Council Leaseholders - FAQs , Glossary of Terms and Definitions

Council Leaseholder FAQs

What are planned maintenance and building improvements. (Connected to the communal building)?

During the lifespan of the building, it will require maintenance and replacement of some facilities. This will be due to practical, aesthetical and health and safety issues.

Maintenance cycles and services management can include:
• Supply of communal lighting
• Grounds Maintenance and upkeep
• Communal Area cleaning
• Door Entry systems maintenance
• Painting and decorating
• Smoke / fire alarms maintenance
• Lift maintenance

Building Improvement works include:
• Communal aerial upgrade
• Window replacement
• Door replacement
• Roof replacement
• Door Entry replacement
• Smoke fire alarms replacement
• Replacement floor coverings
• Lift replacements

A Planned Maintenance programme will identify which works are required and when. You will be notified of any works to be carried out and how it will affect you.

Is there a leasehold consultation?

The Council have a duty to consult you regarding any of the above proposed works as stipulated in landlord and tenant legislation.

Consultation connected with one off projects/short contract duration.
If the planned works are to cost more than £250 per leaseholder, consultation is required. Should consultation not happen then the maximum we can retrieve from the leaseholder is £250. This relates to isolated works.

Consultation connected with ongoing or long term agreements
For long term agreements (12 months or more) we need to consult should any service provision exceed £100. As above, if consultation is not actioned then the maximum to be recovered is £100 per year.

Where the long-term agreement includes provision for the carrying out of works to the property (for example, a schedule of rates agreement for general maintenance), and these works will result in a charge to any one tenant of more than £250, then a separate consultation must be carried out under the provisions of Schedule 3. The original consultation under Schedules 1 or 2 in respect of the agreement itself does not provide any exemption from consultation for the works.
This requirement for consultation for works equally applies in cases of long-term agreements entered into prior to 31st October 2003 where at the time no consultation on the agreement was required.

The process of consultation will identify the true and or likely cost of the works to go ahead. You will be informed of all costs and programmes along with any specification requested for your perusal and benefit.

The Consultation Process
A Notice of intention will be issued describing
• The proposed works inviting comments back.
• Explain why the works are required.
• Give you 30 days to respond.

To provide you with a Contract Statement
• Identify the two lowest estimates for carrying out the proposed works.
• A specification best suited to the works.
• Allowance of a further 30 day response period.
• Please note if you cannot reach a better price or specification for the works we have a legally binding duty to go ahead with the works to maintain the building.

A Notice of Reason will be sent once the contractors have been selected informing you of any start dates. By law, the Council will send the notice to leaseholder’s last known mailing address. It is the leaseholder’s responsibility to update the Council of address change.

Where works are of an urgent nature, consultation will be wavered i.e. immediate roof repairs. The arrangement may be different if a ‘Public Notice’ is required. If works are deemed to be above a certain cost limit, we may have to comply with the European Union rules for advertising and letting of contracts. Nevertheless, you would be kept informed of each process.

Glossary of terms and definitions

Assignment
This is a term used when the lease is sold on when you sell your flat. The new leaseholder is the assignee

Common parts
The parts of the building or estate that can be used by all the residents e.g. stairs, lifts, paths, communal gardens etc.

Consultation
This is the process of asking for other people’s opinions. Where possible we will consult you about anything we do that affects your property.

Covenant
A covenant is a condition in your lease that you are responsible for during your ownership of the property.

Curtilage or demised premises
That part of the block included in the lease you have purchased. This will include your fl at, the common parts, any garage area and the landscaped area which will form part of your development.

Cyclical maintenance
Work that we do usually on a programmed basis

Development
The building as described in your lease in which the flat is situated.

Enfranchisement
This is the process where leaseholders may be able to buy the freehold of their block.

Fixtures
You are responsible for these fittings in your flat and include kitchen units, the bathroom suite, light fittings and central heating system.

Freehold
Absolute ownership of property and the land on which it stands

Ground rent
This is the rent paid to the landlord during the term of the lease. It is a small annual fixed sum payable by a leaseholder to a freeholder in recognition of the legal contract between them.

Improvement
Doing more work to a property than is required to satisfy an obligation to repair.

Landlord/Lessor
This is the person who owns the freehold of a property and grants a tenancy or lease to a tenant or leaseholder.

Lease
The lease is a contract that explains the Council’s responsibility to you and your responsibility to the Council.

Leasehold
An ownership of a property in a building, comprising of other flats/maisonettes and subject to the payment of service charges and ground rent for a set period of time.

Leaseholder
This is the person who had been granted the lease by the landlord and is also known as a tenant.

Mortgagee
This is a bank or building society that lent you money to buy your property.

Mortgagor
A person that has received money from a bank or building society to buy their home.

Rateable value
A property based sum used originally as a former method of local taxation but used in this context as a reasonable way of apportioning service charges.

Section 151 notice / Section 20
This is the consultation letter we must send you when we are intending to carry out works which cost more than an amount set by government regulations

Service charge
This is a payment made by a leaseholder in respect of services provided by North West Leicestershire District Council.

Subletting
This is where you rent out part of your entire home

Tender
This is what we do to get the best prices for large/major contracts such as redecorations works and based on a detailed specification of the works. We invite contractors to give their price or ‘tender’ for the work.