Agenda item
Leasehold Policy Review (CAB 080/101)
Decision:
Resolved:
That the new Leasehold policies listed as appendices to this report (CAB 080/101) be approved, subject to the following revisions to Section 6.6 of the Major Works Policy:
Discretionary £10,000 cap: the Council will, on a discretionary basis, limit major works recharges to £10,000 for certain leaseholders who qualify. The following criteria will apply:
- The property must be the leaseholders’ only or principal home and the leaseholder must be living in the property full time.
- The leaseholder must be the original RTB purchaser and the relevant work was not specified on the S125 notice.
- The leaseholder must not have any service charge arrears.
- The policy will only apply to individual recharges for £10,000 or above.
- Where leaseholders wish the discretion to be exercised they must agree to enter into a legal charge on the property securing the costs of the major works. This legal charge will be for a period of seven years and will provide the costs plus interest to become payable if the property is assigned or sold within the seven years, (except in the case of an assignment on the death of a resident partner). At the expiry of the seven year period the legal charge will be discharged and no payment required.
- The leaseholder is in receipt of state pension, income support or other state benefit or tax credit or job seeker’s allowance or is able to demonstrate exceptional hardship as follows:-
- Inability of the leaseholder to pay this major works charge even if the Council were to extend the period for payment.
- Inability of the leaseholder to pay this major works charge due to the value of this bill for major works any other relevant circumstance.
Action by:
CORPORATE DIRECTOR – DEVELOPMENT & RENEWAL (A. DALVI)
Service Head, Strategy, Innovation & Sustainability (J. Odunoye)
Minutes:
Councillor Rabina Khan, Cabinet Member for Housing, at the request of the Mayor, in introducing the report, summarised the main points contained therein, commenting as follows:-
- The report contained a revised policy to ensure that LBTH household policy complied with law and regulation, reflected the contents of the leases and improved the clarity and transparency of law.
- The new policy promoted efficiency and effectiveness in services delivery and the needs of leaseholders were addressed.
- The policy would provide a positive outcome in tightening up the position regarding sub-letting.
- A final report was awaited that would take account of the draft recommendations of the Beevers and Struthers Audit.
A Conservative Group Member, speaking with the consent of the Mayor and Cabinet, expressed the view that a number of proposals were not liked by leaseholders and should be deferred until the outcome of the Beevers and Struthers report was known. In addition, the Christmas period had reduced the consultation period with leaseholders.
A Labour Group Member, speaking with the consent of the Mayor and Cabinet, indicated that it was extremely important to ensure that the mater of illegal sub-letting was dealt with.
Councillor Rabina Khan indicated that the position regarding leaseholders had to be changed by law and she proposed amendments to the revised policy which are included in the resolutions below.
The Mayor Moved the recommendations as set out in the report (taking account of the amendments proposed by Councillor Rabina Khan) and it was:-
Resolved:
That the new Leasehold policies listed as appendices to this report (CAB 080/101) be approved, subject to the following addition to Section 6.6 of the Major Works Policy:
Discretionary £10,000 cap: the Council will, on a discretionary basis, limit major works recharges to £10,000 for certain leaseholders who qualify. The following criteria will apply:
- The property must be the leaseholders’ only or principal home and the leaseholder must be living in the property full time.
- The leaseholder must be the original RTB purchaser and the relevant work was not specified on the S125 notice.
- The leaseholder must not have any service charge arrears.
- The policy will only apply to individual recharges for £10,000 or above.
- Where leaseholders wish the discretion to be exercised they must agree to enter into a legal charge on the property securing the costs of the major works. This legal charge will be for a period of seven years and will provide the costs plus interest to become payable if the property is assigned or sold within the seven years, (except in the case of an assignment on the death of a resident partner). At the expiry of the seven year period the legal charge will be discharged and no payment required.
- The leaseholder is in receipt of state pension, income support or other state benefit or tax credit or job seeker’s allowance or is able to demonstrate exceptional hardship as follows:-
- Inability of the leaseholder to pay this major works charge even if the Council were to extend the period for payment.
- Inability of the leaseholder to pay this major works charge due to the value of this bill for major works any other relevant circumstance.
Reasons for Decisions
These are detailed in paragraphs 3.1-3.3 of the report (CAB 080/101).
Alternative Options Considered
These are detailed in paragraphs 4.1-4.2 of the report (CAB 080/101).
Supporting documents:
- LPR Cab Rep Draft 090111 v6.doc LF27010955am, item 6.2 PDF 90 KB
- Alt Draft Lhold Policy V0 8 LF2701110955am, item 6.2 PDF 85 KB
- MWks Draft Lhold Policy V0 10 LF2701110955am, item 6.2 PDF 113 KB
- Method Draft Lhold Policy V0 8 LF2701110955am, item 6.2 PDF 121 KB
- Various Draft Lhold Policy V0 7 LF2701110955am, item 6.2 PDF 84 KB