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Hundreds of apartment owners may be in for a shock as a multi-million-dollar timebomb of leaky-building problems hits highrise residential buildings.
Experts warn prospective buyers to check body corporate minutes and get a building report before purchase. They warn existing owners to expect a hefty bill particularly if
their building has been clad with monolithic-style residential cladding.
One contractor repairing leaky apartments told the Herald on Sunday there was "plenty of work out there". Building consultants expect the next five to 10 years to be busy.
Several building companies have already been called in by body corporate managers and apartment owners concerned at leaks and mould in their apartments. Some have already spent millions of dollars to fix the problem with shocked owners having to fork out thousands. Some apartment owners, knowing their buildings have weathertight issues, are selling, often well below the price they initially paid.
Building company Cove Kinloch Consulting has overseen recladding of one 10-level city apartment block and stripped mouldy walls and rotting wood inside. The bill was nearly $3 million. Another development of 45 two- and three-storey apartments cost $6 million to fix.
The 29 apartment owners of a 14-level block at 97 Shortland St in Auckland City may be the next to face big repair bills. Built 10 years ago and showing signs of leaks and mould, parts of the building may need to be reclad. Earlier this year, Cove Kinloch assessed moisture levels after six owners reported water damage. Their report recommends a full reclad.
Property investor Terry Rota bought the block's penthouse for $1.3m in February but, until the Herald on Sunday called, was not aware of the report or the leaks. Rota is bracing for news that he will need to fork out for repairs.
Now, having read the Cove Kinloch report he says he realises there will be "a fair bit of work for the builders to do".
Auckland barrister Alastair Wright and his wife, Pat, looking at an apartment for their daughter, Kate, were suspicious of the price of a two-bedroom apartment which was lower than similar apartments in the area.
Alastair asked to see the body corporate minutes. One look at Cove Kinloch's report was enough to put him off.
Wright warns all prospective apartment buyers to read body corporate minutes carefully as they will be required to foot the cost of repairs in the future.
"You may even have to take over part of the litigation costs if you are suing a builder. And, sadly, if your lawyer doesn't pick it up, you have probably got a right of action against your lawyer. The leaky building problem has become so common now that most lawyers should know about it."
Operations manager for Cove Kinloch, Ted Armitage, says multi-storey apartments are expensive to fix because of the cost of renting and erecting scaffolding. Exterior cladding needs to be demolished then replaced which takes time, he says. Sometimes apartment tenants or owners are forced to move out.
Building industry experts say that some apartment blocks built in the 80s, many built in the 90s and a few built as recently as 2004 will show signs of leaks as the years tick by.
Philip O'Sullivan, a director of building consultant company Prendos, says it is impossible to give a 100 per cent guarantee on an apartment because of problems with access to the rest of the building.
"Until you pull things apart you don't really know. So, if there is a roof leak - roof gardens are notoriously troublesome - you become responsible for that as well."