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Foreword
Leasehold management is a complicated area, with everything governed by the terms of the leases, by the law or by regulation.
We hope this handbook helps towards understanding the rights and responsibilities of both homeowner and the council as leasehold manager.
The handbook is not meant to describe or give a full interpretation of your lease or the law. Only the courts can do that.
If you're in any doubt about your rights or duties, then you should seek specific advice.
1. What is a leaseholder and a freeholder?
1.1 As a leaseholder, you have bought the right to live in your property for a fixed number of years – initially, up to 125. The lease is a binding contract, enforceable in law, that contains both your rights as leaseholder and the council’s rights as freeholder.
1.12 The freeholder owns the building in which you live and is responsible for looking after the structure, exterior and common areas of the block.
1.13 As a leaseholder, you have to pay your flat’s share of the council’s costs of maintaining the block and providing services.
1.14 The service charge is your share of the council’s costs in running the building.
2. The service charge
2.1 Your service charge is the money you pay towards the day-to-day running costs of your block of flats.
2.12 The lease sets out the share of the cost you have to pay and the services it relates to.
2.13 You do not pay anything towards the cost of services and repairs that are provided solely for the benefit of the council tenants in the building. You only pay for those services that are provided for in your lease, which, in the main, benefit all residents.
2.14 Depending on your building, the service charge could cover:
- caretaking
- heating, lighting and cleaning of shared areas and stairways
- centrally supplied heating and water systems
- communal TV aerial maintenance
- fire safety equipment
- laundry facilities
- door entry systems
- day-to-day repairs
- lift maintenance
- maintenance of shared gardens
- maintenance of boundary walls and fences
- management costs
- buildings insurance
2.15 See your itemised service charge summary for a list of the services your building receives.
2.2 How the service charge is worked out
2.21 The service charge is worked out so that you pay your share of the cost of providing services to your block in the manner set out in your lease.
2.22 If your flat is in the Brighton area, your share is worked out by using the old Rateable Values. Your share is your flat’s Rateable Value divided by the total Rateable Value of all the flats in the block. If your flat is in the Hove area, you pay the percentage share shown in your lease.
2.3 When you pay a service charge
2.31 Each year, the council estimates the cost of the services that will be provided in each block of flats for the next financial year (1 April to 31 March) and charges a share of this cost to leaseholders through the monthly service charge.
2.32 Every March, you will be sent an itemised summary showing the monthly amount you will have to pay for each service. This is payable on the first of each month.
2.33 In September, you will be sent a Certificate of Expenditure showing the actual costs of services provided to your block of flats in the previous financial year.
2.34 If these costs are lower than the estimates and you have paid too much money, we will credit your service charge account with the difference. If your account is clear or in credit, you will normally be sent a refund.
2.35 If the costs are higher than the estimates and you have not paid enough money, an invoice will be sent to you to cover the extra amount.
2.36 Your Certificate of Expenditure will also show the cost of any major works or improvements carried out on your block, which you will have to pay as well as your service charge.
2.37 Major repairs or improvements might include:
- roof repairs or replacement
- lift repairs
- window replacement
- internal or external redecoration
- maintenance of common areas within the building
- overhaul of common services
2.38 If your flat was bought from the council through the Right to Buy scheme, you will have received a Section 125 Notice informing you of the purchase price. This document lets you know about possible major works that might be carried out within the first 5 years of your lease, along with how much this might cost. This document protects you against unforeseen major work charges. For those 5 years, the council is not able to charge you more than the amount shown in the document, except for an allowance for inflation.
2.4 Paying the service charge
2.41 You will be sent an interim service charge invoice that can be paid in 12 monthly instalments. You can arrange to pay by Direct Debit, Standing Order, at any Post Office, bank, or PayPoint outlet. The Central Collection Team accept credit or debit card payments over the phone. You can also pay online on the council’s website.
2.42 If you have any problems paying your service charge or major works bill, get in touch with us straight away. If you contact us quickly, we will try our best to help you plan the payments. In the case of major works, you may be entitled to a loan.
2.43 If you're over pension age, you may be entitled to help with your housing costs from the Pension Service. If you're of working age, you may be entitled to help with your service charge, depending on your circumstances. JobCentre Plus can help with enquiries.
