Agenda item

Objective: To provide the committee with the Leaseholder Ownership Policy for sign off and recommendation to cabinet for approval.

The Chair noted that whilst the Leasehold Representative was not present at the meeting, she had had the opportunity to review and influence this policy through the Leasehold Forum.

The Head of Housing Services presented the Leasehold Ownership Policy to the committee. He explained that the policy covers all aspects of being a leaseholder. The document derives from the lease the council has with leaseholders, as that is a legally binding document, and aligns with relevant legislation. It covers how recharge elements are carried out through annual service charges or S20 works, the council’s obligations as a landlord and leaseholder obligations. Following review by the Leaseholder Forum minor changes have been made to the policy. In addition to the lease and policy, there is also a summary document and a Leaseholder Handbook.

The committee’s discussion raised the following points:

-       The Commonhold and Leasehold Reform Bill is still currently at a draft stage, and the Ministry for Housing, Communities and Local Government (MHCLG) are consulting on a range of policies, including whether to ban leaseholds in new flats. As more details emerge these will be shared with the committee.

-       When individuals buy leasehold properties they are provided with a management information pack that outlines previous expenditure and estimated costs moving forwards. Unfortunately, there are situations where the first notification the council receives is after the lease has been signed which is a frustration for the council. In these situations any liability would lie with the solicitor who provided that advice to the buyer. When the buyer is purchasing directly from the council a S125 notice is issued, which sets out the buyer’s costs, expenditure and responsibilities over a 5-year period.

-       The council sell shared ownership properties directly as this is both cheaper than working through an estate agent with commission rates, and it provides the opportunity to vet potential shared owners and make sure they have a clear understanding from the outset about their responsibilities and expected costs.

-       Currently not clear whether the Commonhold and Leasehold Reform Bill will address the current loophole that does not require leaseholders to carry out gas and electrical safety inspections in line with those required for social housing. The council encourages all leaseholders to carry out these checks and provide a copy to the council, and a discounted rate for the checks is offered through the council’s contractor. In some circumstances, where leasehold properties are sublet, there is a requirement for checks to be carried out. The council is as proactive as possible in this area but are governed by the lease and current legislation.

-       It was highlighted that leaseholders are often left with ambiguous charges and agreements in the private sector, so it is extremely positive that the council are providing clear information about charges and responsibilities.

The Cabinet Housing Committee recommended unanimously that Cabinet approve the Leasehold Ownership Policy.