north lincolnshire homes leaseholders contents introduction 1 the lease 1 buying a lease - as an existing tenant 1 buying a leasehold property on the open market 2 leaseholder rights & responsibilities 2 north lincolnshire homes rights & responsibilities 2 service charges 3 payments 3 actual services charges 3 disagree with your charges? 3 first tier tribunal 4 what happens if you do not pay? 4 first 5 year period 4 major works 4 repairs 5 your responsibilities 5 gas servicing 5 buildings insurance 6 selling your home 6 want to sub-let your property? 6 buying the freehold of your block 6 our promise 7 what you can expect from us 7 the leasehold forum 7 advice and support 7
introduction This handbook has been designed to provide advice, information and guidance to North Lincolnshire Homes Leaseholders. It may also be a useful reference to have if you are a tenant thinking of buying your flat or if you are looking into purchasing an existing North Lincolnshire Homes Leasehold property. The information within this booklet will explain the most important aspects of owning a lease and also what your rights and responsibilities are. It will also detail the rights and responsibilities of
the lease Your lease is a legal document between you and North Lincolnshire Homes. It sets out the legal relationship between you as a leaseholder and North Lincolnshire Homes as a landlord. The main elements of a lease include: • The set period of time you have a right to occupy your home – initially up to 125 years. • The parameters of your home which fall under your ownership or responsibility during that set period, including any garden areas or outbuildings. • The rights and responsibilities you have as a Leaseholder. • The rights and responsibilities we have as a landlord and freeholder of the block.
North Lincolnshire Homes to our Leaseholders. This booklet will explain everything you need to know about service charges, what they cover and why they are charged. All leases are unique for each property, if you do not have a copy of your lease then please get in touch with us and we can provide you with a copy for £20. This handbook has been designed solely to provide general information and advice to our Leaseholders.
buying a lease – as an existing tenant If you are an existing North Lincolnshire Homes tenant you may be eligible to buy your flat through: • Right to Buy – you are normally eligible if you have an assured protected tenancy with North Lincolnshire Homes and have been a public sector tenant for a period of over 5 years • Right to Acquire – you are normally eligible if you have an assured tenancy with North Lincolnshire Homes and have been a public sector tenant for a period of over 5 years If you are eligible you will be entitled to a discount which will be variable depending on whether it is Right to Buy or Right to Acquire and how long you have lived there.
• Major works terms and repayments
Please remember, buying a lease for a flat is not the same as buying a house. When buying a flat, you are only buying the right to occupy your home for a set period.
A lease is effectively a long term tenancy, in which you own the right to occupy the property.
Please contact our Home Ownership Team for more information on 01724 279900.
• Service charge terms and repayments
You should always seek advice from a solicitor before you purchase a Leasehold property.
buying a leasehold property on the open market If you bought your flat or are thinking of buying a flat on the open market, the seller will transfer the rights and responsibilities to you under the lease for the rest of its term. This is called an assignment of the lease and is the legal transfer of the ownership of the property from one person to another. It is highly recommended that you fully understand the terms of the lease of the property you are looking to buy.
north lincolnshire homes rights & responsibilities North Lincolnshire Homes are the freeholder of the block which means we own the building. Under the terms of the lease, it is our responsibility to look after the main structure, exterior and any communal areas. Our responsibilities are to: • Keep the structure, exterior and communal areas of the block including drains and external pipes in good repair. • Insure the building structure.
leaseholder rights & responsibilities Under the terms of your lease you agree as your right and responsibility as a leaseholder to: • Pay your apportioned share of service charges, which includes communal services such as electricity, repairs, cleaning, buildings insurance, grounds maintenance. • Not to make structural alterations or additions to the property without first seeking written permission from North Lincolnshire Homes. • Inform us as the landlord of any transfer of ownership or mortgage, or if you decide to sub-let. • Keep the property in good repair. • Comply with all terms and regulations set out in the lease. • Not cause any nuisance, annoyance or disturbance to residents or cause damage to any part of the building. You have the right to information regarding your service charges and the money spent on the communal block within which your flat is situated. You also have the right to be consulted on expensive works and long term contracts that will affect your communal block.
• Manage the communal block in a proper and reasonable manner. • Provide information readily to leaseholders regarding their service charges including itemised statements of services. • Consult with leaseholders before carrying out any major works We also have the right to: • Enter the property to keep the building in good repair, carry out improvements or to inspect (having given prior notice, unless it is an emergency)
service charges
actual service charges
Service charges are invoiced annually and cover the yearly running costs of the communal block in which your property is situated.
After the estimated service charge financial year has finished, we collect the actual costs of what was actually spent during that period. If less has been spent than what was invoiced in your estimate, then we will credit the difference to your service charge account.
