Leasehold Management Policy

3. Aims and objectives

3.1 Policy Statement

3.1.1 B3Living is committed to meeting our responsibilities to leaseholders under the terms of the lease and our legal obligations, providing leaseholders with high quality services in the management and maintenance of their homes.

3.1.2 B3 Living will offer our lessees the same standards of customer care and performance as we offer to our tenants. We will protect and respect the rights of leaseholders.

3.1.3 B3Living will comply with guidance on good practice in managing leasehold properties which may be issued by the Government from time to time.

3.1.4 B3Living will provide clear information for lessees on all aspects of the service.

3.1.5 The actual end-of-year service charges statement will be sent to all leaseholders annually, in accordance with legislation.

3.1.6 B3Living will collect from lessees all monies due from them under the terms of their leases and will repay, in a timely manner, all monies and refunds due to Leaseholders. We will support leaseholders who experience financial hardship and struggle to pay their service charges.

3.1.7 We will ensure that Leaseholders uphold the covenants in their leases, including those relating to anti-social or nuisance behaviour likely to affect other residents. Leaseholders can expect appropriate support from B3 Living in resolving issues of neighbour nuisance.

Information provided to prospective lessees

3.1.8 Before completing arrangements for the purchase of leasehold property, prospective lessees will be provided with full and clear information about:

3.1.9 the details of the property

3.1.10 arrangements for managing the property

3.1.11 charges payable under the lease

3.1.12 the financial and other responsibilities which lessees undertake, immediately and in the future.

3.1.13 We will provide new lessees with welcome packs and the leasehold handbook.

3.1.14 Prior to the preparation of each lease, a section 125 notice will be issued to the potential purchaser, giving details of the estimated annual service charge, and other charges arising over the first 5 years of the lease as a result of major repairs and cyclical maintenance.

3.1.15 All prospective purchasers will be advised to obtain independent legal advice and will be urged to pay careful attention to their own legal advisers.

3.1.16 We will meet all prospective PRTB/RTA lessees to discuss the process, obtain information to complete relevant checks and discuss financial and other responsibilities they will have as a leaseholder.

Terms of the lease

3.1.17 The terms of the lease have been established in accordance with legislative requirements and cannot generally be altered without the express permission of lessees (and their mortgagees). Should it be judged necessary to review the terms of the lease, B3Living will consult leaseholders.

3.1.18 The lease will in all cases set out clearly:

3.1.19 the procedures for the leaseholder to assign the lease or end it by surrender;

3.1.20 the grounds for B3Living to end the lease by forfeiture or re-entry;

3.1.21 details of the respective responsibilities of the leaseholder and B3Living for repairs and maintenance to the property, the structure and the common parts;

3.1.22 for shared ownership leases, the opportunities and arrangements provided for the lessee to acquire an additional share of the equity.

Services

3.1.23 B3Living will meet its responsibilities as freeholder which are as follows:

► to repair and maintain the structure and exterior of the flat and the block of which it forms part, and to make good any defect affecting the structure;
► to maintain other property over which the lessee has rights (such as common parts of the block or estate);
► to provide adequate insurance cover for the structure, common parts and any amenities which are B3Living’s responsibility;
► to ensure the provision of services to common parts such as lighting, cleaning, grass cutting etc.
► Any other services in accordance with individual lease terms.

Service Charges

3.1.24 B3Living will assess a charge to cover the costs of these services, to match as closely as possible B3Living’s actual and necessary costs in providing the services. In addition, a management fee will be charged.

3.1.25 The principles adopted by B3Living for setting charges are set out in the Leaseholder Handbook. This includes the way that service charges are assessed and the services covered. Where the charge is variable, the lease will specify in detail the arrangements for collecting contributions towards additional costs and for refunding overpayments. The lease also stipulates when any charges are payable.

3.1.26 Leaseholders can request information on their service charges throughout the year

3.1.27 Once year end accounts are issued, leaseholders can request to inspect accounts, receipts or other documentation which supports the summary of costs and charges to leaseholders.

3.1.28 B3Living will collect sinking fund (reserve fund) contributions in accordance with the terms of the lease. Contributions will be set at a level intended to reasonably reflect anticipated future major repairs, maintenance and replacement costs.

3.1.29 Funds will be held and used only for the purposes set out in the lease, and leaseholders will be provided with clear information on contributions, balances and planned use of the fund upon request.

