A host of Appleby tenants are in fear of being made homeless as their homes are being sold from under them.
Already several properties previously belonging to Maurice Bailey have been sold, after his business went into receivership earlier this summer.
More properties are going to auction this week including a whole row of houses in Hoff.
Those up for auction include private homes housing young families and older, vulnerable residents, as well as sitting tenants running businesses including the Kings Head pub on Bridge Street, and two listed buildings.
The sale of the properties has come as a painful shock to many of Mr Bailey’s tenants, with some saying they received no notice of the action.
With a shortage of private rental properties available, Appleby councillor Karen Greenwood said many have been left fearing they will be homeless.
Going to auction on Thursday through SDL Proprety Auctions are Hoff Cottages — a row of four properties in Hoff, two of which have tenants, for £225,000-plus (all plus fees).
In Appleby
- Flats two, four and six Eden Place — a block of apartments with a guide price of £100,000-plus
- 17 Bellevue Road — a two bedroomed terrace for £95,000-plus
- 7 Bongate — a semi-detached property at £90,000-plus
- Ingleborough and The Cottage — a semi-detached house with a guide price of £170,000-plus
- 30 Boroughgate and Red House Cottage — a block of self-contained apartments at £325,000-plus
- The former White Hart Hotel — a Grade II listed former hotel with a guide price of £90,000-plus
- The White House — a substantial Grade II Listed, mixed use property comprising of tenanted offices and part-tenanted, part vacant apartments, at £395,000-plus
- 3 Bridge Street — a mixed used property including a pub, cocktail bar, nine self-contained flats, a tattoo studio, music studio and office space, with a guide price of £475,000.
Councillor Greenwood, who is the Eden district councillor for Appleby, said she had been contacted by fearful residents.
Due to a number of receivers acting on different properties, tenants have faced varying experiences with communication about what is happening.
“It’s really, really difficult. The problem for tenants that want to move is that there’s not much property available for them to rent. People are worried because their future is uncertain,” she said.
Coun Greenwood added that although properties can be sold with sitting tenants, it is up to the new landlords if they want to continue or serve notice for tenants to leave the properties. However, three months’ notice must be given.
The district council’s housing team is working to help and support affected residents and identify possible future housing available to them along with temporary accommodation. Tenants affected are urged to contact the team as soon as possible.
One current tenant whose rental property is going up for sale said Mr Bailey has neglected his properties for years due to his declining finances, leaving many in “a terrible state”.
This combined with the inability to get reasonable insurance for the buildings close to the river is behind the seemingly low prices.
Although in a comfortable position herself she has heard from residents who are scared their homes will be “ripped from under them”.
Having spoken with Mr Bailey, she also alleges that more of his former properties could go up for auction in the coming months, including his own home.
Bucking the trend is Martin Railton who lives and works in The White House. Despite the threat to his home and archaeology business, he is remaining upbeat.
He said: “The management company has been very good with us and kept us informed about everything that is happening.”
He added that there was always going to be uncertainty surrounding such sales but he remains optimistic that he will remain as both a business and residential tenant.
Mr Bailey, 81, is believed to own hundreds of properties in Appleby, Penrith and further field. The number of properties now in the hands of the receivers is unknown.
Receivership, formally known as administrative receivership, is a legal process whereby a receiver is appointed by a floating charge holder such as a bank or other lender. The receiver then “receives” any of the assets of the company that it can liquidate in order to pay back the lender.
Mr Bailey previously told the Herald he had gone into receivership as a result of the COVID-19 pandemic impacting on his business.
He said some tenants put on furlough over the past year had not been paying their rent which meant he was unable to pay towards his own financial commitments.
He had also been unable to fill vacancies in a number of letting properties which had a knock-on effect.
The landlord has previously faced a number of court appearances when he was prosecuted and fined for failing to maintain properties in Appleby’s High Wiend and Clifford Street.
