Shared ownership leaseholder handbook

Transcription

1 Shared ownership leaseholder handbook Tr a n s fo r m in g L i ves /StockportHomes Tr a n s fo r m in g L i

2 2 Welcome!

3 Shared ownership leaseholder handbook 1. Introduction This handbook details your rights and responsibilities as a leaseholder of Stockport Council or Stockport Homes and Stockport Homes responsibilities to you. For more information about the services provided by Stockport Homes, please visit If you require more guidance, please contact the Leasehold Officer or for legal advice an independent legal advisor such as a Solicitor, Law Centre or the Citizen Advice Bureau. 2. About Stockport Homes Stockport Homes is an Arm s Length Management Organisation (ALMO). This means that while Stockport Council established the company, it operates independently from it on day-to-day matters. For the purpose of this handbook, Stockport Homes will carry out the functions on behalf of the Council / Freeholder. 3. Your lease Your lease is a legally binding contract which sets out the rights and responsibilities of you, the leaseholder and Stockport Homes. The terms of the lease can only be changed by agreement between both parties or by an Act of Parliament. What you agree: To pay the rent and / or service charge or any other charges as outlined in your lease. To pay all bills such as Council Tax, water charges, gas and electricity. To keep your home in a good state of repair and decoration. Not to carry out alterations or improvements to your home without written permission from Stockport Homes. Not to sell or sublet your home without written permission from Stockport Homes. In certain instances subletting is not permitted. To allow the Stockport Homes staff to inspect the condition of your home. Not to do anything which may affect your building insurance policy. Provide a gas safety certificate where applicable. (For new build properties this will be provided as part of the purchase cost if applicable). To live peacefully and not to cause nuisance to others. What Stockport Homes / Council agrees: To allow you to occupy your home without interference unless you breach the terms and conditions of your lease. To insure the building (but not its contents). To maintain the structure of the building (in the case of blocks of apartments). To maintain communal gardens and facilities where these are provided. To maintain internal communal areas where these are provided. 3

4 3. Your lease (continued) Stockport Homes / Council will recover the cost of providing the above as part of your services charges. When you bought your home you will have been provided with a copy of your lease from your solicitor. The wording may be complicated and you should go through the lease with your solicitor to make sure you understand it. You can get a copy of your lease from your mortgage lender, Land Registry or Stockport Homes / Council. A charge is normally made for providing a copy. Your lease will contain the following information: The parties to the lease Stockport Homes / Council and you, the leaseholder The initial market value of the whole property, the amount you are paying (the premium) and the percentage you have bought. Confirmation of the initial gross rent per year, and the specified annual rent (the rent for the portion of the property you are renting). The date of the lease. The terms under which Stockport Homes / Council has agreed to let the property to you. The conditions of the lease. Covenants these are your duties under the terms of the lease, and Stockport Homes / Council obligations. What will happen if you do not pay your rent or your home is repossessed, or if the property is uninhabitable. Calculation of rent, the date for rental increases and the amount by which the rent can be increased. What happens if you want to buy additional shares in the property (staircasing). Rights passed to you by Stockport Homes / Landlord and rights granted to Stockport Homes / Council or others. Staying in your home until the lease ends You have possession of your property for a number of years. (Please see your lease for the exact length). Generally, you have the right to stay in your home until the end of your lease as long as you keep to the conditions set out in your lease and pay all the changes due. If you do not keep to the conditions of your lease, Stockport Homes / Council can take legal action, which can result in Stockport Homes / Council taking back the property. The lease also sets out the procedures should your mortgage lender seek repossession. You or future leaseholders will be able to extend the lease towards the end of the term. Subletting You are not allowed to rent your property out until you have obtained 100% ownership of the property. 4