2.44 As a leaseholder, it's your responsibility to pay the service charge. This includes contributions towards the cost of any major works carried out on the building.
2.45 See other agencies that may be able to assist you.
2.46 If you do not make payments, it could lead to legal action, which may result in a County Court Judgement or even put your home at risk.
2.5 Ground Rent
Your Ground Rent will normally be £10 per year and is set out in your lease. This is a rental paid to the council. The full amount is due on 1 April each year and is billed on a separate invoice.
2.6 Insurance
2.61 When you buy your flat, building insurance cover is automatically provided by the council. The cost of the insurance is included in your monthly service charge.
2.62 Building Insurance covers against loss or damage to the building or your fixtures and fittings. You must arrange your own contents insurance to cover your belongings.
2.63 See 10.4 on Making an Insurance Claim.
3. How we organise our leasehold management
3.1 The council’s leasehold management is not solely dealt with by one team but throughout Housing. For example:
- Tenancy Services manage the buildings, the tenancies and the leases
- Property & Investment look after the fabric of the building and consult lessees on proposed works
- The Leasehold Team calculate service charges, ensures legal compliance and runs a dispute procedure
3.2 The Leasehold Team
3.21 The Leasehold Team is your first point of contact. They will either be able to deal with your questions themselves or find the right person to help you.
3.22 They work out your service charges and keep records, including contact addresses, sub-lets and transfers. They deal with buying the freehold or the roof space and offer advice and information. They are your first stop to help with a complaint or enquiry.
3.3 Housing Customer Services
3.31 Day-to-day management of our properties is carried out by Housing Officers.
3.32 Housing Officers keep an eye on the standard of cleaning, the caretaking service, rubbish clearance, appearance, and grounds maintenance. They help with complaints about anti-social behaviour and give permission for alterations, keeping pets, breaches of the lease, and other issues that may arise.
3.33 The Resident Involvement Team work with resident associations and other groups, including leaseholders, to encourage the council and residents to work together.
3.34 Contact Housing Customer Services.
3.4 Repairs & Maintenance
3.41 Routine repairs and major works are carried out by the council. Any repairs which are the council’s responsibility should be reported to the Repairs Helpdesk.
3.42 Property & Investment manages repairs contracts and oversees quality and value for money. It's their job to consult with leaseholders if work is needed.
3.5 Insurance
3.51 The Insurance Team procure and manages the Buildings Insurance policy. As a leaseholder, you're covered by this policy and pay for it through your service charge. Many repairs due to escape of water or malicious damage are claimed under this cover and not passed on to leaseholders.
3.6 Payments
The Central Collection Team carries out billing and collection of the service charge. They will make payment arrangements with you, tell you how much you owe, and let you know if you're behind with your payments. They also set up Direct Debits and loans.
3.7 Management charge
3.71 The lease allows the council to include administration and management costs in your service charge.
4. Repairs and maintenance
4.1 In section 2, about the service charge, we described what share of the cost you must pay for repairs and maintenance carried out by the council. This section gives a brief guide to what the council is responsible for repairing and what you're responsible for repairing. The full details are set out in your lease.
4.2 The council’s responsibilities
The council is responsible for the repair and maintenance of the structure, exterior and shared parts of your block of flats. These could include:
- exterior walls
- roof
- foundations
- timbers and joists
- beams
- chimney stacks
- rainwater and soil pipes
- sewers and drains
- gas, water and electricity pipes up to the flat
- district heating
- communal hot water systems
- lifts
- external decoration
- internal common way decorations
- public way windows and doors
- communal gardens, paths, walls and fences
- communal grounds and parking areas
Window repairs
4.31 Brighton flats – the council is responsible for repairing the windows, but not the glass. The council will replace faulty double-glazed units, while the leaseholder is responsible for the glass in terms of window cleaning, and single pane breakages. The leaseholder has to pay their share of the cost.
4.32 Hove flats (lease type 1) – the leaseholder is responsible for repairing the windows.
4.33 Hove flats (lease type 2) – the council is responsible for repairing the windows, while the leaseholder must pay their share of the cost.
4.34 Hove flats (lease type 3/4) – the council is responsible for repairing the windows, but the leaseholder must pay the whole cost.
