Capping the resale value of Bermuda Housing Corporation homes at Prospect has some homeowners seeking legal advice.

Homeowners were recently reminded that they were in fact tenants because they had purchased 99-year leases.

And while they are free to sell their leaseholds the quango said that they would not allow any mortgage backed sale at more than $290,000.

Spokesperson for the Mary Victoria and Alexandra Road community Albertha Waite said the news had concerned some residents. ?Somebody was trying to sell their apartment and I think Housing felt it was exorbitant,? she said.

?My only concern is that we have been fixing up the places and they are kept up really nice. They have actually invested and made additions and so they have to take into consideration the value of what that cost and look at today?s real estate value. I understand the cost should be affordable but you can?t expect to sell it for what it sold (for) 30 years ago.?

She added that while the property is leased, the residents own the buildings.

?They are disappointed that Housing wants to stipulate what they should sell the places for.

?I do know that people have sought legal advice as to where they stand.?

But she added that not a lot of people were hoping to sell their properties.

Two independent groups valued the three bedroom houses at $280,000 and $305,000. BHC picked the midpoint as their maximum resale value.

But manager Vance Campbell has stressed that their limit only applies to mortgage backed sales. The 99-year leaseholds were purchased some 33 years ago for around $26,000 each, meaning that buyers only have 66 years? use of the homes now.

Meanwhile the community is waiting patiently for a final resolution of their dispute with Government over plans, now stalled, to build more housing units in the area.

Residents had opposed the plans and Government agreed to seek a compromise.

Mrs. Waite reported that BHC had since been quick to respond to concerns about public nuisances and maintenance issues.

?Right now we are just observing the Minister and he seems to be making strides in housing people,? she said.

?I believe in giving credit where credit is due and he is looking at alternatives.?