5 4. Your rights As well as rights in your lease, there are other rights in law which apply to leaseholders. These are Acts of Parliament which have been agreed by the Government. The law is complex and if you want to find out more about these or any other legal rights you should ask your solicitor or the Citizens Advice Bureau. Consultation for major works and long-term agreements Stockport Homes will only complete works to areas that you share in common with others. This will mainly apply to leased apartment blocks but houses may also have common areas. We consult all residents, including leaseholders, at all stages of a major works project and entering into a longer terms agreement such as an insurance contract. The type of consultation will depend on the works / contract we are planning to do. For example, if we are planning a lot of work with major changes that affect you, we will organise more meetings and give more information to residents than if we are doing regular external decorations to your building. Where Stockport Homes / Council intends to recover more than 250 per leasehold flat for repairs or 100 for a service, you have a legal right to be consulted about the work before the work begins (Section 151 of the Commonhold and Leasehold Reform Act 2002). You will receive a notice of intention which you can respond to within 30 days and you can comment on the scope of the works and / or nominate a contractor in some circumstances. Following this if we still propose to continue with the work, a further notification is sent containing details of the work and the estimated costs. You will then have 30 days to give us your comments. We will try to include a suggested contractor as long as they meet all the conditions we set for contractors. Where long-term contracts were established before October 2003 or a public notice is required the Leaseholders will not be asked for names of contractors to add to a tender list. We will look carefully at your comments and will have regard to them. You cannot refuse permission for the works to go ahead as Stockport Homes / Council has a responsibility under the lease to repair and maintain the building (apartments only). Where a Residents Association is recognised for the purpose of service charges under the Freeholder and Tenant Act 1985, they have the right to be consulted about the specification for the works and in some circumstances to be asked for the names of any contractors they would like to be put on the tender list for the work. Where work is of an urgent nature and cannot be delayed, it will be carried out without consultation for example, leaking roof or water burst and Stockport Homes will approach the First-tier Tribunal (Property Chamber) to ask for dispensation to charge leaseholders for these costs without consultation. Evidence of the urgency will need to be provided. Service charges must be reasonable Stockport Homes / Council must make sure its service charges are reasonable. The services or works carried out must also be done to a reasonable standard. If you do not agree with the service charge invoice or want to challenge the cost of the service, you should contact your Leaseholder Officer. If you are still unhappy, you can make a formal complaint. If you unhappy with the result of your formal complaint, you may approach the Ombudsman or apply to the Upper Tribunal who will make the final decision. The tribunal has the power to decide whether or not they are reasonable. You do not have the right to 5

6 4. Your rights (continued) withhold payment of service charges because you believe service charges are unreasonable. You may also find the information in section 9 (Tell us about your experience) useful. With every demand for a service charge we will include a summary of tenants rights and obligations under the Commonhold and Leasehold Reform Act 2002 which will give you more information. A guide to your rights and responsibilities can also be found on the communities and Local Government web pages - housing/booklet The Leasehold Advisory Service (LEASE) provides free advice on the law effecting residential long leasehold property and common hold. You can call them on (Monday Friday, 9.00am 5.00pm). Summary of service charge costs You have the right to ask the Landlord to give you a summary of the service charge costs which you are paying. Inspecting invoices and receipts You can ask to see all the invoices, breakdown of costs or receipts that make up the service charges. Stockport Homes do not charge you for looking at these directly, but they form part of the management charges. Stockport Homes will make a reasonable charge if you want photocopies. Please contact your Leaseholder Officer in writing to arrange this for you. Carrying out an independent management audit Leaseholders have the right to carry out an independent management audit. This means that leaseholders appoint a qualified person to examine whether we are managing the leasehold homes properly. The costs of employing an auditor will be paid for by the Leaseholders employing him or her. Recognition of Residents Associations In order to become a recognised Residents Association for the purposes of service charges you would need to meet the following criteria as detailed in Section 29 of the Freeholder and Tenant Act 1985: there must be only one Residents Association for the development; and 60 per cent of eligible Leaseholders must be members of the Residents Association. under the Freeholder and Tenant Act 1985, where a Residents Association meets the conditions of the act, we would write to them to give recognition for the purpose of service charges. 6