4.4 External door repairs
4.41 Brighton flats – the leaseholder is responsible for repairing the external doors and frames of the flat.
4.42 Hove flats (lease type 1) – the leaseholder is responsible for repairing the doors and frames.
4.43 Hove flats (lease type 2) – the council is responsible for repairing the doors and frames, while the leaseholder must pay their share of the cost.
4.44 Hove flats (lease type 3/4) – the council is responsible for repairing the doors and frames, but the leaseholder must pay the full cost.
4.5 Payment for the repairs carried out by the council
4.51 At the start of the financial year, we do not know what repairs will be needed that year in your block. For this reason, we include an estimate in your monthly service charge to help with the cost of possible repairs. If no repairs are carried out, this money is credited or refunded on the end of year account.
4.6 Your responsibilities
4.61 Your repair responsibilities mainly concern the inside of your flat and includes:
- fittings such as kitchen units and sinks
- floorboards
- internal non-structural walls
- plaster or other surface material on interior walls and ceilings
- internal doors and door frames
- toilets, baths and showers
- radiators, cisterns, tanks, boilers and pipes within the flat
- gas, water and electricity installations in the flat
- fixtures and fittings, and internal decorations
- responsibility for any leaks or burst pipes, including damage caused to other property as a consequence
4.7 To report a repair
4.71 Contact the Repairs Helpdesk.
If you have an emergency outside of our hours, use the same numbers, and our emergency service will pick it up.
Gather as much information as you can before reporting a repair. This helps us identify the issue and try to resolve it during the first visit.
4.72 All responsive repairs are given a priority rating depending on how urgent they are, as detailed below:
- emergency - which we’ll start within 24 hours
- routine - which we’ll start within 20 working days
- complex - which will take longer than 20 days to complete
Repairs Helpdesk staff will usually be able to tell you the priority of the job when you speak to them.
4.8 Getting the council’s permission to do repairs
4.81 You can redecorate the inside of your flat and replace fittings within your property, but you must not carry out any structural works or alterations, for example, building an extension, removing walls or fitting new windows, without first getting the council’s formal written consent.
You will have difficulties selling your flat if you cannot show this written consent. Alterations that are carried out without the council’s consent could result in action being taken, which could put your home at risk.
4.82 To get the council’s permission, you will need to make an application to the Leasehold Team, giving as many details as possible about the work you want to carry out. In most cases, the council is unlikely to refuse permission unless the work is likely to affect the safety of the building or cause a nuisance to neighbours.
4.83 You will also need to check if you require Planning Permission or Building Regulation approval before you begin. Initial advice may be obtained from the council’s Planning Support Officers.
5. Consultation
5.1 The council must consult with you before it begins any major repairs, maintenance or improvements for which you have to pay a share and which will cost any leaseholder in the building more than £250. You must also be consulted on certain long-term agreements, or contracts lasting more than 12 months, which the council intends to enter into, and will cost you more than £100 a year.
5.2 How you will be consulted
5.22 You will be consulted as an individual leaseholder, and if you're a member of a recognised tenants’ association (for service charge payers only), there will also be consultation through your association.
5.23 There are different ways to consult for different kinds of work.
5.3 Consultation on major works needing estimates
5.31 If the council needs to choose a contractor by asking different firms to return estimates of their costs, leaseholders must first be sent a ‘notice of intention’.
5.32 The notice will describe the proposed works or say where a description of them may be looked at. It will set down the reasons why the works are needed and allow 30 days for written comments. If you wish, you can name a contractor who you think should be asked to provide an estimate.
5.33 The council must have regard to any comments and must try to get an estimate from one or, in some cases, 2 contractors suggested by leaseholders.
5.34 A second written notice, called a Section 20 Notice, will then be sent to you, setting out the estimated cost from at least 2 of the estimates. This letter will include a summary of comments received and the council’s responses to them. All the estimates will be available for inspection. You will be invited to send in written observations on the estimates within 30 days.
5.35 The council must have regard to these written comments.
5.36 We will then award the contract. Within 21 days, we will write to you again to let you know who will be doing the work and why they have been selected. We will also let you know about any comments we have received and what our reply to them is. However, we do not have to write to you again if a leaseholder has suggested the chosen contractor or has sent in the lowest estimate.
