About that £4million Talacre debt…
21 October, 2021
The development on land next to Talacre park
• MANY readers will have followed the situation on the Talacre development known as Prince’s Park, (Blunder robs Town Hall of millions, June 3).
The flats were completed and occupied in 2014. Any profit, as defined in Camden’s agreement to sell the land needed, was to be shared between the owner and Camden, an arrangement known as “overage”.
After numerous requests for information from Camden, they have confirmed only in the last year that the owner, the freeholder, owes Camden a substantial amount of overage; but they say they have difficulty in collecting it from the owner who is in the British Virgin Islands.
Also in the last year we have received legal advice the precise text of which is: “These documents like the Land Sale Agreements are binding on successors in title which will include future purchasers of the freehold land and leaseholders of the flats. So, all persons who own Talacre whether freehold or leasehold are subject to these agreements”.
That overage agreement allows Camden, in the event of a dispute, to appoint an “expert”. Camden has so far been unwilling to do that which leaves the obligation of paying overage hanging over not only the owner of the freehold but also the leaseholders of the 36 private flats.
So until the overage obligation is satisfied, one way or another, any buyer of a flat should be advised of this potential liability and take it into account; a highly unsatisfactory situation for the existing leaseholders unless they persuade Camden to declare that the overage obligation has been fulfilled.
I estimate the amount due to be in the region of £4million. Camden says they believe it is not so much but that it is “substantial”.
The land was sold for £325,500 based on the estimated selling price for the private flats of £8,819,500. Those private flats were sold for £20,757,590, hence the overage that becomes due.
So it is clearly in the interests of the existing private leaseholders, as well as us Camden citizens, to enforce the overage agreement and make the owner / freeholder in the BVI pay what it owes to us.
Until that happens the leaseholders will suffer unless Camden in some way declares that the overage agreement no longer applies. Can they do that? Should they do that?
Therefore it is up to all of us, voters and councillors, to require that Camden continues to claim the overage and to set in motion the defined way to establish how much is owed and then to demand it from the freeholder.
St Ann’s Gardens, NW5