Payment of Service Charges

3.1.30 B3Living will endeavour to collect service charges promptly, efficiently and in a way that is convenient to lessees by providing maximum opportunity to pay. This will be achieved through:

► notifying lessees of the service charge due in respect of their property in accordance with legislation
► sending annual invoices with a breakdown of quarterly instalments for those not paying by direct debit
► offering the following methods of payment:

• • • Debit/Credit card Payments via Automated Telephone Payment Line
    • Direct/Internet Banking
    • Payment via B3Living website
    • Cheques
    • Direct Debit
    • Payment Cards – for use at Post Offices and Paypoint Outlets.

3.1.31 All leaseholder service charge accounts will be reviewed regularly after payment has become due. Where arrears occur, appropriate action will be taken to recover the debt.

3.1.32 B3Living will aim to reach an agreement with the lessee for repayment of the debt within the current financial year.

3.1.33 Where the lessee still has a mortgage, the mortgage provider will be contacted if arrears exceed £350.00 or the debt exceeds 3 years.

3.1.34 Where other courses of recovery action have failed, consideration will be given to instituting legal proceedings. Legal action may include county court judgement issuing Section 146 Notices or following persistent failure to pay service charges, action for forfeiture. Any associated costs for recovery will be recharged, including any interest.

Alterations & Improvements

3.1.35 Leaseholders and Shared Owners are free to carry out minor works within their property, such as redecoration, renewal and general day to day maintenance.

3.1.36 B3 Living’s permission will be needed before alterations or improvements can be carried out, known as Landlord’s consent.

3.1.37 Leaseholders are required to provide us with full details of any works to be carried out.

3.1.38 Each type of work is different and the information we need to decide will vary. Leaseholders should contact us to discuss when thinking about any works.

3.1.39 Where customers carry out alterations, improvements or other works, approval may be subject to appropriate evidence that the works will be completed by reputable and competent contractors and in accordance with building regulations, statutory requirements, planning requirements and any relevant certification.

3.1.40 Requests should be made in writing and we will respond, in writing, detailing the reasons for the decision and any conditions we are attaching to it.

3.1.41 Permission will usually be granted, unless the proposed improvement or alteration:

► Breaches any planning regulations or conditions
► Affects the structure of the building for which B3 Living is responsible or affect future maintenance liabilities.
► Involves changes to rights of way or communal areas
► Reduces the value of the building
► Would be a breach of lease if granted

3.1.42 We may inspect work carried out under Landlord consent to ensure it meets the relevant regulations and legislation.

Permissions

3.1.43 Some leases determine that permission is required prior to carrying out certain actions, for example keeping a pet or running a business from home.

3.1.44 Permission requests will be dealt with in a timely manner, in accordance with the lease, local management arrangements and relevant legislation in place at the time.

3.1.45 B3 Living will not withhold consent unreasonably but will ensure any actions do not impact negatively on neighbours, the building or the environment.

Repair and Improvement Works

3.1.46 To permit greater flexibility in property management, lessees may, with B3Living’s permission, undertake works to their own flats. Permission will usually only be withheld where the lessee’s proposals do not meet B3Living’s specification for the works, or where the works will not be completed within B3Living’s established timetable.

3.1.47 We will use B3Living’s in-house Direct Labour Organisation (DLO) repairs service for the majority of responsive repair works.

3.1.48 If the works are above the prescribed limits for qualifying works, we will follow the relevant legislation and obtain the appropriate estimates.

3.1.49 We will offer leaseholders the opportunity to use the DLO service for repairs that are their own responsibility (subject to availability) at a cost to the lessee.

Subletting

3.1.50 If a leaseholder wishes to sublet their home, they must notify us in writing and provide their new correspondence address and any other contact information. They must also keep us updated should any of their details change.

3.1.51 We may, in some cases, be required to gain consent for subletting. Leaseholders must check with us before subletting part or all of their home.

3.1.52 We will only correspond with the Leaseholder unless authorisation is received to deal with someone else. (other than a formally instructed solicitor)

3.1.53 We will take action against the leaseholder if any sub-tenant and or visitors breach the terms of the lease. We will require the leaseholder to take relevant action with their subletters.