7 5. Charges Rent and service charges Shared owners pay a rent for the portion of their property that is still owned by Stockport Homes and service charges which reflect the services provided under the terms of the lease. Changes to your rent You will be advised of any change in your rent at least four weeks before the increase is due. Any increase in your rent is linked to inflation (the Retail Price Index (RPI)) and the lease allows for rent increases at a rate slightly above inflation usually RPI per cent. Your rent will increase in April of each year. Changes to your service charges Your service charges will be issued annually and will include the costs to comply with our obligations under the lease. Part of the service charges will include a fee for managing the services and the Leasehold Officer can provide a breakdown of how your management fee is calculated on request. Ground rent The ground rent is a fixed annual payment, which is set out in your lease. Ground rent is not related to the provision of any services. Please see your lease if you need to pay ground rent. If a ground rent is applicable the invoices for this charge are sent annual at the same time as your rent and service charge. Paying your rent and service charges Your rent and service charges are due weekly on a Monday and can be made using the payment methods listed. You will be charged rent over 48 weeks. If you would like to pay your charges other than weekly, please discuss your payment options with the Leasehold Officer. You can pay your rent: By telephone: You can pay using a debit or credit card by calling This service is available 24 hours a day or by calling the Leasehold officer on during normal working hours. On the internet: You can pay your service charge online using a debit or credit card. Simply log onto and select pay your rent. At a Post Office, PayPoint or Payzone outlet: You can pay at any Post Office or any retail outlet displaying the PayPoint or Payzone logo using a swipe card or payment slip. Post Offices are open on Saturday mornings and many PayPoint outlets are open seven days a week and late at night. To request a free payment swipe card or payment slip please call Direct debit: You can pay your service charge by direct debit and will receive a discount for using this method of payment. You can download a direct debit mandate form from Stockport Homes website or call the Leasehold Officer to set up over the telephone. Stockport Homes offer a number of payment options and payment dates. To check that your payments are up-to-date, please contact the Leasehold Officer. You will be sent a statement summarising your charges and payment on a regular basis but one can be sent to you at any time on request. It is important that your payments are always made in advance. 7

8 5. Charges (continued) Difficulty in paying your charges Your lease states that you have to pay service charges and ground rent promptly on demand. If you are having a problem with payment for whatever reason, please contact your Leasehold Officer. We will be able to offer advice to help you claim any benefits you may be entitled to. Depending on your circumstances, Stockport Homes / Council may agree to you paying any arrears in instalments. Additional payment options are available for large major works invoice. If Stockport Homes / Council contacts you about major works you will be sent further guidance. These are also available on request. Financial assistance with service charges The welfare benefit system can provide help to owner occupiers in certain circumstances if they have become unemployed or are suffering financial hardship. If you are in receipt of means tested benefits including Income Support, Job Seekers Allowance or pension credits you should inform the benefits provider of the service charges you are required to pay. You are required to inform them of any changes to your service charge within four weeks of receipt of the demand. You can get more information on money saving tips from the Leasehold Officer or by visiting What happens if I do not pay? As your landlord Stockport Homes / Council must protect the financial stability and we must therefore take legal action against people who fall into arrears with their payments and refuse to clear their debt. If you do not pay your charges you will receive letters explaining that you are behind with your rent and The Leaseholder Officer will contact you by visiting or phoning you to discuss the arrears and make an agreement to clear them. If arrears continue to grow, some or all of the following actions will be taken depending on individual circumstances. For those receiving some benefits Stockport Homes may ask for direct payments from the money you receive. This will mean that your charges plus an amount of your arrears can be paid directly to Stockport Homes / Council. A Notice of Seeking Possession will be serviced. This is the first step in legal proceedings and allows you time to remedy any breaches (for the purpose of this section this would be non-payment of your rent and service charges). Small claims court - This means that we will apply to the local county court for a debt judgement. This action will result in court costs which are payable by yourselves. The court will decide how to enforce payment if the arrears remain outstanding. If a county court makes a judgement (CCJ) against you, this may affect your ability to obtain credit. If you are in employment Stockport Homes will request an attachment of earnings. If you already have an attachment of earnings already in place Stockport Homes will ask the courts to combine your debt. If you are not employed or you are self-employed we may take one of the following actions. Warrant of execution. This is where the court bailiffs are given authority to either collect the money owed or take goods to sell at auction. 8