5.4 Consultation on long-term agreements
5.41 If the council wishes to enter into a long-term agreement with a contractor to provide works or services, and the cost to any one leaseholder is more than £100 during the year, you must be consulted.
5.42 Examples of long-term agreements, or contracts lasting for more than 12 months, might include:
- repairs & maintenance
- lift maintenance & replacement
- central boilers
- door entry systems
- fire safety equipment
- grounds maintenance
- public way electricity
5.43 All leaseholders and any recognised service charge payers’ associations will be sent a ‘notice of intention’.
5.44 The notice will describe the works or services to be provided or say where a description of them may be looked at. It will set down the reasons why it's felt the agreement is needed and will allow 30 days for written comments. If you wish, you will be able to name anyone you think we should ask to provide an estimate.
5.45 The council must have regard to any comments and must try to get an estimate from one or, in some cases, 2 contractors suggested by leaseholders.
5.46 Once the council has drawn up its proposals to place the contract, a notice of the proposals will be sent to each leaseholder asking for your written comments within 30 days.
5.47 The council must have regard to these written comments.
5.48 We will then award the contract. Within 21 days, we will write to you again to let you know who will be doing the work and why they have been selected. We will also let you know about any comments we have received and what our reply to them is. However, we do not have to write to you again if the chosen contractor has been suggested by a leaseholder, or has sent in the lowest estimate. If there is a lot of information to send out, we may let you know where you can look at this information instead.
5.5 Consultation on works under long-term agreements
5.51 If the council needs to carry out works under a long-term agreement it has entered into with a contractor, you must be consulted in a different way to that where estimates must be considered.
5.52 A long-term agreement is a contract lasting for more than 12 months where a contractor has signed up to carry out, for instance, all the council’s repairs and maintenance work or the servicing and maintenance of all our passenger lifts or door entry systems.
5.53 If the cost of the work is to be more than £250 to any one leaseholder in your building, all leaseholders must first be sent a ‘notice of intention’.
5.54 The notice will describe the works or let you know where a description of them may be looked at. It will set down the reasons why the works are needed and estimate the total cost. It will allow 30 days for written comments.
5.55 The council must have regard to any written comments received, and a reply will be sent to anyone who writes in.
5.6 Nominated contractors
Local authorities are subject to a number of rules when selecting contractors. When letting works contracts, contractors must be on an approved list of contractors or qualify for placing on such a list.
5.61 European Union procurement rules
Some large contracts require public notice to be given in the Official Journal of the European Union. While we will ask for and consider the opinions and views of leaseholders, you will not have the right to nominate a contractor for these contracts.
5.62 Urgent works
The First-tier tribunal can allow works to go ahead without consultation ‘if satisfied that it's reasonable to dispense with the requirements’. This may apply in cases of very urgent works on grounds of health and safety or for which it's difficult to obtain more than one estimate.
5.7 Other forms of consultation
5.71 Other housing issues affecting your building, estate or area are discussed at regular meetings of the council’s Area Panels and service improvement groups. These include representatives from resident associations and ward councillors.
5.72 All leaseholders are invited to attend the annual general meeting of the Leaseholders’ Action Group. This is a group recognised by the council to put forward leaseholders’ interests, with its own constitution, elected committee and representatives on consultative groups.
5.73 The Leaseholder Action Group works to support and represent the needs of the council’s leaseholders. Contact details for the chair of the group and the Resident Involvement Officer can be found on the Leaseholders’ page of the council’s website.
5.8 Payment for major works
5.81 The council recognises that some of our leaseholders may have difficulty in paying for major works.
5.82 The council does not run a reserve fund or sinking fund for particular major works contracts. Instead, you're not normally required to pay your share of the cost of major works until they have been completed. Major works are included in your Certificate of Expenditure for the year in which they are completed. Certificates are sent out at the end of September each year.
5.83 Ways to pay
If you have difficulty with payment and want to discuss an arrangement to pay or take out a council loan, contact the Central Collection Team.
Independent money advice is available from certain agencies such as Citizens' Advice Bureau or Money Advice Plus.
Outside bodies or the council itself may have helpful payment options where a service charge for high-cost works has been levied.
