Bemerton estate demolition means leaving the place we love

Published: 18th March, 2011

• ISLINGTON Council’s recent plan to demolish the entire Bemerton estate as part of a complete redevelopment has caused a huge stir among leaseholders (Demolition remains an option, March 11). 

Despite 53 per cent of leaseholders voting against the plan, the council seems determined to go ahead with it.

Although the estate is relatively young – some of the buildings are barely 30 years old and everything is in fairly good condition – the leaseholders would be happy to support total redevelopment with the expectation that they can benefit from the new estate. 

However, after the latest drop-in session last week, most leaseholders feel they would be forced to take whatever offer the council and the developer put on the table and leave for good the area they have lived in and loved. 

That’s why more than half of the leaseholders favour option 1, which is no major work to the estate. If they are forced out of the neighbourhood, no matter how wonderful a benefit the redevelopment can bring it would become irrelevant.

In the last meeting of Bemerton leaseholders in January, one of the main issues raised and supported by most leaseholders was the possibility of like-for-like exchange in the new-built estate for those who wish to remain in the area. 

This has been bluntly ruled out recently. The best offer so far is called half-equity, which means the leaseholder owns half of the new flat and pays rent on the other half. This is ridiculous, especially for elderly residents who suddenly become a tenant from being a home-owner, let alone those who still have big mortgages on their property.

It seems leaseholders would have no other choice but to sell to the council. The first problem will be the fairness of the valuation. Some bought a property in 2006-2007 at the height of the market and are highly likely to be worse off, even out of pocket. 

Then, as the redevelopment is delivered in phases, the timing of the valuation and the ultimate sale could make a significant difference as the property market could go up or down. The whole thing would become a lottery. 

Finally, the meagre 10 per cent compensation currently proposed can hardly cover any loss a leaseholder incurs in the process. It would be even harder to swallow while the developer is making hundreds of millions out of this scheme by forcing us out of our homes. 

Other issues raised were the cost of moving, capital gains tax, legal costs and recovering the costs of improvements made by leaseholders to their flats.

Bear in mind that all these issues arise from the sale of property that leaseholders do not wish to leave but have no other choice. Yet none of these questions has been answered.

As a leaseholder, I spent hundreds of thousands of hard-earned cash on my flat so I could live in a decent-sized property in a location I love for its convenient transportation links and close proximity to central London. 

I cycle to work and walk to Angel for my shopping. If forced out of the area, I would have to spend much more money and time on commuting as I could not afford to live in similar areas. Others bought property as an investment, as the rental income plus the equity appreciation are immense compared to other areas. 

The council insisted that it is still too early for any decision so the residents should not speculate. But for leaseholders, their interests and even livelihoods are at stake. Until the council comes up with a comprehensive package covering leaseholders’ concerns, no one will feel at ease.

The leaseholders of Bemerton are working with Islington Leaseholders Association, an independent organisation representing all leaseholders, to try to get our voice heard.
Kane Zhang
N1

• YOUR article on the Bemerton estate was wrong to suggest that the estate will soon be knocked down and redeveloped (Majority say yes to pulling down estate, March 4). Residents on the Bemerton have been giving feedback to a consultation on several options for the future of their estate. These options have been suggested as possible ways to help tackle anti-social behaviour and increase the number of family-sized council homes.

Some residents favour full-scale redevelopment, others want it left as it is and some favour a mixed option of partial redevelopment. The council will use the in-depth results from the consultation to help decide in June whether to draw up more detailed plans for improving the estate. Residents would be fully involved in developing any such plans.

Only once residents had had the opportunity to express their views on any future, more detailed proposals would the council make a decision on whether the scheme could get the go-ahead. This would not be until at least autumn 2012.

To find out more, contact the project manager at Homes for Islington, David Ronan, on 0207 527 7579 or david.ronan@homesforislington.org.uk or the council’s representative, Bryony Willett, on 0207 527 7713 or  bryony.willett@islington.gov.uk.
Denise Lewis
Head of housing strategy and development,
Islington Council