Leaseholders
Who can be a leaseholder?
A leaseholder is either:
- A tenant who has bought their flat, under the Right to Buy Legislation, from Derwentside District Council or Durham County Council - they own their own property but not the block it’s in, or the land its built on
- Someone who has bought a flat from a Derwentside Homes leaseholder and takes over the lease
- Someone who inherits the lease in a will.
As a leaseholder, you have to pay your flat’s share of Derwentside Homes’ costs of maintaining the block and providing services. This is called a ‘service charge’ and your lease will set out how this is charged. If you have lost your lease we can provide a copy, but there is a charge of £25 for this.
What is a freeholder?
Derwentside Homes is the freeholder, as they own the building in which you live and is responsible for looking after the structure, exterior and common areas of the block.
What are service charges?
Derwentside Homes service charges are basically made up of the cost of:
- Our services
- Arranging those services is called the management fee. This means you pay for the service you receive and you pay for Derwentside Homes management costs in arranging that service.
Why do I pay service charges?
When you bought your lease you became a ‘shareholder’ in the building your flat is in. This means you have a responsibility to pay your share of the costs of maintaining and managing the building. If you owned a freehold house, you would have to pay all the costs of managing and maintaining your house.
What if I don’t agree with the charges I’ve been asked to pay?
If you don’t agree with a service charge or with a valuation for works, then contact Derwentside Homes and we will seek to resolve your problem. If you are not satisfied with the company’s response, you may want to have your case heard by the Leasehold Valuation Tribunal (LVT).
How do I pay the Service Charge?
You will be sent an annual Service Charge invoice, which, if it is over £60, can be paid in 12 monthly instalments, by arrangement with the Leasehold Section.
We offer a range of payment methods:
- Standing Order
- Cheque or cash
- Debit Card
- More information on ways to pay
Where I share the services with a tenant in my block do I contribute towards the tenants costs through my service charge?
We pay the tenants share of the costs for repairing, maintaining and managing properties and blocks. The tenants then pay us back through their rent and service charges. Leaseholders don’t put any money towards tenant’s service charges.
Can I sub-let my property?
Yes, but you must register the sub-letting with Derwentside Homes. Please write to the, Legal Services Manager with the appropriate details. A fee of £50.00 is charged for registration.
I would like to sell my property. What information do I need?
Your solicitors will need to contact the Legal Services Manager and request the relevant information. There is a fee of £50.00 for this information.
What is Forfeiture?
Forfeiture is where Derwentside Homes applies to the court to end your lease because you have broken the lease conditions.
This could happen if:
- You do not pay your service charges or ground rent
- You cause nuisance and harassment to your neighbours.
- If the court decides that you have seriously broken the terms of your lease, it may end it and give us possession of your flat. You would lose your home and would not usually get any payment or compensation.
Can I be repossessed?
If you have taken out a mortgage to buy your lease, your mortgage lender has a 'legal charge' on your home. This means they can apply to the courts for repossession if you do not pay your mortgage.
If the court grants them possession, they have the right to evict you, sell your lease and take what you owe them out of the proceeds.
Gas Safety Reminder
Health and Safety is a top priority for Derwentside Homes. You are responsible for having all your gas appliances checked at least once a year.
If you are sub-letting your property as a landlord you have a legal responsibility to your tenant under the Gas Safety (Installation and Use) Regulations 1998. You must ensure that an annual safety check is carried out on each appliance and that a record of each safety check is kept for 2 years.
Your chance to get involved
We would like to offer you the opportunity to be more involved within this newsletter and in our different panels. If you like to know more about becoming involved please contact Susan Gowland on 01207 524284 or visit us www.derwentsidehomes.co.uk/involving-you.
Come along and make a difference!!!