From bodies other than the council:
- if you have a mortgage, your mortgage company may add the amount to your existing mortgage
- you may be able to get a loan from a private lending institution such as a bank or building society
- if you're a leaseholder and are over pension age, you may be entitled to help with your service charge
- if you're of working age, depending on your circumstances, you may be entitled to help with your service charge
From the council:
- you can discuss spreading the payment with the council’s collection team
- you can discuss with the council’s collection team taking out a council loan to spread the cost for up to ten years
- if you're over pension age, an interest-only loan from the council may help
For resident leaseholders only, we may be able to agree on:
- an equity loan with you (where there is no interest involved, but the council would receive an agreed share of the selling price on a future transfer)
- a maturity loan (where the loan amount and interest are repaid on a future transfer of the flat)
- a long-term loan at interest up to 25 years
5.84 Discretionary Reduction of Charges
The Social Landlords Discretionary Reduction of Service Charges Directions give the council the discretion to reduce service charges in respect of works of repair, maintenance or improvement in cases of extreme hardship.
If a leaseholder makes an application under this discretion, the council will consider the case on its merits, taking into account whether the dwelling is the leaseholder’s only home, their financial resources, their ability to pay over a longer period of time, the impact on the value of their home and other matters.
A formal report in each case with supporting documentation goes to the Assistant Director of Housing for a decision in consultation with the Chair of the Housing Committee.
Applications for the council to exercise this discretion should be made to the Leasehold Team.
5.85 It's your responsibility to pay the service charge. If you do not make payments, it could lead to legal arrears recovery action being taken, which may result in a County Court Judgement or even put your home at risk.
5.9 Council loans
5.91 Interest is charged on a council loan, and the council may change the rate by giving you one month’s notice.
5.92 If you already have a mortgage for your property with a bank or building society, we strongly recommend you speak to your lender before you apply for a council loan. This is because their terms may be better than those the council can offer.
5.93 If you pay for the major work using a council loan, a charge will be registered at the Land Registry against your flat as security on the amount you borrow. This means that if you do not pay back the loan, you risk losing your home.
5.94 There is a fee for this registration and an extra administration charge for the loan. These fees can be added to the amount of the loan.
5.95 You cannot get a council loan to pay for the monthly service charge.
6. Disputes, disagreements and complaints
6.1 Repairs
6.11 If you report a repair which is not attended to, or a repair is carried out poorly, contact the Repairs Helpdesk.
6.2 Major works
6.21 If you have a problem with any major work on your building, contact our Property & Investment Team. You will normally be given the name and contact details of the project manager for any major work, either in a letter or as a notice put up in the building.
6.3 Managing the building and neighbourhood
6.31 If there is a problem with the quality of a service provided, for example, cleaning or grounds maintenance, contact Housing Customer Services.
6.32 Any problems with neighbours, your block, or your estate may also be reported to Housing Customer Services.
6.4 The Service Charge
6.41 We are always keen to improve our services to reduce the need for complaints. We also welcome suggestions from you on how we can achieve this. However, we know there will be times when you're not happy and that you will want to raise with us.
6.42 If you dispute or disagree with some aspect of your Service Charge and are thinking of withholding payments while the council is resolving the matter - do not withhold the parts of the charge you do not dispute.
6.43 A breakdown of the estimated costs for each service is provided to you at the beginning of each financial year (1 April), usually sent out in March.
6.44 Your complaint should be set out fully in writing. We can always meet you and help with this if you ask us.
6.45 Our aim is to make sure everyone is dealt with fairly and equally and that you're treated with courtesy and professionalism at all times.
6.5 Disputes procedure
6.51 Although the council has its own complaints procedure, because the area of leaseholders’ service charges is very specialised, Housing has its own procedure to try to resolve any problems.
6.52 If we investigate your complaint, and you're not satisfied with the outcome, you will be advised to apply to the First-tier tribunal to determine the matter or take your own legal advice.
6.53 The First-tier tribunal has been given powers by the government to look at service charge disputes. It's independent and impartial. Hearings are semi-formal and normally consist of 3 members – a lawyer, a valuer, and a layperson.
6.6 Stage 1
6.61 If you think your service charge is wrong or do not believe the cost to be reasonable or the service satisfactory, you should write to the Leasehold team with your complaint.
6.62 If you would like advice or help in setting out your complaint in writing, a Leasehold Officer will be able to help you with this.
6.63 You will get a written reply within 10 working days or a letter saying why this is not possible and when a reply will be sent.
