Strata lender Lannock Strata Finance has pledged financial support for Victorians affected by the combustible cladding crisis.
Lannock CEO Paul Morton says that while the Victorian government’s response to the cladding crisis is to be commended, its overall plan required federal government support, which has already been refused. According to Morton, Lannock is ready to bridge the gap between government assistance and the total cost of combustible cladding rectification.
“Combustible cladding is a major issue facing residential and commercial strata properties across Australia – peoples’ lives are at stake,” says Morton.
“In Victoria, an estimate by academics at RMIT University earlier this year found the repair bill for all of Victoria's apartments covered in flammable cladding would be up to $1.6 billion.
“Lannock will fully fund all cladding rectification to enable owners to meet their financial and legal obligations. Lannock can act immediately to ensure the safety of all tenants in buildings affected by the crisis.
“Rectification of every strata building in Australia with combustible aluminium cladding can be financed immediately without a single owner having to increase their mortgage. To fix all buildings affected may take years. Owners can have the problem fixed immediately, rather than wait for the government processes to provide funds.
“If and when other funding becomes available down the track, owners can use these funds to repay the strata loan early. This will also assist many owners facing huge decreases in property values and severe discounts for units in buildings which are suspected of having flammable cladding.”
Pictured: Neo200, a Melbourne building which suffered a fire that spread rapidly due to its combustible cladding. Credit: neo200.com