The Sunday Times is reporting on a London couple narrowly avoided a financial nightmare — and their experience underscores how the Building Safety Act 2022 continues to unsettle flat sales, years after the Grenfell Tower tragedy.

Indra Mukharji and his wife were on the brink of buying a £1.285 million flat in Canary Wharf when they discovered they could face up to £100,000 in safety-related costs over the next decade — despite the building appearing safe on paper.

Solicitors remain wary of these transactions. Some are refusing to act, or failing to catch risks buried in outdated surveys or ongoing inspections. Laurie Carruthers, solicitor at FBC Manby Bowdler, warns:

“The act is not clear and in some areas is contradictory. We’re trying not to take on cases.”

The Building Safety Act protects most leaseholders in buildings over 11 metres (about four storeys) from cladding-related costs — but gaps and grey areas persist. For buildings with flammable balconies, faulty barriers or those owned by small freeholders, residents may still face capped (but substantial) bills:

• £10,000 (£15,000 in London) for flats over £175,000 (£325,000 in London)

• Up to £100,000 for flats valued over £2 million, paid over ten years

The Mukharjis’ case was particularly alarming:

• The flat had an EWS1 certificate, yet a new inspection was underway

• Their second solicitor missed this, along with potential liability

• Government valuation rules assessed the flat at £2.43m, not the agreed price of £1.285m — doubling their cap from £50,000 to £100,000

Faced with that uncertainty, the couple pulled out.

This case reveals an urgent need for clarity, solicitor guidance, and possible reform. Until then, leasehold flat buyers and sellers — particularly in buildings over 11 metres — must tread carefully, as hidden liabilities could derail sales or trigger life-altering costs.