Introduction to Leasehold
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- Alexandrina Austin
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1 Introduction to Leasehold In this session we will look at the different tenures, the leasehold concept, the law, the lease, leasehold and landlord obligations, concentrating on repairs
2 ABOUT ME, Leasehold Management since 1990 in a London Borough Council Trained over 4,000 staff in other organisations around the country Have done training for/with CiH, LEASE, RSLs ALMOS, Borough/City and County Councils.
3 Sat on Government working parties for RTB, Leaseholds London Government Association adviser on Leasehold issues Founder member of London Leasehold Officers forum and member of London ALMOs forum Registered CIH trainer Own business since September 2008
4 About today Introduction to the different tenure types of home ownership Background to leasehold, the law, leases and how they are written A brief look at the responsibility and obligations of leaseholders and the landlord around repairs Emergency access and action Opportunity to discuss difficult issues
5 THE TENURE TYPES
6 FREEHOLDS Transfer of land covenants Clear, concise covenant Understanding homeowner/landowner roles and responsibilities Home owners understanding Charges and challenges
7 LEASEHOLD FLATS Understanding the lease Roles and responsibilities of both leaseholder and landlord Service charges Leaseholder knowledge Expectations
8 SHARED OWNERSHIP Own unique problems Different lease type with different roles and responsibilities Exclusion of some rights to standard leaseholders Stair casing and sell- ons
9 UNDER LEASES AND HEAD LEASES Understanding the relationship between the two leases Who has what Who is responsible for what in relation to repairs, management, consultation etc. Enfranchisement and lease extensions Service charges
10 LEASEHOLDERS OR TENANTS?
11 QUESTION IS A LEASEHOLDER A TENANT?
12 Some definitions A Tenant A person who occupies property/land belonging to someone else. A Tenancy A contract that allows a person to occupy property or land belonging to someone else, usually in return for a payment (rent). The length of the tenancy is agreed in advance and can be ended by either party on terms and notice, or by the courts if the tenant breaks the terms of the tenancy.
13 A Leaseholder A person/company who occupies property/land belonging to someone else, in return for a lump sum payment and for a specified period of time. A Leasehold A legal contract between two parties for the use of property/land under certain terms and conditions with each party having obligations and rights. The leasehold can only be terminated due to breaking the terms /conditions and with agreement of the courts.
14 LEASEHOLD
15 THE LAW A number of Acts control various aspects of leasehold management Started many years ago but for many public sector landlords in 1981 Housing Act 1981 Landlord and Tenant Act 1985 Housing Act 1985 Landlord and Tenant Act 1987
16 CONT D Leasehold Reform, Housing & Urban Development Act 1993 Commonhold & Leasehold Reform Act 2002 A number of other Acts have contained provisions affecting leaseholders over the last 20 years
17 WHAT IS A LEASE? An agreement by which the owner of a building or land allows another person to use it for a specified period of time usually for a payment
18 CONFUSED? A lease is a legal contract, written by the legislature for the legislator, designed to enhance the fiscal wellbeing of the legal profession by interpreting the provisions therein and taking them to bar for confirmation of interpretation and further fiscal reward.
19 In short: A contract full of jargon, no one understands and costs a fortune to get someone to explain it for you SIMPLES
20 THE LEASE The lease is the road map, it shows the direction you must take if you are to reach your destination Your destination is Compliance If you do not know your leases you will struggle to do your job professionally, effectively, with knowledge and comply with the lease and the law
21 KNOW THE DIFFERENCES How many variations of leases does your organisation have? Do you know the differences? Do you understand the leases? Do your leaseholders understand their leases
22 BASIC LEASE FORMAT Most leases in both public and private sector are similar but some variances will be there Generally broken down into a number of sections, each with a title attached A typical lease would include
23 Particulars of the sale An explanation of expressions used in the lease and some meanings A description of the property sold A number schedules containing a number of covenants Landlords rights/responsibilities Leaseholders rights/responsibilities A plan of the property
24 THE DEMISED PROPERTY Clearly sets out what is purchased with the lease Will go into some detail Include any garden, shed, garage etc. Will refer to plaster, joists, services and windows and doors Will specifically exclude some parts
25 SCHEDULES Leases vary in the number of schedules they have Each schedule will address one principal area Set out both landlord and leaseholders responsibilities Set out both landlords and leaseholders rights Set out maintenance responsibility of each party Financial responsibilities of both parties Regulations for use of the property
26 REGULATIONS This is the part of the lease that is closest to the tenancy agreement Sets out the Do s and Dont s about using the property Is where most breaches of lease will come from Will contain some odd regulations
27 LEASEHOLDER RESPONSIBILITIES Pay rent and service charges Maintain the demised premises Not to alter the premises without consent Provisions for assignment or underlet Observe Regulations
28 LANDLORD RESPONSIBILITIES Insure the building Maintain the structure Comply with Financial Provision Other financial and legal provisions
29 Repairs Who is responsible for what?
30 Leaseholders repair obligations To keep the property maintained and in a good condition This includes: Internal plumbing Electrics Fixtures and fittings Floors (boards/screeds), walls (plaster/boards) and ceilings (plaster) Glass, doors (internal and flat entrance)
31 What is excluded: The structure Common parts Window and door frames (external only) Joists and rafters Shared Services Structures behind plaster Communal heating components
32 Landlords Repairing obligations The structure Common parts Shared services Utility services up to the point of entry All those bits excluded from leaseholders obligations
33 Water and Drainage Leaseholder responsible for water supply from stopcock/point of entry Landlord responsible for supply from mains to stopcock/point of entry Leaseholder responsible for waste up to communal/main sewer/shared waste services Landlord responsible for communal waste services
34 Right of Access Lease provides right of access for landlord to carry out works/inspect the flat. Reasonable notice to be given No Right to force entry in an emergency although may be necessary Access by written request reasonable period of notice
35 Emergencies Check all possible contact details Check with Neighbours for information Assess need for immediate access If YES contact Police advise of access need and request officer attendance Minimal entry damage, essential repair only, leave letter explaining action taken Secure property and leave advice on keys
36 No Entry Allowed Do not attempt emergency entry if the property is occupied Assess situation and reason for denied access Use other services to provide assistance, e.g. Social Services, Police, Environmental Services etc.
37 And What Else There are situations you have come across that we haven t covered at this session Share those with use now and we will almost certainly find an answer or solution OVER TO YOU
38 THANK YOU ANY QUESTIONS
39 Leasehold Training & Consultancy Services RICHARD TOWES CONSULTANT/TRAINER
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