6.7 Stage 2
6.71 If you do not agree with the answer you get, you should write to the Business & Performance Manager. They will decide whether your dispute is valid and whether further investigation is needed.
6.72 A reply will be sent to you within 10 working days. If a reply cannot be sent in that time, we will send you a letter telling you why and when a reply can be expected.
6.73 If your dispute is not upheld, you will be expected to pay your service charge.
6.8 Stage 3
6.81 If you do not agree with the Stage 2 response, you should write to the Assistant Director (Housing). They will decide whether your dispute is valid and whether further investigation is needed.
6.82 You will be sent the council’s full reply when everything has been looked into.
6.83 If no resolution has been reached at the end of this process, the council will consider whether alternative dispute resolution, such as mediation, would be appropriate. You will be told that you have the right to seek a determination at the First-tier tribunal. For this, you should think seriously about getting your own legal advice.
6.9 Applying to the First-tier tribunal
6.91 The First-tier tribunal can decide all aspects of the duty to pay service charges for repairs, improvements and services. This includes decisions on whether the costs are reasonable, the standard of work is reasonable and whether leaseholders have been properly consulted.
6.92 The council’s own internal disputes procedure should be followed in the first instance. However, if you're not satisfied with the outcome, you can apply for a determination by the First-tier tribunal.
6.93 You may make applications to your local panel office, which will be able to provide forms for you to complete and will let you have guidance notes on procedure. A variable application fee is payable for applications. If you or your partner receive certain benefits, you can apply for a waiver of the fees. If the case cannot be resolved at an earlier stage, there is also a hearing fee.
Find contact details for the Southern regional office.
6.94 The Leasehold Advisory Service (LEASE) publishes a large number of detailed booklets about your rights – including applying to the First-tier tribunal – which can be downloaded from their website or ordered as pamphlets.
7. Selling your flat
7.1 You do not need the council’s permission to sell your flat, although the council must be notified of any change of ownership within one month.
7.12 If you sell your flat within 5 years of purchasing it under the Right to Buy scheme, you will usually have to pay the discount back to the council. The exact terms are set out in your lease.
7.13 You will not have to pay back the discount if the sale or transfer is to your spouse or another member of your family who has lived with you for at least 12 months.
7.14 If you sell your flat within 10 years of it being purchased on the Right to Buy, the council has the right of first refusal. This means, through your conveyancer, you must offer the council the opportunity of buying back the property if it so wishes.
8. Letting your flat
8.1 You do not need the council’s consent to let out your flat and become a landlord, but you must:
- notify us about any sub-let within 30 days, and keep us informed of all the details and any changes to those details
- make sure your tenants keep to the terms of the lease, as you're responsible for their actions
8.11 Letting out your flat may affect the Buildings Insurance premium and can affect the risks covered.
8.12 If your flat is left unoccupied for more than 30 days in a row, you're no longer insured against malicious damage, damage caused by theft or attempted theft, or by escape of water from fixed pipes or appliances.
8.13 Contact Leaseholders' Advice for a change of contact details notification form to fill in.
8.14 By law, as a landlord and as a leaseholder, you're responsible for making sure that gas appliances are kept in good order and checked for safety at least every 12 months. You must keep a record of these checks, which must be carried out by a Gas Safe registered contractor.
8.2 Gas appliance servicing
Our partnering contractors offer gas servicing to council leaseholders at competitive rates. Payment is required up front. Phone K&T on 01273 571 531 for more information. (Phone number goes to PHJones?)
A regular service will give you peace of mind against costly breakdowns, preventable heating costs, and safety in your flat and the building.
9. Buying the freehold
9.1 Long leaseholders of flats have the right, as a group, to buy the freehold of the building if they and their building qualify. This is known as ‘collective enfranchisement’.
9.11 Leaseholders have this right even if the freeholder or landlord does not wish to sell. Once they have bought the freehold, leaseholders themselves take over the management of the building.
9.12 To qualify, certain conditions have to be met:
- the block must have 2 or more flats
- no more than 25% of the internal floor area must be used for non-residential purposes - for example, as an office or a shop
- at least two-thirds of the flats in the block must be leasehold
- leaseholders numbering at least half the flats in the building must want to buy the freehold
- the group of leaseholders purchasing is properly constituted in line with the law
9.13 If your block fails in any of the above tests, you will not be able to buy the freehold.
9.14 It's essential you get legal advice if you and the other leaseholders wish to apply to buy the freehold of your building.