Every leaseholder has to pay their apportioned share of the services they are provided that are specified in your lease. You do not pay anything towards services provided solely for tenants who are renting other properties within the communal block. Depending on the type of property you own, your service charges will cover: • Lighting and cleaning of communal areas • Door entry systems • Caretaking • Day to day repairs
Likewise, if the year actually cost more than was estimated we will invoice you the difference. You will be notified in writing of your actual service charge with either a credit note* or invoice enclosed. Actual service charges are usually completed in September every year. *Please note: A credit note does not mean a refund of the amount stated. If you wish for your credit to be refunded directly to you, then please get in touch.
• Grounds maintenance • Maintenance of boundary walls or fences • Management costs • Buildings insurance • Caretaking The above are only a summary, if you would like to know exactly what your service charges cover, then please get in touch.
payment Service charge estimates are invoiced annually. Your lease may state certain payment terms, however as the freeholder we allow Leaseholders to pay in a variety of ways: • Direct Debit • Standing Order • Cash/Cheque at our Head Office or Cole Street Branch If you have any difficulty in paying your service charges, North Lincolnshire Homes will work closely with you to support and assist you in creating a re-payment plan.
disagree with your charges? If you feel a mistake has been made, that you are being charged unfairly or being charged for a service you are not receiving then please inform us of this first. Please provide details of what charges you do not agree with and why. Your query will then be investigated to ensure you are being charged correctly for the services you are receiving.
first tier tribunal
first 5 year period
If you still disagree with the charges made to your property, you have a right to apply to the First Tier Tribunal.
If you are buying your flat as a North Lincolnshire Homes tenant through Right to Buy or Right to Acquire, your service charge is fixed for the initial 5 year period from the date of the sale.
The First Tier Tribunal govern the practice and procedures relating to residential and leasehold property and allow leaseholder and landlords to apply to settle disputes over charges. They will ultimately decide: • If the charges are reasonable • If the work being charged for is of a good standard A tribunal can charge up to £500 to hear your case. They may or may not decide to charge you this cost, or they may decide to charge the costs against the landlord. If you are considering this route, then seek appropriate legal advice
what happens if you do not pay? Under the terms of your lease, you must pay all reasonable charges that are incurred to manage and maintain the block including any communal areas. We will always try our very best to help leaseholders who have financial difficulties so you must inform us if you are struggling to pay any charges due. Prompt payment of your service charges and your mortgage are essential to keeping your home. Ultimately if charges are not paid, North Lincolnshire Homes can apply to the tribunal for your lease to be forfeited and your home could be repossessed. North Lincolnshire Homes would have to prove at the tribunal that the charges were reasonable and that no attempt was made to pay them. The submission of a case to the tribunal is a last resort, and not a route that we as a landlord want to go down. So please, get in touch with us as soon as you realise you may struggle to make payments towards your service charges or major works bills.
This initial charge is calculated by estimating what the likely costs will be to provide the services to your block and any communal areas and also any potential major works that may be conducted. It is payable through the same means and methods as regular annual service charges. If by the end of the 5 year period the service charge has been overestimated, we will refund the difference between what it actually cost and how much you have paid. The fixed 5 year service charge period is only applicable to properties bought first time through Right to Buy or Right to Acquire.
major works From time to time it will be necessary for North Lincolnshire Homes to form new contracts and carry out major repairs. Under Section 20 of the Landlord and Tenant Act 1985, you have a legal right to be consulted about any major repairs costing over £250 each within the block or any long term agreement made that will cost more than £100 each a year. If we expect a contract or piece of work to exceed these amounts we will consult you by: • Sending a notice of intention to commence works – this will detail the work being proposed and the estimated cost of the work • Give you at least 30 days to provide feedback on the proposal of works • A further notice to inform you of who have been chosen to carry out the works Depending on the type of contract, you may have the right to nominate a contractor. Please contact us if you would like further information on this process.
repairs
your responsibilities
Our responsibilities
Your responsibilities
North Lincolnshire Homes are responsible for the repair and upkeep of the structure, exterior and communal areas of the block that your property forms part of.
Your main repair responsibilities concern the inside of your property, and normally include:
These normally include: • Exterior Walls
• Fitted units • Floorboards • Internal non-structural walls
• Roof
• Plaster or other surface materials on interior walls and ceilings
• Foundations
• Internal doors and frames
• Chimneys
• Toilets, baths and showers
• Rainwater and soil pipes • Sewers and drains
• Radiators, cisterns, tanks, boilers and pipes within the flat
• Gas, water and electricity pipes leading up to the flat
• Gas, water and electricity installations within the property
• External decoration
• Fixtures, fitting, and internal decorations
• Communal redecoration • Communal gardens, paths, walls and fences
• Responsibility for any leaks or burst pipes, including damage caused to other properties as a consequence
• Communal grounds and parking areas
• Property front door and frame
• Communal lighting/electricity • Communal windows and doors If you notice that a repair is necessary within your block, then please contact us directly on 01724 279900.
gas servicing It is your responsibility to maintain your boiler. North Lincolnshire Homes do offer Gas Service Packages through their nominated contractor, please call 01724 279900 for more details.
buildings insurance
want to sub-let your property?
