Leaseholder Handbook
Talk to us about The lease.................................................................4 Buying a lease as an existing tenant......................5 Buying a leasehold property on the open market...5 Rights & responsibilities.........................................7-8 Service charges.......................................................9 Payments.................................................................11 First tier tribunal.....................................................12 First 5 years.............................................................14 Major works.............................................................15 Repairs.....................................................................17 Gas servicing...........................................................17 Buildings insurance.................................................18 Selling your home....................................................18 Sub-letting your home.............................................19 Buying the freehold of your block...........................19 Advice & support.....................................................21
Hello This handbook has been designed to provide advice, information & guidance to Ongo Homes Leaseholders. It may also be a useful if you are a tenant thinking of buying your flat or if you are looking to buy an existing Ongo Homes Leasehold property. This information will explain the most important aspects of owning a lease & also what your rights and responsibilities are. It also sets out Ongo Homes rights & responsibilities 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 we can give you a copy for ÂŁ20. This handbook has been designed solely to provide general information and advice.
The Lease Your lease is a legal document between you and Ongo Homes. It sets out the legal relationship between you as a Leaseholder and Ongo 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.
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The parameters of your home which fall under your ownership or responsibility during that set period, including any garden areas or outbuildings.
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The rights and responsibilities you have as a Leaseholder.
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The rights and responsibilities we have as a landlord and freeholder of the block.
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Service charge terms and repayments.
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Major works terms and repayments.
A lease is effectively a long term tenancy, in which you own the right to occupy the property.
Buying a lease as an existing tenant If you are an existing Ongo Homes tenant you may be eligible to buy your flat through: • Right to Buy - If you are a permanent Ongo Homes tenant with a secure tenancy, you may have the Preserved Right to Buy. Those eligible for this scheme are usually tenants who held a tenancy with North Lincolnshire Council and then transferred to Ongo Homes (was North Lincolnshire Homes) in February 2007. Further eligibility checks required. • Right to Acquire - if you are a permanent Ongo Homes tenant with an assured tenancy, you may be eligible for the Right to Acquire scheme. You need to have been a tenant with us for at least three years. Those eligible for this scheme are usually a tenant who started tenancy with Ongo Homes (was North Lincolnshire Homes) following the transfer of the housing stock from North Lincolnshire Council in February 2007. Further eligibility checks required. If you are eligible you will be entitled to a discount which will be variable depending on whether it is a Right to Buy or Right to Acquire and how long you have lived there. 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. Also certain properties and areas are excluded from the Right to Buy and Right to Acquire schemes. Please contact the Home Ownership Team for more information on 01724 279900.
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.
Leaseholder rights & responsibilities Under the terms of your lease your rights and responsibilities as a leaseholder are to: •
Pay your apportioned share of service charges, which includes communal services such as electricity, repairs, cleaning, buildings insurance and grounds maintenance. • Not to make structural alterations or additions to the property without first seeking written permission from Ongo Homes. • Tell 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.
Ongo Homes rights & responsibilities Ongo 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. Manage the communal block in a proper and reasonable manner. Provide information readily to leaseholders regarding their service charges including itemised statements of service 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 in an emergency.)
Service charges Service charges are invoiced annually and cover the yearly running costs of the communal block in which your property is situated. Every leaseholder has to pay their apportioned share of the services they are provided with that are specified in your lease. You do not pay anything towards services provided solely for tenants who are renting their 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 • 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
Actual service charges
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:
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.
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Direct Debit Standing Order Cash/Cheque at our Head Office or Cole Street Branch.
If you have any difficulty in paying your service charges, Ongo Homes will work closely with you to support and assist you in creating a re-payment plan.
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 doesn’t always mean a credit on the account so cannot always be refunded.
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 make sure you are being charged correctly for the services you are receiving.
