A Devonshire resident has spoken of concerns that the Bermuda Housing Corporation has capped the sales price of leasehold homes in Prospect and Cedar Park.

The woman ? who asked not to be identified ? said that some properties are worth more than the $290,000 limit which the corporation set out in a letter sent to residents two years ago.

?I think I speak for everybody in both neighbourhoods when I say that people have upgraded their places. With the amount of money that they have invested it?s not fair that there should be a cap on the price if we were to sell them,? she said. ?Where are you going to buy another place for $290,000? You can?t these days. A one-bedroom home starts at over $350,000.?

The letter, dated May 5, 2004 and signed BHC General Manager Vance Campbell, appears to have gone to all residences on the estate roads at Mary Victoria and Alexandra Roads, plus Greenwich Lane and Cedar Park.

It says that if residents wish to sell their interest in the leasehold, and the purchaser requires a mortgage, the consent of the BHC must first be given or the mortgage will be void ? leaving the lender in an unsecured position.

It explains that the original intent of the housing developments in question was to provide first-time homes at the lower end of the price range. It goes on to state that the BHC had recently had two independent valuations done on the leasehold interest in a typical three-bedroom property, which were $280,000 and $305,000. The letter informs residents that the values, ignoring inflation, would decline over the remaining life of the lease.

?Given the above valuations, the decline in value over the remainder of the lease and the original intent of the leaseholds, the Bermuda Housing Corporation would like to inform you that it will not give consent for mortgages on the leasehold properties at Prospect and Cedar Park in which the sales price in the transaction exceeds $290,000,? it says.

The letter explains the Corporation ?is now compelled to set a ceiling price? because of the continued rise in real estate prices.

However, the worried resident said she and her neighbours feared they would lose out financially through having worked hard to improve their homes.

?Some people have done some fantastic renovations and spent quite a bit of money on their places, especially on the interiors. This has created a lot more value ? one lady even has a Jacuzzi. For them (the BHC) to tell us that we can only sell them for $290,000 is wrong. I know for a fact that one lady wanted to sell hers, and when it was appraised the value was more than $350,000,? she said.

She expressed her desire for the long-held goal of having the leasehold interests on the properties converted into freehold interests through the creation of a Condominium Corporation.

?That would mean that the BHC no longer have control over what we do. We are looking at maybe going back to the table with them and discussing freehold,? she said.

However, she doubts this will be achieved in the near future due to unresolved maintenance issues that exist with the ageing housing complexes, although Housing Minister David Burch has pledged action on these.

?It?s a Catch-22 as all the problems that need to be addressed would become ours,? she said, adding: ?We are feeling disappointed and disheartened.?

Devonshire South Central MP and Opposition House Leader John Barritt recently voiced concern about the issue in the House of Assembly after receiving a letter of complaint from a resident trying to sell his home. He told he had taken up the cause as Cedar Park and Mary Victoria Road fell within his constituency prior to boundary changes in 2003 and he still has friends in the area. He described the restriction as ?unfair and wrong? as it was not set out in the original leases on the homes 30 years ago.

He said some residents had had their homes valued at more than $290,000 and expressed concern that the letter had been sent as a ?bullying? tactic because residents were at that time opposing further development in the Mary Victoria Road area.

Glenn Blakeney ? the PLP MP within whose constituency most of the homes are situated ? said they were not built to benefit ?real estate prospectors? but to provide affordable houses. However, he indicated that the $290,000 limit policy was ?not totally set in concrete? and that each proposed sale would be considered on a case-by-case basis.

?There has to be flexibility. The Government is a flexible Government,? he said, adding that the intent was not for people ?to be penalised by the success of the economy.?

Mr. Blakeney said progress was being made toward resolving maintenance issues in the area and converting the leases to freehold, and added: ?Mr. Barritt doesn?t seem to have enough to keep him occupied in his own constituency.?approached the BHC for a response to the claims. However, a Government spokesperson said that the Ministry of Works and Engineering and Housing ? under whose umbrella the BHC falls ? did not wish to comment.