North Lincolnshire Homes are responsible for arranging building insurance for leasehold properties.
If you wish to sub-let your property, you need to inform us and provide the following additional information:
This covers the cost of rebuilding or reinstating the building in the event of it being destroyed.
• Contact details of the tenant living in your property including their name and a contact telephone number
This service forms part of your annual service charge, please do not take your own buildings insurance alongside this.
• A copy of the tenancy agreement between you and your tenant
The buildings insurance does not cover the contents of your home, you are responsible for taking out your own contents insurance.
• Details of any managing agents acting on your behalf
From time to time we will look to find the very best deal for buildings insurance cover for our housing stock. You will be notified as soon as any changes are due to be made. You will also receive a copy of your summary of cover and instructions on how to make a claim if you should need to.
• Your correspondence address
Not all leases permit sub-letting of the property, so you will need to consult your lease or contact us to confirm whether you can go ahead with this. Please note: if you are permitted to sub-let your property, you are taking on important responsibilities as a landlord for the property. We would strongly recommend you seek legal advice before sub-letting your property to fully understand your legal obligations.
selling your home
buying the freehold of your block
Within the first 5 year period
Leaseholders have the right, as a group, to request to purchase the freehold of the building their property forms part of. This is called Collective Enfranchisement.
If you have bought your flat through Right to Buy or Right to Acquire and wish to sell within your first 5 years, you will be required under the terms of your lease to repay a certain percentage of your discount. Please contact us if you are looking to sell your property within this period and we will let you know how much you would be required to pay back. If you are outside of this 5 year period or you bought your property on the open market and are now looking to sell, your solicitors will get in touch with us to request the information needed to complete the sale. Please get in touch if you are looking to sell your leasehold property. We will then be able to compile the information required for the sale and ensure that it is a swift and efficient process.
Several conditions have to be met in order to be eligible including: • The block must contain 2 or more flats • At least 75% of the leaseholders must want to buy the freehold • The qualifying leaseholders must have held their lease for at least 2 years with a remaining term of more than 21 years Even if the above conditions are met, the law surrounding Collective Enfranchisement is very complex. If you were to successfully apply for Collective Enfranchisement you would be expected to take on a whole range of responsibilities and therefore, you should seek legal advice and guidance throughout the whole process.
our promise
the leasehold forum
North Lincolnshire Homes are committed to working in partnership with our leaseholders, because together we can achieve more.
To assist with our ongoing commitment to deliver excellent customer services and listen to our leaseholders, we host quarterly Leasehold Forum meetings throughout the year. These enable issues and decisions affecting our leasehold customers to be discussed and agreed. All leaseholders are welcome to these forums and the dates of each meeting are advertised in advance. All we ask is that you confirm your attendance beforehand and provide us with items for the agenda in good time before the forum. Please contact us if you wish to be sent minutes of previous meetings or would like to know the date of the next scheduled meeting.
We aim to deliver the very best level of service to all of our leaseholders at all times. In order to continue our commitment to our leaseholders, we always look for ways in which we can improve the services we deliver. We are always keen to hear from you with suggestions, compliments or feedback as this is the best way we can understand our service delivery and identify ways in which we can improve. You can contact us at: The Home Ownership Team North Lincolnshire Homes part of Ongo Meridian House Normanby Road Scunthorpe North Lincolnshire DN15 8QZ Tel: 01724 279900
what you can expect from us Our service standards are the minimum levels of service that you can expect to receive from us as a North Lincolnshire Homes Leaseholder. (Please note that the Leaseholder service standards are due to be reviewed in 2015).
advice and support If you wish to get further impartial advice you can contact The Leasehold Advisory Service (LEASE) who provide free advice on the legal matters affecting residential leasehold property. You can contact them via the following: Website: E-mail: Telephone: Fax: Post:
www.lease-advice.org info@lease-advice.org 020 7383 2500 020 7383 9849 The Leasehold Advisory Service Fleetbank House 2-6 Salisbury Square London EC4Y 8JX
We are always here to offer advice and guidance on anything relating to your lease agreement, service charge or any other leasehold related enquiry. If you are experiencing difficulty in paying your service charges our Financial Inclusion Team can also provide you with financial advice and assess whether you are eligible for any financial support. You can also contact other organisations that may be able to offer you the help and advice you require including: Citizens Advice Bureau 12 Oswald Road Scunthorpe DN15 7PT Tel: 01724 870941 Money Advice Service www.moneyadviceservice.org.uk Tel: 0300 500 5000