9 Contact your mortgage lender and ask them to clear the balance and add the amounts plus cost to your mortgage. They will do this to prevent the lease being forfeit and losing their interest in the property. Charging order which will prevent you from selling your assets including your property without you paying what is owed. Third party debt order. This is where Stockport Homes / Council will ask the courts to stop you taking money out of your bank or building society account. The courts can also request that the third party debt order be sent to anyone who owes you money. Forfeiture - This means that Stockport Homes / Council will serve you with a Notice of Seeking Possession and ultimately ask the court to allow us to take back your property. Stockport Homes / Council will try to take the action that will cause you the least financial difficulties and will only consider the last three options if we are unable to collect the outstanding balance by other means. You can avoid all of these actions by contact the Leasehold officer and making an arrangement to clear the service charges. 6. Repairs, improvements and insurance Your lease explains the responsibilities of the landlord and leaseholder for repairs to your property. If you live in a house, you will be responsible for arranging and paying for your repairs. However, Stockport Homes can provide a comprehensive repairs service. If you would like a quote, please contact our Repairs Contact Centre on When a repair is covered by the building insurance, please contact the Leasehold Officer for more details. If you live in an apartment, you are responsible for repairs inside your home, and Stockport Homes are responsible for getting repairs done to the structure of the building and any communal areas. These repairs will be paid for out of the service charge. Gas safety To ensure the safety of all our residents the lease requires Leaseholders to keep gas equipment in a good condition and the Health and Safety Executive (HSE) recommends an annual service of all gas appliances by a qualified tradesman with Gas Safe Registration (formally Corgi). The Gas Safety (Installation and Use) Regulations 1998 states that you must not use a gas appliance or fittings you know or suspect to be unsafe (HSE Gas Safety Advice leaflet is available from your Leasehold Officer). Leaseholders may buy into Stockport Homes gas servicing contract. There is a charge payable in full for which Leaseholders are invoiced separately from their service charges. Please provide a copy of your annual gas safety certificate. You may a copy or send in the post to the Leaseholder Officer. Your lease may require that you provide a copy every year. 9

10 6. Repairs, improvements and insurance (continued) New properties If you have bought a newly-built property, for the first 12 months the builder will responsible for putting right any problems relating to faulty workmanship or materials (called defects). Any problems, which are not the result of faulty workmanship or materials, will be your responsibility. The defect period runs from the date the property is handed over by the builder to Stockport Homes / Council. If you need to report a defect, please call the Repairs Contact centre on Building guarantee All new properties are covered by a National House Builders 10 year guarantee. You should have been given a copy of the guarantee on completion. Improvements You have the right to carry out some improvements or alterations to your home, but you should always: get written permission from Stockport Homes / Council; ensure the proposed works conform to building regulations; and get any necessary planning permission. Stockport Homes / Council will not unreasonably refuse permission to carry out improvements, providing the work is carried out to an acceptable standard. Improvements will not result in any additional charges in rent and will be discounted for valuation purpose, should you apply to buy further shares in your property. 10 Buildings insurance Your landlord insures the building where you live as per the terms of the lease. For those living in an apartment, Stockport Homes / Council is responsible for the upkeep, repair and maintenance of the structure and communal areas and it would be very difficult to have more than one insurance company. Stockport Homes / Council insures all sold flats with the same insurer. The building insurance only covers the structure and common parts of the building but not the contents of your home. Stockport Homes recommends that you arrange insurance to cover your contents in your home. Stockport Homes can provide a comprehensive contents insurance cover at a competitive rate. If you would like more information, please contact the Leaseholder Officer. When you purchased your property or when the insurance supplier is reviewed you will receive a summary of cover which will give you details about your insurance cover. A statement of policy cover is available on request from the Leasehold Officer. In the event of loss or damage to your property or the communal areas you should contact the Leaseholder Officer for the current procedure. You should not make good any damage until you have spoken to the insurance provider. The building insurance policy is index linked which means that it is increased automatically each year in line with rebuilding costs. If you feel your property is under insured, Stockport Homes / Council can arrange for it to be increased when we receive your written request. To reduce the cover you would need to provide a surveyors report confirming the insurance valuation. You should review the sum insured at regular basis and take into account any improvements or alterations that might affect the rebuild value of the property. Your annual service charge includes an amount for insurance.