9.15 Because the process can be long and costly, the council will usually agree to a voluntary sale of the freehold if the following criteria are met:
- the property contains 4 flats or fewer
- all the flats are leasehold
- all leaseholders agree to the sale
- the price meets the council's valuation and its reasonable costs are met
- the group of leaseholders buying is properly constituted in line with the law
9.16 If you would like further information, contact the Leasehold Team.
10. Rights and responsibilities
10.1 This section sets out a summary of the basic rights and duties of the council, as freeholder, and yourself as owner of a leasehold flat. Your lease will give you the exact details.
10.2 The council's responsibilities
10.21 The council has a duty to:
- keep in repair the structure, exterior and common parts of the building, including drains and external pipes
- keep the building insured to the full cost of reinstatement
- manage your block or estate in a proper and reasonable manner
- advise leaseholders of interim service charges to pay
- provide a Certificate of Expenditure by the end of September showing actual costs for services to your block over the previous year and how much you need to pay
- consult with leaseholders before carrying out expensive works to the building
10.22 The council also has the right:
- of entry - to carry out its duty to keep in repair, to carry out improvements, or to inspect (having given reasonable notice, unless in an emergency)
- to rebuild, restrict or develop any part of the block, estate or neighbouring land
10.3 The leaseholder's responsibilities
10.31 As a leaseholder, you have a duty:
- to pay Ground Rent, if in your lease agreement
- to pay the service charge and major works costs provided they have been reasonably incurred
- not to make structural alterations or additions, including new windows, without the council's written permission
- to advise the council of any transfer of lease, mortgage or sub-let
- to keep the flat in good repair
- to observe all the terms and regulations set out in your lease
- to send a copy of any notice affecting the property to the council
- not to do anything which may be a nuisance to residents or cause damage to any part of the building
- not to play loud music which annoys neighbours
10.32 You also have the right:
- to information on the service charge and the money spent on your block of flats
- to be consulted on expensive works and long-term contracts that affect the building
10.4 Making an insurance claim
As a leaseholder, there are 2 types of insurance cover you need to have.
1. Building insurance
This is to insure against loss or damage caused by certain perils (including fire, storm and escape of water) to your interior decorations, fixtures and fittings and for your share of damage to common parts of the building. As the landlord, the council arranges this cover. You pay for this through your service charge.
The lease you have bought describes the premises that are leased to you. They include the interior of the flat, which is your responsibility to keep in repair. The council cannot remedy damage within your premises. The policy is in place so that you're able to claim back any costs you incur on your own contractors rectifying any insured damage.
2. Contents insurance
You will need to take out your own contents insurance. This is to cover damage to any items that are not fixed, such as furniture, rugs or electrical equipment.
Making a claim - a step-by-step guide
If you're unlucky enough to suffer damage to your flat from an insured peril, you should follow the steps below. The perils and exclusions are set out in the policy booklet. The Leasehold Team can send you a booklet if you do not have one.
Step 1
Ensure that the cause of the damage has been rectified. If the source is from another flat, this will mean confirmation from your neighbours that it has been fixed.
If you're unable to get confirmation from your neighbours, contact our Housing Customer Services for assistance.
If it's from a common part of the building, contact our Repairs Helpdesk.
Step 2
If interior decoration, plasterwork or fixtures and fittings are damaged, you should telephone the insurers on the number printed in the policy booklet. If you cannot find the number, contact the Leasehold Team. Failure to notify the insurer of a claim within 90 days of any occurrence will void the claim.
Step 3
Tell the insurers, or their claims handlers, what has happened and that you're a leaseholder of Brighton & Hove City Council.
The insurers aim to keep the process as simple as possible, and there should not be any forms to complete initially. It will normally be your responsibility to select a contractor and arrange for repair work to be carried out.
Step 4
If contents such as furniture or electrical goods have been damaged by an insured peril, you should contact your own contents insurance provider.
Do you have the right level of cover?