3.1.54 Service charges remain the leaseholder's responsibility should they decide to sublet their home.

3.1.55 Shared Ownership leases do not generally permit subletting. However, in exceptional circumstances, B3Living may consider granting consent on a temporary basis, subject to the terms of the lease and relevant government guidance. Any such consent may be time-limited and will not be unreasonably withheld where appropriate evidence is provided.

Remortgage

3.1.56 Leaseholders may remortgage their property in accordance with the terms of their lease, where required, leaseholders must obtain B3Living’s consent prior to completing the remortgage.

3.1.57 Consent will not be unreasonably withheld, subject to compliance with lease terms and there being no material breaches, including service charge arrears.

Selling a Leasehold Property

3.1.58 A leaseholder can sell their home at any time.

3.1.59 If the home was purchased under Right to Buy (RTB) or Right to Acquire (RTA), the lease will state that it must be offered back to us first if selling within the first ten years of purchase.

3.1.60 If the home was purchased under RTB or RTA and is sold within the first five years, some or all of the discount that was received will need to be paid back.

3.1.61 If a leaseholder has any service charge arrears, these will need to be paid prior to or on completion.

3.1.62 Once the home has sold, the buyer’s solicitor is required to send a “Notice of Transfer” to B3 Living, giving details of the new leaseholder. Our records can not be amended until this Notice is received.

3.1.63 We may consider buying back a home. Further information can be obtained from our Buy Back Policy.

Lease Extension

3.1.64 Our full leasehold customers can request an extension to the years left on their lease using either a statutory or voluntary route. If they wish to follow the statutory route, we will start the process on receipt of the section 42 notice and meet all statutory timescales.

3.1.65 If a voluntary route is used, we will start the process on receipt of a written request.

3.1.66 Where B3Living does not own the freehold interest, any lease extension will be subject to the terms and remaining length of the head lease. B3Living cannot grant a lease extension beyond the term of its own interest.

3.1.67 Where appropriate, B3Living may seek to agree a lease extension with the freeholder; however, this is not guaranteed and will depend on the terms of the head lease and the agreement of the freeholder.

3.1.68 For all lease extension requests, the leaseholder will be responsible for any associated fees, including surveyor fees, legal fees and an administration fee.

Enfranchisement

3.1.69 Leaseholders have the right to buy the freehold of the block (subject to meeting relevant criteria)

3.1.70 Should formal requests be received from leaseholders, we will comply with the relevant law and process.
Right to Manage

3.1.71 Leaseholders of flats have the right to force the transfer of the Landlord’s management function to a company set up by them and take over the management of communal services to their block. This is known as the Right to Manage. We will comply with relevant legislation for any request submitted.
Information and Consultation

3.1.72 All lessees will be informed of:

► the name, address, telephone number and times of availability of the B3Living staff responsible for the collection of charges and the provision of services;
► respective obligations of the lessee and B3Living for carrying out repairs;
► procedures for reporting those repairs for which B3Living is responsible;
► arrangements for consulting lessees;
► B3Living’s complaints procedure;
► B3Living’s insurance cover and guidance on obtaining insurance for those areas which are the lessee’s responsibility.

3.1.73 B3Living will adopt clear procedures for consulting lessees about:

► repair work which will incur costs above the limit prescribed by legislation. This may include the provision of alternative estimates of the costs, before B3Living enters into contract for the work. B3Living acknowledges that if it does not follow these procedures, its right to recover the cost of the work may be limited.
► the extent and costs of any optional services.
► proposed changes in arrangements for maintenance, management or service provision which would affect lessees.

Breaches of the Lease

3.1.74 B3Living will take appropriate action whenever it becomes aware that a leaseholder is acting in breach of the terms of their lease.

Such breaches may include:

► unapproved works
► improper use of their home (i.e. running a significant business or creating a HMO)
► failure to maintain, or damage to, premises
► refusal of access for B3Living’s officers or contractors
► harassment or neighbour nuisance
► non-payment of charges
► the tenant of the leaseholder breaches the lease in any way

3.1.75 In all such cases, B3Living will first serve notice on the leaseholder requiring them to remedy the breach. If the breach continues, further action will be taken, which may include seeking an injunction or taking action against the leaseholder for the forfeiture of their lease.

Administration Fees

3.1.76 Lessees are notified in advance of the relevant administration charges that may be chargeable during the debt recovery period: In addition to the above, Home Ownership Team will attempt to contact the Lessee by telephone prior to commencing recovery action via the mortgage lender or the County Court.