First tier tribunal If you still disagree with the charges made to your property, you have the right to apply to the First Tier Tribunal. The First Tier Tribunal govern the practice and procedures relating to residential and leasehold property and allow leaseholders 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 the 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 decide not to 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 tell 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, Ongo Homes can apply to the tribunal for your lease to be forfeited and your home could be repossessed. Ongo Homes would have to prove to 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 bill.
First 5 year period If you are buying your flat as an Ongo Homes tenant through the Right to Buy or Right to Acquire schemes, your service charge is fixed for the first five years from the date of the sale. 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 five 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 five year service charge is only applicable to properties bought first time through Right to Buy or Right to Acquire schemes.
Major works From time to time it will be necessary for Ongo 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 ÂŁ250 to each property within the block or any long term agreement lasting more than 12 months that will cost more than ÂŁ100 each year. If we expect a contract or piece of work to exceed these amounts we will consult you by serving the appropriate notices required by law that allow you to provide feedback, and depending on the type of contract, nominate contractors to carry out the works. We are legally required to respond to feedback received from leaseholders and provide full details of the contract and estimated costs throughout the consultation process. Please contact us if you would like to know more about this process.
Repairs Our responsibilities
We are responsible for the repair and upkeep of the structure, exterior and communal areas of the block that your property forms part of.
Your responsibilities Your main repair responsibilities concern the inside of your property.
These normally include: • Fitted units • Floorboards These normally include: • Internal non-structural walls • Exterior Walls • Plaster or other surface materials on • The roof interior walls and ceilings • Foundations • Internal doors and frames • Chimneys • Toilets, baths and showers • Rainwater and soil pipes • Radiators, cisterns, tanks, boilers and • Sewers and drains pipes within the flat • Gas, water and electricity pipes leading up • Gas, water and electricity installations to the flat within the property • External decoration • Fixtures, fittings, and internal decorations • Communal redecoration • Responsibility for any leaks or burst pipes, • Communal gardens, paths, walls and including damage caused to other fences properties as a consequence • Communal grounds and parking areas • Property front door and frame. • Communal lighting/electricity. If you notice that a repair is necessary within your block, please contact us on 01724 279900.
Gas servicing It is your responsibility to maintain your boiler. Ongo Homes offer Gas Service packages through their nominated contractor. Call 01724 279900 for more details.
Buildings insurance
Selling your home
We are responsible for arranging building insurance for leasehold properties.
Within the first 5 year period If you have purchased 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.
This covers the cost of rebuilding or reinstating the building in the event of it being destroyed. This service forms part of your annual service charge, please do not take your own buildings insurance alongside this. The buildings insurance does not cover the contents of your home, you are responsible for taking out your own contents insurance. From time to time we will look to find the very best deal for buildings insurance cover for our properties. You will be notified as soon as any changes are due to be made.
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 need to get in touch with us. Please get in touch with us if you are looking to sell your leasehold property. We will then be able to compile the information required and ensure it is a swift and efficient process.
Want to sub-let?
Buying the freehold of your block
If you wish to sub-let your property, you need to inform us and provide the following additional information: • Contact details of the tenant living in your property including their name and a contact telephone number • A copy of the tenancy agreement between you and your tenant • Your correspondence address • Details of any managing agents acting on your behalf.
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.
Please note: If you are intending 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.
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
What you can expect from us
We are committed to working in partnership with Our service standards are the minimum levels of our leaseholders, because together we can achieve service that you can expect to receive from us as more. an Ongo Homes Leaseholder. 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:
Home Ownership Team Ongo Homes Meridian House Normanby Road Scunthorpe North Lincolnshire DN15 8QZ Tel: 01724 279900
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: www.lease-advice.org E-mail: info@lease-advice.org Telephone: 020 7832 2500 Post: 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.
Call us on: 01724 279900.
Registered address
Meridian House, Normanby Road, Scunthorpe, North Lincolnshire, DN15 8QZ
Customer Centre
15-19 Cole Street, Scunthorpe, North Lincolnshire, DN15 6QY
Telephone: 01724 279900
www.ongo.co.uk/homeownership