Developer debt renders London flats unsellable
Original Article Summary
Seventeen leaseholders in an east London block cannot sell their properties due to an £850,000 debt owed by developer Restoration Hackney to Hackney council. The debt, unpaid since 2017, has made the flats unmortgageable as buyers would potentially be liable if the developer enters bankruptcy. The post Developer debt renders London flats unsellable appeared first on PropertyWire.
PropMatch Curated Analysis
Seventeen London leaseholders cannot sell their flats due to £850,000 in unpaid developer Section 106 contributions, as potential liability makes properties unmortgageable. This case highlights critical leasehold ownership risks where leaseholders bear consequences of developer defaults.
Investor Relevance
Critical for leasehold investors as it demonstrates how developer Section 106 debt can make properties completely unsaleable and unmortgageable. Shows importance of thorough due diligence on developer compliance and potential future liability when acquiring leasehold properties.
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