1. Home
  2.  / Case Study: The Nightmare That Never Ends

Case Study: The Nightmare That Never Ends

Jo Johnson is part of a group of landlords who own 15 units in Orakei and applied for compensation for her leaky apartment rebuild under the FAP scheme


1 March 2016

The first sign of failure came when a building engineer inspected a leak in the building by opening a wall for an insurance claim. He found the cladding was not attached to the framing – there was no cavity.

The building was completed in 2003 and it took until 2013 for the owners to take decisive action to get a building report just before the 10 years.

“Then we got involved with John Gray of the leaky homes consultancy Lighthouse who was instrumental in bringing banks on board to get leaky home funding. This is after nine years. We’re still going through the process.

The reclad will cost Johnson between $75,000 and $100,000 with help from Westpac and funding from the Government.

Another investor, Jim Harvey*, bought land on the boundary of his Mt Albert home in 2001. He arranged a group homes builder to build seven apartments.

The initial design was signed off without a cavity. So John had it redesigned and paid to go through the process again. The builder ignored the approved plans and built the apartments without a cavity.

Harvey says: “I knew it was leaky when it was invasively tested just short of the 10 years.

There was no evidence internally except for one house where it leaked on the dining table, when it rained. I got the others tested and the moisture levels were high around the window sills and other places.

But the builder had since closed the company down and left for Australia.

Jim got the best lawyer he could find and pulled the builder through the tribunal process to try to get compensation. It didn’t work. He was untouchable.

“The whole process was very painful for me personally."

Jim’s houses will cost over $330,000 each. So he can only afford to do three which will cost $1million plus remediation.

“I have been able to save and capital gains means I’m not actually bankrupt. But the thing is, I did nothing.

*Name changed for privacy reasons.


Related Articles