Flat owners in Gateshead’s Staiths South Bank development say they are facing a “frightening” £1 million bill after being told six lifts need replacing.
Leaseholders in the Grainger and Stephenson blocks claim they have been informed they may each need to contribute around £18,000 on top of their annual service charges, which already approach £3,000.
Concerns Over Unexpected Costs
Managing agent Brannen & Partners stated that the lifts, installed in 2004, are now at an age “where reliability will continue to deteriorate.” However, residents argue that they have been making additional payments of £480 per year towards lift maintenance and question why those funds have not covered the expected replacements.
Stephen Dean, a leaseholder, expressed frustration over the unexpected financial burden. “You know a lift has a shelf life. Twenty years has been mentioned, so for the last 20 years Brannen & Partners and RMG have known that,” he said. “It’s frightening.”
With some apartments valued between £120,000 and £150,000, and larger ones around £200,000, Dean noted that the £18,000 contribution represents a significant financial strain for many residents.
Controversy Over Voting Process
Leaseholders were invited to an Extraordinary General Meeting (EGM) in December to discuss the issue. A vote was held, with 10 out of 19 participants supporting the lift replacements. However, some residents are now contesting the decision, claiming they were not properly informed in advance.
Dean highlighted concerns raised by other leaseholders, including the financial impact on those unable to afford the contribution. “One resident was asking what happens if they haven’t got £18,000 or can’t get it added to their mortgage,” he said.
Brannen & Partners reportedly assured residents they would try to facilitate a support plan, but leaseholders argue that many questions remain unanswered.
Lift Parts Becoming Obsolete
Brannen & Partners defended the decision, stating that the type of lift used in the buildings is no longer being manufactured. Experts have advised that lifts typically have a lifespan of 20 to 25 years, and the managing agent believes a replacement plan should be considered before parts become unavailable.
The company insists that the issue has been discussed for several years and that residents were provided with meeting minutes detailing maintenance concerns. They also stated that leaseholders received proper notice for both EGMs held in 2024.
“As was stated at the EGM [in December], any lift replacement programme is many months off as legal consultation processes must be followed,” a Brannen & Partners spokesperson said.
Former Management Firm Distances Itself
RMG, which managed the buildings until 2017, expressed sympathy for the affected leaseholders but maintained that it had left the buildings in good condition with an “appropriate amount of reserve funds for any unexpected or long-term issues.”
The company also noted that during the final two years of its management, residents acted as directors overseeing the buildings’ finances, meaning they had direct control over budgets and expenditure decisions.
As leaseholders face uncertainty over how to cover the costs, questions remain about the long-term financial planning for the buildings and whether better foresight could have prevented this sudden financial burden