There are 2 levels of building insurance cover, You can choose to have cover for standard perils only. Alternatively, you can have coverage that extends to include accidental damage. You can contact the Leasehold Team to make sure you have the cover you want. They can also let you know the cost of the various premiums.
If you encounter any difficulties in making an insurance claim, contact our Insurance Team.
11. Other information
11.1 Carelink Plus
CareLink Plus is the council’s 24-hour community alarm service, which can be put into your home and linked through your telephone system to the Carelink control centre.
In an emergency, you use the alarm button, pendant or pull-cord to alert the Carelink staff, who will get to you as soon as possible.
Carelink is available to anyone living in Brighton & Hove who needs to summon help quickly in an emergency.
11.2 Nuisance and harassment
The council wants all residents to enjoy their homes in peace and comfort, free from nuisance and harassment.
Council tenants and leaseholders all have obligations not to cause annoyance or upset to their neighbours.
If you're experiencing any form of harassment, you can contact Housing Customer Services.
11.3 Safety and security
Each resident is responsible for the safety and security of their own flat. You can get practical advice from Sussex Police.
11.4 Repossession
If you fall behind in your mortgage payments, you could risk losing your home and becoming homeless.
If you get into difficulty with your payments, you should seek help straightaway. The earlier you ask for help, the greater the chance of getting it sorted out and coming to an arrangement with your lender.
Have a look at the list of useful contacts for details of agencies that may be able to help.
Useful terms
Block
Your ‘block’ is the building described in your lease for which you're responsible for paying your share of the council’s costs.
Breach of covenant
When a duty set out in the lease is broken.
Certified accounts
End-of-year accounts that have been signed by an accountant as dealing fairly with matters and supported by receipts and documents.
Collective enfranchisement
Buying the freehold of the block by a group of leaseholders.
Commonhold
A new form of flat ownership that does not apply to council leaseholders.
Consents
Written permission you require from the council to do various things, such as make structural alterations or additions or keep pets.
Consultation
Your right to be told about expensive works and contracts, and in some cases to suggest someone to carry out the job.
Demised premises
The parts of the building you have leased, sometimes including a garden.
Forfeiture
Ending of the lease and repossession by the landlord because the lease conditions have not been met.
Improvements
The provision of something new to the building – for instance, wheelchair access or CCTV.
Inspection of accounts
Your right to see the documents and receipts used to work out your charge.
Landlord & Tenant Act 1985
The original Act of Parliament, now changed by other Acts (including the Commonhold and Leasehold Reform Act 2002), which sets out what a service charge is, that it must be ‘reasonably incurred’, how you should be consulted, and your right to inspect accounts.
Lease types (Brighton)
There are 2 lease types in Brighton. The first lease did not allow the council to charge for works of improvement. The leases were changed in 1986, and after that date allowed for improvement contributions.
Lease types (Hove)
There are 4 lease types in Hove. The differences concern who has to repair windows and external doors of the flat and how the service charge is worked out. Under the lease type used now, the council has a duty to repair, while the leaseholder must pay the full cost.
First-tier tribunal
Formerly the Leasehold Valuation Tribunal, an independent and impartial body given binding powers by the Government to settle Service Charge disputes instead of going to court.
Leaseholders Action Group
A group working for Brighton & Hove City Council leaseholder, with a constitution, an elected committee, and representatives on various groups within the tenant participation structure.
Long-term agreement
A contract for more than 12 months to provide works or services.
Management charge
The part of the Service Charge that covers the council’s costs in managing the building.
Qualifying works
Works that cost you £250 or more, and on which you will generally be consulted in a specified way.
Recognised Tenants’ Association
Under Section 29 of the Landlord & Tenant Act 1985, a group of service charge payers in a building who have been recognised by the council for the purposes of consultation and common interest.
Section 125 Notice
The notice of Right to Buy purchase price sets out major works costs for the first 5 years of the lease and the most the council can charge during this period.
Sinking fund
Collection of advance payments for future major works projects – also called a reserve fund. The council does not run a sinking fund for its properties.
Sub-letting
When you let your flat to someone else – if you do this you become a landlord and are responsible for the actions of your tenants. You have to tell the council all the details within one month, otherwise, this becomes a breach of covenant.
Useful contacts
Brighton & Hove City Council services
Housing
Right to Buy and Leasehold Team.
Other council services
Rubbish, recycling and street cleaning.