11 7. Buying further shares / selling my home or share What do I do if I wish to buy a further share? You may decide to buy a further share of the property - this is known as staircasing. The minimum share you may acquire is 25 per cent increasing in multiples of 10 per cent up to full ownership. For example, if you currently own a 50 per cent share, you may buy a further 50 per cent up to the full ownership of the property. If you wish to purchase a further share please complete the Further Options Form at the back of this handbook ticking option 1. Return the form to the Leasehold Officer together with your deposit of 200 towards the cost of the valuation as soon as possible, to avoid any delay with the process of your application. If you have been a shared owner for less than 12 months please check with Stockport Homes if you are able to proceed with the purchase of further shares. In some circumstances upon staircasing to 100 per cent ownership you may obtain the freehold interest. However it may be that a ground rent or service charge is still applicable. Please refer to your lease. What if I wish to sell my home? You are entitled to sell the part share of the property which you own. In certain circumstances you may have to offer back your home to Stockport Homes / Council or ask for a suitable person(s) to be nominated from the housing register before you are able to sell the property. It is important that you refer to your lease which will provide more details on the terms. There are a number of criteria that a prospective purchaser will have to meet before they can proceed with a purchase. Stockport Homes / Council will work with Plus Dane to nominate a suitable person and check eligibility. It is hoped that a purchaser can be nominated to save your resale costs but this cannot always be guaranteed and you may have to advertise your property on the open market. When a buyer has been found, Stockport Homes / Council will still need to approve the purchaser to ensure that the property is always sold to those in need. Please complete the Further Options Form, at the back of this handbook ticking option 2 and send it to your Leasehold Officer with a cheque payment of 200 towards the valuation. What if I wish to sell the whole property 100 per cent? You may wish to sell the whole of your property, even though you own only a part share. This can seem complicated; but basically what happens is that you sell your share and Stockport Homes sells its share to a buyer on the same day. When a buyer has been identified please complete the Further Options Form at the back of this handbook ticking option 3 and return to the Leasehold Officer together with a deposit of 200 towards the cost of the valuation. Valuations To agree the price at which further shares may be bought or the property is to be sold, Stockport Homes will seek a valuation from an Independent Valuer, you will be notified in writing who has instructed to carry out the survey. For stair casing the Valuer will determine the current open market value of the property excluding any improvements you may have carried out, as noted on your Further Options Form. The valuation is valid for three months. If the transaction does not complete during this time, a further valuation will be required. Another valuation will mean another fee, which you, as the buyer need to pay. 11

12 7. Buying further shares / selling my home or share (continued) What happens about my buildings insurance? On completion of a 100 per cent purchase or sale the insurance provisions made by Stockport Homes / Council for your house will no longer remain in force. You need to obtain your own building insurance through an independent insurance broker or mortgage lender. If you own an apartment, Stockport Homes / Council will continue to provide building insurance and this will be reflected in the cost of the service charges. 8. Anti-Social Behaviour (ASB), nuisance and harassment Stockport Homes / Council hopes you never experience ASB, nuisance or harassment and enjoy your home and environment peacefully. You will find more information on how to report ASB and what Stockport Homes / Council will do to help you or our customers to solve cases of ASB. There is a suite of ASB leaflets that provide you with advice and guidance on dealing with ASB that you can download from or by contacting the Anti-Social Behaviour Team. What if I have arrears? None of the options outlined will apply whilst there are any balances owing. In some circumstances, with Stockport Homes / Council s permission you may settle any outstanding debts either before or at the point of sale completion. 12

13 9. Getting involved in shaping the Leasehold services Customer focus events In order for Stockport Homes to improve the services offered to you, Stockport Homes needs to know what you think. There are many ways to help make this happen and more information is available on Stockport Homes website or on request. You can choose to be involved as little or as much as you like depending on your own interests and the time you have to spare. Leaseholders can join in any of Stockport Homes customer involvement events but there are also have specialised events for Leaseholders Service Improvement meetings and forum which cover issues that you have raised as important to you. Stockport Homes also hold an database which is used to make you aware of leasehold issues and welcome you to join the database. Stockport Homes will not pass your details to a third party and you can ask for your name to be removed at any time. You will receive a regular Leaseholder survey, the results of which Stockport Homes uses to improve the leasehold services. Tell us about your experience Stockport Homes are committed to providing high-quality services, which meet its customers needs. To do this, Stockport Homes needs to know your views. Stockport Homes needs to know when you are not happy with a service you have received. Stockport Homes also need to know when it has done something well or if you have a suggestion for something could be done better. For more information on how to contact us about a compliment or complaint and what you can expect from Stockport Homes should you wish to make a complaint, please visit or contact the Customer Feedback Officer (contact details are on page 14). Service Standards Service Standards are in place so that customers have a clear understanding of the level and quality of service they can expect to receive from Stockport Homes. Service Standards also ensure that everyone receives the same level of service, and they allow Stockport Homes to measure our performance, so that it can keep improving the services. More information on what you can expect from us can be found at under How we are performing. 13

