Stress and cost of leaky home destroys marriage

Vera and Louis Lipschitz. Photo / Herald on Sunday

A separated couple have told how their leaky home nightmare drove them apart, prompted counselling for depression and left them about $120,000 out of pocket.

Vera and Louis Lipschitz bought a three-bedroom house in Remuera, Auckland, because its Mediterranean style and lightness reminded them of being on holiday.

The Monteith Cres property cost $385,000 in 2004 but the couple were eventually faced with a $200,000 repair bill.

They first noticed something was wrong when they spotted a small mark on the garage ceiling before going to visit Louis' family in South Africa.

"Before we left there was a tiny brown mark," said Vera, 34. "We didn't really think that much of it, but when we came back the spot grew bigger."

The couple eventually made a claim to the Weathertight Homes Resolution Service - a Government agency set up to help homeowners affected by the leaky building crisis.

A confidentiality agreement prevents them from discussing details of their settlement, but they can still talk about the stress the process caused.

Louis, 45, said he had a sense of the magnitude of their financial plight early on, and the stress of the situation built.

"I got pretty stressed. It doesn't go anywhere it just drags on to depression and that had quite an adverse effect on our marriage."

Louis started seeing a clinical psychologist and still has regular appointments.

Vera said she tried to be positive and hoped they could avoid the "worst case scenario".

"This has definitely contributed mentally ... the torture of the unknown and the pure stress of the whole process.

"We just lost the ability to deal with any of the normal stuff. It came to the point when we realised we couldn't carry on any more."

Vera moved out of the house in 2007, six years after their wedding in Auckland's Cornwall Park, and the couple have started divorce proceedings.

They put the property on the market this year, but expect to be about $60,000 out of pocket each after the sale.

Vera is unlikely to be able to get a loan to cover her share after being made redundant from her job in human resources.

Despite their woes, the couple are determined to stop anyone else falling into a similar trap.

The listing for their home is headed "Leaky home seller cries for help" and features a photo of rotting timber.

The ad reads: "Our sellers have run out of time, money and energy.

Owning a leaky home has been their worst nightmare and they're over it."

But it also points out the Monteith Cres property is charming, quiet, private, elevated and enjoys lovely valley views.

The CV is $430,000 but the property is expected to "sell for a lot less".

Agent Steve Koerber of Barfoot & Thompson Remuera said it was the first time he had used a photo of leaky home damage but called it "honest marketing".

"We want to show people what they're buying and what they can expect."

Koerber said the technique had generated interest, particularly from buyers in the building industry who may be able to carry out repairs to the property themselves.

The tender process closes on October 6.

The leaky homes crisis is expected to cost New Zealand $6 billion in legal fees alone.

According to a confidential report prepared for the Government by Price WaterhouseCoopers, the full cost is estimated at $11.5 billion.