A High Court ruling has allowed Gems House Residences to refurbish 16 affordable flats in Marylebone and rent them at market rates. Westminster City Council aimed to maintain these flats as affordable housing, referencing a Section 106 agreement from 2013 with a mortgage exclusion clause. The properties transitioned through various owners starting with social housing providers before being acquired by Gems House after Kinsman's deregistration. The judge affirmed the mortgage exclusion clause applies, enabling a market rental increase that could generate significant annual revenue. Westminster plans to appeal the judgment.
"Judge Hodge ruled in favour of Gems House Residences, allowing refurbishment and rental increase of 16 flats in Marylebone, highlighting the validity of the mortgage exclusion clause from 2013."
"Westminster City Council argues the mortgage exclusion clause should not apply to Gems House since Kinsman was no longer a social housing provider during the transfer, but the judge disagreed."
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