Leaseholders

Leaseholders

What is a Leaseholder?

If you buy a house, you purchase the freehold and will own the property outright. If you buy a flat or maisonette, you usually purchase a long lease. This allows you and your successors to live in it for a fixed time, usually 125 years if you are buying it from the Council.
The Council will retain ownership of the building as a whole and its surrounding land; and is responsible for the upkeep of the building and all the internal and external communal areas.
Please note that if you are buying your flat or maisonette from another owener, you will purchase a lease for 125 years less the number of years that the previous owner, or any other previous owener, owned the property.

How many leaseholders are there with Shepway District Council?

We have more than 200 leaseholders in about 70 blocks of flats and maisonettes. You are likely to find at least one leaseholder in all of our blocks of flats and maisonettes that are not designed solely for people over retirement age.

Will the Council carry out repairs and maintenance under the terms of the lease?

The Council is reponsible for carrying out repairs and maintenance to the structure of the building and for shared internal communal and external areas. But you will be responsible for repairs inside your home, including windows, central heating, all fittings, plumbing etc.
You can request repairs to be done to the shared areas and tell us if you think any cleaning that is scheduled to be carried out regularly is not done.
We will give you a copy of the Tenant Handbook for general information only. The handbook contains useful information and telephone numbers such as the Repairs Line to report repairs in the shared areas.

Will I need permission to make alterations to my flat or maisonette?

You should check your lease carefullybefore carrying out any alterations to your property as there may be restrictions affecting the work you intend to carry out, and you might need our consent before you start work.
This is important as the Council can require you to make good any work that needs permission if this has not been sought first. You should also check whether you need Planning/Permission and/or Building Regulations before you carry out work to the property.

What does the Service Charge cover?

You pay shared services in your block for the following (where applicable)

• day-to-day build repairs and maintenance
• grounds maintenance (gradd cutting, hedge/shrub pruning, flower beds and borders)
• weekly communal fire check
• fortnightly lighting/emergency lighting/time clock/door entry system checks
• ekectricity in communal areas
• building insurance
• cleaning of communal areas/one off cleans
• caretaker services
• maintenance of fire extinguishers
• maintenance of communal TV aerials

How is my Service Charge worked out?

You pay an annual service charge, including a management fee and ground rent in April each year. You pay a percentage towards the cost of the servcies, which is determined by:

• the number of flats and maisonettes in the block, and
• the size of the building and land that is included

Your lease specifies the percentage you will need to pay and the size of the building and the land that is included

How will I be invoiced for the Service Charge?

The Council will invoice you twice during the year for the service charge:

• in April when you eill be charged for the basic amount we estimate you need to pay for services during the year, and
• in September when we charge you for the difference between the actual cost for the servivces you received and the estimate we calculated in April.

The actual charge will be based on the cost of services you receievd in the previous year up to the 31st March. If the difference is less than your estimated service charge you will be given a refund.

What is a Management Fee?

A management fee is charged to cover the cost of the preparing and sending certificates of work, and for dealing with queries and processing. This fee is reviewed annually.

What is a Ground Rent?

A ground rent is the 'nominal rent' the Council asks you to make. It is usually £10 per year.

Would I be expected to pay any additional costs?

We may need to charge you a 'major works' service charge in addition to your annual service charge if we carry out major repair works to your building.
Under the Right to Buy rules, we will already have told you about any known structural defects affecting the building and whether we intend to ask you to pay for work to put them right during the first 5 years of your lease. We will have given you an estimate of the costs of the work which will only change to take accoount of inflation. You will have to pay for your element of the cost of works done after the first 5 years to your building. These costs can be substantial depending on the repair.

Will you give me advance notice about major work being carried out?

Under the terms of your lease, your property may be included in the annual programme of major works for essential repairs and other works (published each year in the tenant magazine Coast and Countrysider).
We inform you about any major works that are planned and, by law, must give you two notices before work is started.
The first statuatory notice tells you about the work that is proposed and allows you 30 days to nominate a contractor of your own choice to be invited to carrry out the work. Any contractor you nominate is subject to approval and stringent checks, for example, for insurance cover and health and safety. If found suitable, they will be included on the tender list.
Subject to any observations received, we will then invite approved contractors to give us prices for the work. Following this (called tender process) we send you a second statutory notice telling you what woek will be carried out and much this will cost. This notice gives you 30 days to query the works and look at all tender documents should you wish to see them.
The Shepway Tenants' and Leaseholders' Group are advised when notices about major works are served.

Methods of payments for Service Charges

Your April bill
You can pay this amount either in one lump sum or by monthly payments by:

• Direct Debit through your bank
• cheque or cash at your local post office
• cheque or cash at the cashiers at the Civic Centre or One Stop Services in Hythe, New Romney and Lydd

If you choose to make monthly payments, we will tell you how much you must pay each month.

Your September bill
The invoice we send you in September will include the cost of any major or unexpected repair or improvement we carried out to your home in the previous year up to 31st March. Sometimes we may show a refund on this bill if there have been fewer day-to-day repairs than expected.
You can pay this amount either in one lump sum or by monthly payments by:

• Direct Debit through your bank
• cheque or cash at your local post office
• cheque or cash at the cashiers at the Civic Centre or One Stop Services in Hythe, New Romney and Lydd

If the Council owes you money, you can opt to have the amount refunded in full or deducted from your next bill.

Certificate of Work

We will give you a certificate in September of each year detailing all the work we have done in the previous year which ended 31st March.

Difficulty if paying

The Council may be able to help if you experience difficulties in paying large unexpected bills for major repairs or improvements. You can contact our Finance Services unit who may help you find easier ways to pay.

Loans

The Council may be able to give you a loan to cover the cost of major repairs that need to be carried out. You can get details from our Finance Services unit.

Do I have any representation if I am a leaseholder?

All Council tenants and leaseholders automatically become members of the Shepway Tenants' and Leaseholders' Group, which is the official tenants and leaseholders forum elected to with the Council on housing management issues.
You can take comments, complaints or suggestions to the Group or you can contact your local ward Councillor who can take up issues on your behalf if you feel you have been treated unfairly.

Selling your leaseholder property

The Council does not normally buy back leaseholder properties. You can sell your leased property in the same way as if you owned the freehold of the property and we will agree to the sale, subject to the terms of your lease. However, if you assign your lease you are obligated to tell us.

Your rights

You have the tight to a loan to help you pay a service charge for repairs during the first 10 years of your lease.
You are protected by law from service charges that can be shown to be unreasonable. Your citizen advice bureau or solicitor can give you advice.
If you disagree about buying your home you can contact the Local Government Office, the Office of the Deputy Prime Minister (OPDM) at:

Bridge House
1 Walnut Tree Close
Guildford
Surry GU1 4GA

Tel: 01483 882255