Arlington House leasees told to ‘remortgage’ get loans or ‘sell up’ to pay predicted £40k service charge to fix concrete and fire hazard issues

By Local Democracy Reporter Daniel Esson

The owners of a landmark tower block have told residents they can remortgage, take out loans or sell up if they cannot afford a likely £40,000 service charge to refurb the problem-ridden structure.

Freshwater Group of Companies (FGOC) – which owns Arlington House in Margate – was grilled by Thanet District Council (TDC) after a report revealed a number of safety issues with the 18-storey building.

The Building Safety Regulator found the 1963-built structure is posing a danger to residents and the public, with concrete cladding at risk of falling to the ground.

Now FGOC is pursuing a refurbishment plan which could cost leaseholders £40,000 each in service charges, with works due to begin in the summer.

But residents have accused FGOC of “managed mismanagement”, while famed artist Dame Tracey Emin – who lives in the town and owns four flats in the block – has said “it is morally wrong for them to put the blame of their negligence on the leaseholders”.

TDC’s overview and scrutiny committee called a special meeting today (February 11) where representatives of FGOC, one of the biggest property firms in the world, were quizzed by councillors and residents.

When asked what residents who cannot afford to pay for a possible £40,000 service fee should do, Martin Bale, company secretary of FGOC, said: “We are raising this early so that there is an opportunity for residents to seek funding in terms of bank loans, extending mortgages if they have them, taking mortgages if they don’t, making arrangements with a lender to provide the funds.

“That is one way of funding it, that’s probably the best suggestion I can give.”

But Cllr Phil Fellows (Con), chairing the meeting, retorted that due to the likely costs, the flats are “unmortgageable”.

He added: “With no disrespect, some of the residents are of an advanced age, they probably couldn’t even get a £40,000 loan if they went to their bank.

Mr Bale said there were other options, but “not options I would like to vocalise in this particular meeting,” and when pushed by the chairman, added: “the option is they can sell their flats”.

He did go on to stress that the charges of those who could not pay would not be put onto the fees of those who can, and that they would seek to arrange payment plans with residents who may struggle.

Prosecution is a “very, very last resort,” Mr Bale said.

FGOC has owned the building for decades, and took back over management directly in November 2024 through subsidiary company Metropolitan Property Realization Limited.

But residents have spoken out about their history of conflict with the owners, and claimed the firm had been hostile in communications.

At the meeting resident Mags Korczak, who has lived at the block since 2021, accused Freshwater, which is landlord of some 2,000 properties, of “notorious negligence (that has) caused misery and ruin up and down the country from high street to highrise.”

She said she felt ‘intense rage’ “waiting for the next devastating action and promises to change that are soon broken,” and said leaving her home had been made “financially impossible.”

The resident said she was equally angry with Thanet council for being ‘complicit’ and showing ‘indifference’ to decades of neglect at the building.

Mr Bale said today “it is our aspiration to return this building to the magnificent building it once was, but Rome wasn’t built in a day.

“Make no mistake, buildings require work to be undertaken to them.

“It is not neglect that a building built in 1963 in the teeth of the weather needs work doing to it.”

TDC heard there are plans for scaffolding to go up around the building, which could take three months to complete.

Steve Thorpe, of HJP surveyors, which is contracted by FGOC, detailed some of the planned improvements which would be paid for by the new service charge.

“The scope of works is renewing the main roof and entrance roof, cleaning down the concrete, undertaking concrete repairs and then treating the concrete,” he said.

“Anti-carbonation paint will give it improved endurance long term, and that will come with a 15-year guarantee.

“We’ll be overhauling the windows which will include renewing the gaskets to make sure they’re weather-tight and cleaning them.”

But Ms Emin, who did not attend the meeting but sent a statement to TDC, said it is “morally wrong for FGOC to put the blame of their negligence on the leaseholders”.

She said: “Why, when I have only owned my flats for four years or less, am I being held responsible for years and years of constant neglect by Freshwater?

“The slow erosion and damage to Arlington House is due to the wilful lack of responsibility by Freshwater to protect and look after it,” she said.

During the meeting, Cllr John Davis (Con) cited a report highlighting the risk of falling concrete from the building from 2015, though a net and scaffold at the lower levels of the building were not installed until some years after.

Cllr Rob Yates (Green), who used to live in the building and represents its residents as one of their ward councillors, described FGOC as “terrible,” and said it has shown “a pattern of avoiding, disregarding and ignoring residents entirely.”

He proposed a motion, seconded by Cllr Becky Wing (Green), to commission a third-party report on whether FGOC is “fit for purpose” adding “if it is shown Freshwater is not fit for purpose Cabinet may want to explore the ramifications of that with the Building Safety Regulator.”

However, this was defeated, though the committee voted unanimously to ask for TDC’s director of place to report progress in three months, and to summon FGOC again in future.

Following the meeting, Cllr Helen Whitehead, Deputy Leader and Cabinet Member for Housing, said: “Our primary concern is, and will always be, the health and safety of our residents. The current outstanding safety matters for Arlington House, Margate, must be addressed by Metropolitan Property Realization Limited (MPRL) as a priority.

“We are fully committed to working alongside other regulators, using our powers to support both the Building Safety Regulator and Kent Fire and Rescue Service in the best way possible.”

The council says it continues to work closely with national and local partners, including the BSR and Kent Fire and Rescue Service (KFRS), to ensure all safety requirements are met and remains dedicated to ensuring that all properties across the district are safe to occupy.