Major Works

3.1.77 We will observe the statutory requirements for consultation under section 20 of the Landlord & Tenant Act 1985 (as amended) We will consult our leasehold customers on:

3.1.78 Proposed major works or improvements for which any leaseholder will be required to pay in excess of £250.00

3.1.79 Entering into or changes to Qualifying Long Term Agreements for maintenance contracts (more than 12 months) for which any leaseholder will be required to pay in excess of £100.00

3.1.80 The statutory consultation procedure will comply with leasehold legislation.

3.1.81 In certain circumstances we may request a dispensation from the First Tier Tribunal to allow us to proceed without the consultation period. Eg: urgent safety works.

3.1.82 In addition to our standard payment terms, there are a range of other payment options available to leaseholders that have been invoiced for major works. We also offer a financial assessment to ensure the lessee is given the most appropriate payment plan to suit their financial circumstances and provide comprehensive information on organisations that can offer support and advice if a leaseholder is experiencing financial difficulties.

4. Equity, diversity and inclusion

4.1 This policy applies to all lessees and will be delivered in a fair, consistent and inclusive manner, regardless of any protected characteristics.

4.2 Before any legal action is taken for non-payment of service charges, B3Living will undertake a proportionality assessment. This will ensure that all reasonable steps have been taken to understand the individual circumstances of the leaseholder, including any vulnerabilities or protected characteristics, and to provide appropriate support, advice or reasonable adjustments where required.

5. Data protection and information security

5.1 B3Living will ensure that all personal data is collected processes , stored and shared in accordance with its data protection policy and relevant date protections legislation.

6. Customer voice

6.1 B3Living is committed to listening to and acting on the views of its leaseholders. Feedback on the services we provide will be actively sought through regular engagement, including surveys and other consultation methods.

6.2 Performance and customer satisfaction will be monitored through Tenant Satisfaction Measures (TSMs) and other feedback mechanisms. Insights gathered will be used to identify areas for improvement and inform service delivery priorities for the Leasehold team

7. Compliance

7.1 This policy complies with all relevant legislation and regulatory requirements, including the Landlord and Tenant Act and the Leasehold Reform, Housing and Urban Development Act. B3Living will also have regard to applicable regulatory standards and good practice guidance in the delivery of leasehold services.

► Linked policies, procedures and guidance
► Linked policies, procedures and guidance
► Income Management Policy
► Antisocial Behaviour Policy
► Safeguarding Policy
► Major Works and Section 20 Procedure
► Repairs and Maintenance Policy
► Asset Management Strategy

8. Health and safety considerations

8.1 B3Living will manage health and safety risks associated with leasehold and shared ownership homes in line with its landlord, freeholder and building management responsibilities, particularly where risks relate to communal areas, shared services, building structure or services provided by B3Living.

8.2 Relevant health and safety requirements will be considered when delivering repairs, maintenance, major works, inspections, estate services and services to communal areas, including fire safety, asbestos management, water hygiene, lift safety, electrical safety, gas safety, working at height and safe access arrangements where applicable.

8.3 Where leaseholders or shared owners request permission for alterations, improvements or other works, health and safety implications will be considered before consent is granted. Conditions may be attached to any consent to protect residents, visitors, staff, contractors, the building and neighbouring homes.

8.4 Leaseholders remain responsible for ensuring that any works they commission within their own home are carried out safely, by competent persons where required, and in accordance with the lease, statutory requirements, building regulations and any consent conditions issued by B3Living.

8.5 B3Living will take reasonable steps to ensure that contractors and staff working in communal areas or attending leasehold properties follow appropriate safe systems of work, provide information to residents where works may affect them, and manage access in a way that reduces risk and disruption.

8.6 Where urgent works are required to address a health, safety or building safety risk, B3Living may need to act quickly to protect residents, visitors, staff, contractors or the building. In such cases, leaseholders will be informed as soon as reasonably practicable and any statutory consultation or dispensation requirements will be followed where applicable.

9. Responsibilities

9.1 The Home Ownership Team Leader and Home Ownership Advisors are responsible for the day-to-day implementation and delivery of this policy.

9.2 The Housing Manager is responsible for overseeing the effective and consistent application of this policy by the Leasehold team.

9.3 The Head of Housing has overall strategic responsibility and accountability for this policy