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Islington Tribune - by PETER GRUNER
Published: 27 July 2007

‘Sell-off’ traders in mortgage crisis

HEARTBROKEN small traders desperate to buy their own properties in the “great council sell-off” are facing having to drop out through lack of funds.
Islington has been heavily criticised for planning to sell off 220 retail properties to developer David Pearl for £70m.
At least 130 traders are attempting to raise mortgages amid claims that the council’s valuation is 50 to 100 per cent above independent estimates.
Roger Adams, who employs 26 architects, is faced with re-mortgaging his house to afford the £1.2m asking price for his workshop in St James Walk, Clerkenwell. It would have been at least 40 per cent cheaper, according to independent valuations, if he had been able to buy it on the open market.
Mr Adams has until August 9 to make up his mind.
He said: “It is an incredible risk, but I have to make a decision.”
Amwell Street vet Dale Barter said businesses had had “unexpected and arbitrary” procedural issues foisted on them.
He said: “This is by a Lib Dem executive that has little will to complete the property sale to the 130 interested businesses.
“Their preferred option has always been to sell to one property developer.”
He added that the council had claimed credit for the fact that 130 out of 220 leaseholders were still in the process.
He said: “This number is falling, as many are finding it impossible to raise a mortgage.”
Mr Pearl, 61, who lives in Highgate, has maintained that leaseholders who wish to buy their property would be “getting a bargain” and those who rent would do so at the current market rate.
He added: “The occupiers are going to have the opportunity to buy those buildings at the same price that we have offered.”

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I continue to be shocked by the threatened destruction of the small businesses in Amwell Street. The shops driven out of business are likely to be replaced by national chains which add nothing to Islington where their services are already available in many places. Brunswick Square in next-door Camden is a good example of what happens. Shops I used for 30 years have been replaced by stores that are useless to me. Property prices and rents will keep small businesses away and if not the chains we will have an empty street.
Leslie Armour
The Dominican University College & The University of Ottawa