more risks on the road as they see an empty road and feel it is safe to increase their speed. “However, this runs the risk of far


more serious prosecutions than just speeding as it enhances the risk of more serious collisions which may involve fatalities.” He says the reduction in traffic


on the roads has meant drivers have been tempted to go faster, as they feel it is safer to do so with no traffic on the roads. He said: “Locally we have seen an increase in clients who say that the reason they were caught at such a high speed was because ‘the road was clear’ and as such they took full advantage of the


‘clear motorway’.” Data from the


Department for Transport shows


that during the first lockdown in March last year speeding on UK roads rose significantly. Kang and Co, which has offices


in Birmingham, Milton Keynes and London, is an independent firm of motoring experts who specialise in the full range of motoring offences from speeding and drink driving to causing death by careless driving and death by dangerous driving.


March 2021 CHAMBERLINK 61


Sector Focus


Darren Cox: Government plans on


cladding are unclear


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