Leaseholders

Leaseholders consultation

Homes for Islington manage around 8,000 leasehold properties. While leaseholders share many common issues with secure tenants, the landlord's relationship with them differs in many respects from that with secure tenants.

The 'property contract' (e.g. the lease) and the national legal framework define minimum standards for certain aspects of consultation. Those areas include those where, as a landlord, Homes for Islington incurs major 'recharge' costs.

Leaseholder consultation arrangements in Islington exceed this minimum standard and we have ensured that leaseholder interests are represented within all the recognised tenant consultation forums and additionally through the Islington Leaseholder Association.

What do we mean by leaseholder consultation?
This refers to the situation where Homes for Islington is planning to carry out works, repairs or improvements to your building or your estate, which cost over a certain amount. To be able to charge you your share of the cost of the works we have to follow a consultation procedure which is known as “Section 20” consultation.

We have to consult with leaseholders where the cost of “qualifying works” to any leaseholder is more than £250.

There are also procedures we have to follow where we’ve entered into a “qualifying long-term agreement” with a contractor.

What are “qualifying works?
“Qualifying works” are repairs, maintenance or improvement works on a building or other premises

What is a “qualifying long term agreement”?
A “qualifying long-term agreement” (QLTA) is an agreement with a contractor to provide goods or services which runs for more than 12 months. This can include carrying out major works. Consultation is required where leaseholders will have a charge of more than £100 a year.

There are now two main situations for leaseholder consultation for major works.

• Consultation for works where a QLTA is in place

As the contractor has already been chosen, as a leaseholder you cannot propose an alternative contractor, but can comment on the proposed works or the likely cost.

We will send a Notice of Intention to each leaseholder or Recognised Tenants’ Association, which:

• gives a general description of the proposed works
• says why the works are necessary
• gives an estimate of how much the works will cost the landlord
• gives a period of 30 days to make comments in writing about the proposed works or the estimates

We must have regard to any observations we receive in writing in the 30-day period and write back with a response within 21 days.

There are separate procedures for consultation before the Qualifying Long Term Agreement itself is entered into, but we’ve not covered these here.

• Consultation for works where there is no QLTA

There are two stages, and sometimes a third.

Stage 1: we give a written notice to each leaseholder and recognised tenants’ association, which:

• gives a general description of the proposed works and says why the works are necessary
• invites nominations of a contractor from whom the landlord should try to get an estimate
• gives 30 days to send any observations to us in writing

We must have regard to any written observations we receive in the 30-day period

Stage 2: we give each leaseholder or recognised tenants’ associations a written notice, which:

• includes at least two estimates for carrying out the proposed works
• gives a summary and response to any observations received

• gives 30 days to send observations in writing on the estimates

Where we’ve obtained an estimate from a nominated contractor, their estimate must be one of the ones given. Special rules apply where more than one nomination received. Again we have to “have regard” to any written observations we receive in the 30-day period

Stage 3: after the end of the 30-day period in Stage 2 we can enter into a contract for the works.

But if the contract is not awarded to a nominated contractor, or one who gave the lowest estimate, then we have to write to you saying why it was awarded and giving a summary of any observations and our response

There are slightly different arrangements where a “Public Notice” is required. This happens where the cost of the works is at a level – currently £3.8 million- where we have to comply with the European Union rules for advertising and letting contracts.

Leaseholder membership of tenant and resident associations
It is a condition of formal council recognition that the constitutions of Islington tenant and resident associations (TRAs) provide for membership to be open to all tenants, leaseholders and estate freeholders living within the TRA catchment area. Homes for Islington leaseholders may be elected as officers (i.e. Chair, Secretary, Treasurer etc.) or ordinary committee members of TRAs so long as they do not constitute a majority of either the Management Committee or the officers of the association.

Leaseholder membership of area housing panels
Leaseholders are represented on area housing panels generally via nominated tenant and resident association representatives or tenant management organisation representatives and specifically via elected leaseholder representatives.

Further information about leaseholder consultation and involvement can be obtained from:

your local area housing office
home ownership services