14 Contact details Anti-social behaviour (ASB) (east area) (west area) To report ASB out of office hours, please call (reporting only). In an emergency contact Greater Manchester Police (GMP) on either 999 or Customer Feedback Officer Stockport Homes, 1 St. Peter s Square, Stockport SK1 1NZ feedback@stockporthomes.org Customer Involvement Team Stockport Homes, 2nd Floor, 1 St. Peter s Square, Stockport SK1 1NZ customer.involvement@stockporthomes.org Development Officer East Area Office (Bredbury, Brinnington, Compstall, Covent Garden, Hazel Grove, High Lane, Marple, Marple Bridge, Mottram Street, Offerton, Romiley, Spring Gardens, Victoria Park and Woodley) 1 Berwick Parade, Northumberland Road, Brinnington, Stockport SK5 8LQ east.area.housing@stockporthomes.org Leasehold Officer Assurance Team, Stockport Homes, 2nd Floor 1 St. Peter s Square, Stockport SK1 1NZ leasehold@stockporthomes.org Local Government Ombudsman PO Box 4771, Coventry CV4 0EH advice@lgo.org.uk Repairs Contact Centre housing.repairs@stockporthomes.org West Area Office (Adswood, Bramhall, Bridgehall, Cale Green, Cheadle, Cheadle Heath, Cheadle Hulme, Councillor Lane, Davenport, Didsbury Road, Edgeley, Gatley and Heald green, Larkhill and Shaw Heath, Reddish, The Heatons and Lancashire Hill) Bridgehall Community Centre, Siddington Avenue, Adswood, Stockport SK3 8NR west.area.housing@stockporthomes.org More contact details are available on: Leaflets (available on request from your Leasehold Officer) Gas Appliances Get them checked. Keep them safe Issued by HSE Gas Safety Executive; Looking for an electrician? Guidance on how to employ a Niceic Registered Contractor. Issued by NIC Group; How safe is the wiring in your home? Guidance leaflet issued by NIC Group; Staying Put For homeowners who are over 60 years and require assistance with repairs and adaptations; Paying for major works; 14 Staying Put For homeowners in tax bands A-D who are over 60 years or in receipt of income related benefits and require assistance with home security. Managing your Finances Aims to support Leaseholders to manage their finances and pay service charges. It also provides help and advice to enable Leaseholders to take steps to maximize income and deal with their debits. If you are not in debt, you may still find the information in this booklet useful. Credit Unions; and Stockport Homes contents insurance policy.

15 Shared ownership further options Name:... # # # Signed: Signed: Address: Postcode:... Telephone: Please indicate which option you wish to proceed with 1 I wish to purchase a further....% share of the above (please indicate % which you wish to purchase e.g. 50%, 25%) 2 I wish to sell the.% share that I / We own 3 I wish to sell the whole of the property 100% 4 Assignment (in case of death, divorce, marriage) Please list below any improvements that you have made to the property during the period of you lease (please attach separate sheet if necessary) Please provide details below of the solicitor acting on your behalf: Name:... Address: Postcode:... Telephone: I / We undertake to pay for all valuation fees that the chartered survey incurs. I / We enclose a deposit 200 towards the cost of the valuation report. Date: Date: / / / /... % Please return your completed form to: Leasehold Officer, Stockport Homes, 2nd Floor, 1 St. Peter s Square, Stockport SK1 1NZ 15

16 Accessing our services This handbook explains your rights and responsibilities as a shared ownership leaseholder. If you would like a copy in large print, Braille, on audio tape or CD, please contact the Social Inclusion Team on or inclusion@ stockporthomes.org Portuguese Farsi Chinese Urdu Arabic Polish Ref: /03/15 AB