When you buy a flat, you are buying only part of a larger building. We, as the owner of the block, keep responsibility for maintaining all shared parts and services such as caretaking, laundry, lighting, cleaning and so on. We are entitled to a contribution towards the cost of managing and maintaining the block. This kind of ownership is called "leasehold". We generally sell council flats on a 125-year lease.
Your lease is a legally binding contract between yourself and Sandwell MBC. It sets out your areas of responsibility. The following sections are designed to assist your understanding of the legal conditions associated with the lease.
The lease is a legal document and can be difficult to understand. Before you bought your flat, your solicitor should have explained your lease in full, so you understood both your responsibilities and our responsibilities.
Common terms used in the lease
The information below explains some of the legal terms that are used in the lease.
The purchaser - refers to the person who owns the flat or maisonette (also referred to as the lease-holder or lessee).
The Council - refers to Sandwell MBC.
The building - the block in which the flat or maisonette (or rarely the house) you bought is situated.
The property - the flat/maisonette/house that you have purchased the lease for
The common parts - shared parts of the block or the surrounding area which is not let to any one person. The Council has responsibility for repair and maintenance, but you will have to contribute towards the costs. Examples include the roof, foundations, footpaths and accessways, communal gardens, external drying areas and bin areas described in your lease.
The term - the length of time that your lease will last, usually starting on the date that the first property was sold in your block - this could be several years prior to your purchase.
Our obligations under the lease
These include:
- keeping the structure of the building and common areas in good repair and condition
- repairing any structural defects which develop
- making good any damage to the building
- maintain, as far as possible, the services you received as a secure tenant
Our rights under the lease
This depends on the lease, but in general we have the right to
- After reasonable notice, enter your home to carry out works to the structure, the outside or common parts of the block
- Carry out repairs or improvements to the block
What action will Sandwell MBC take if I breach a condition of my lease?
Sandwell MBC will first write to you advising you of the breach and ask you to rectify it within a given period. If the situation does not improve then Sandwell MBC may then serve you with a notice issued under section 146 of the Law of Property Act 1925 and may then apply to the Court and seek forfeiture of your lease, damages for the breach, or both. This action could result in you losing your home.
Forfeiture for breach of Covenant
A Section 146 Notice for forfeiture for non-compliance of the lease covenants will not be issued unless the breach has been agreed by the leaseholder, determined by a court or post-dispute arbitration, or by determination by the First Tier Tribunal.
Seeking an Injunction to stop the breach of covenant
If the alleged breach of covenant is considered serious enough, Sandwell MBC will seek an interim injunction and the associated costs to prevent the breach continuing by the leaseholder. In seeking and being granted an interim order by the County Court, the determination will have been considered and granted.
A Section 146 notice will not be served until 14 days after the agreement or determination has been granted for failing to pay service charge.
Enfranchisement - Buying the Freehold
Long leaseholders of flats have the right to buy the freehold of their building as a group if they and their block qualify, under the Leasehold Reform Housing and Urban Development Act 1993 (as amended by the Commonhold and Leasehold Reform Act 2002). This is known as the right to 'enfranchise'.
Once they have bought the freehold, leaseholders can decide for themselves how to manage their block and take over the Council's responsibilities. The current requirements for undertaking buying the freehold are:
- 50% or more of the block in question must be sold to leaseholders
- A limited company must be established and maintained
Further information may be obtained from advisory groups such as LEASE (the Leasehold Advisory Service), who can be contacted on 020 7832 2500.
Their website address is www.lease-advice.org
Buying a new lease
Leaseholders have the right to renew their lease. A new lease can be bought which adds another ninety years (for a flat) or fifty years (for a house) to the time left to run on the existing lease. To qualify you must hold your lease for two years.
Selling your property (Assignment of Lease)
If you wish to sell your property, Home Ownership Services will, on written request, provide you or your solicitor with any relevant information. There may be a charge for this service.
When requesting information, you should give Home Ownership Services as much notice as possible. You may find it helpful if your solicitor has a copy of your lease, details of service charges, and details of routine and major works charges over recent years and any consultation notices for works about to be carried out.
All service charge arrears, including deferred loans, must be cleared prior to the lease being assigned on completion of the sale.
Sandwell MBC will not be party to the apportionment of outstanding service charges between its leaseholders and subsequent purchasers. It is your responsibility to ensure that your solicitor resolves this and having done so retains enough monies for charges not yet billed.
Repayment of Discounts under the Right to Buy scheme
If you purchased your property directly from the Council under the Right to Buy scheme with the benefit of discount, the Council will have informed you that if you were to sell your property within the first five years, you would be required to repay some or all the discount.
The monies are usually repayable from the proceeds of the sale. The proportion of the discount which you would have to pay on the resale would be:
Time scale proportion of the discount:
Resold within the first year 100%
Resold within the second year 80%
Resold within the third year 60%
Resold within the fourth year 40%
Resold within the fifth year 20%
The Government has laid down the discount repayment rules and the Council cannot waive them. There are, however, some exceptions to these rules relating to marriage, divorce and death, where the requirement to repay the discount will not apply.
You will not be required to repay the discount if you sell your property after five years.
If you bought your home on or after 18 January 2005 under the Right to Buy scheme, you must offer the council first refusal if the property is put up for sale within ten years of the initial purchase. You may offer your property for repurchase by the Council at any time, but discount will still be repayable under the conditions given above.
Subletting
Under the terms of your lease, you will be responsible for the actions of your sub lessees and their visitors.
Your lease will state whether you may sublet your property and whether permission must be sought. Where you can sublet, you must notify Home Ownership Services of:
- The date from which you intend to sublet your property
- Your forwarding address for correspondence
The agreement of your mortgage lender must also be sought.
If you sublet your home, you are responsible for landlord's duties under the Gas Safety (Installation and Use) Regulations 1998. This means that you are legally responsible for making sure your gas appliances, pipe work and flues are safe and well maintained.
You must also arrange for a gas safety check to be carried out by a Gas Safe engineer each year and ensure that your sub-tenant is given a copy of the annual check record.
Find out more about gas safety regulations by contacting the Health and Safety Executive's Gas Safety Advice Line on 0800 300 363 or visit its website at https://www.hse.gov.uk/gas/domestic/faqlandlord.htm.