Gigantic bill from the council for Major Works

ERICS_MUM

Help me understand this. Does the council have to divide the cost across all 30 flats so that the council pays for the 20 local authority flats ? Or is the cost shared out between just the private residents, which in reality means they are subsidising the council ?

Another point which might not be relevant, what does your lease say about such maintenance work and payment ?

As others have said, although it's a horrible situation it will be sorted one way or another - you won't be the only one either in your block or any other private/council flats in the borough.

EM. Xxx

princeofpounds

Lambeth have a bad reputation for this stuff. Sounds very expensive, unless there are lifts involved. Visit lease-advice.org to understand your options to challenge this. Good luck.

[Deleted User]

My sympathies, what an awful shock. I'm a Lambeth leaseholder too. I'm still awaiting my first such bill, so don't take this as gospel, as I understand it the process is supposed to go:

- various ominous letters about anticipated works.
- a consultation, including showing you quotes from several contractors if you ask.
- Section 20 letter, which means the consultation is over, the price decided (but not necessarily the date).
- Work actually gets a start date.
- They bill you.

How far along are you with this?

pinkshoes

An almost identical case:
http://www.theguardian.com/money/2005/may/14/housingpolicy.society

It would seem costs should be split between ALL properties, but the council freeholder can decide what work gets done.

I would still insist on a full breakdown of costs and three quotes obtained.

pmlindyloo

Have a read of this:

http://england.shelter.org.uk/get_advice/repairs_and_bad_conditions/responsibility_for_repairs/leasehold_repairs

There is a procedure that the freeholder (landlord) has to follow when major works are involved.

There is also a link to contact an association to help you.

Snakey

I'm waiting for them to collect bids for some works on our block and people are saying it might be more than £30k each. Eek!

Check your options carefully to see if there is any way that you can make any of them work. I think they will put a charge on your property rather than insisting on the money if you can show that you really can't pay it (which I assume you can show), but I don't know how that interacts if you have a mortgage and there isn't enough equity to cover the extra charge. The value of your flat might be depressed at the moment precisely because of these works coming up, and so there may be more wriggle room there than you are thinking.

I did hear there was some new (last summer ish) law capping the works they could do in any five-year period, but I couldn't for the life of me work out how to tell whether it applies to any given situation. It had an old-lady name (Such-and-such's Law) which I have now forgotten.

Snakey

This is what I was thinking of:
https://www.gov.uk/government/news/flos-law-new-cap-for-council-house-repairs-comes-into-force
But I don't know whether it means what it says, or whether there's small print. I did chase down all the links to the actual rules when I first looked at it, but there were terms used that I didn't understand so I never got myself to a definite answer.

Snakey

At three posts in a row I may well be talking to myself, but here's the explanation I found (sorry can't work out how to change the font):

"The Social Landlords Mandatory Reduction of Service Charges (England) Directions 2014 has brought in a cap on the amount of service charges that can be demanded from leaseholders.

The cap is applicable towards the costs of major works undertaken by the Council, where funding in the form of a grant or other financial assistance has been used and Leaseholders are expected to contribute a proportion under the terms of their lease.

The funding relates to assistance from a grant or financial assistance of any kind, for any repairs, maintenance or improvement works to the block, including the Decent Homes Backlog Fund. This will also include any future funding or assistance provided by the Government or the Homes and Communities Agency.

The cap only applies to funding applications made on or after 12 August 2014 and applies for a five year period, meaning the Local Authority cannot demand more than the capped sum from Leaseholders over a five year period."

If anyone has any thoughts on how all of this may (or may not) apply to a typical Major Works, I'd love to hear it. Would it normally be the case that "funding" would be needed in respect of the share attributable to the council-owned properties in the block and therefore this rule would apply most of the time?

ndi149

I really feel for you, I remember being tears on the phone with the housing association when I got my estimated bill and it was for just over £10k.
In end The actual bill was £6,500, still not great but better than the estimation. There is a chance they may have over estimated. Please don't worry, speak to them and explain the situation, I believe there is also the option to have a charge put on the property which would payable if you sold the flat.

sniggings

You have to pay for "reasonable upkeep",you could argue that crittall steel windows are not a "reasonable" priced window, why have they chosen those instead of PVC.

Have to say tho, maybe doesn't apply to you but a lot of people make loads from ex-council housing, you have to take the good with the bad, I'm also amazed that so many people that buy ex-council do not know about this issue.