Help!! 25k major works leaseholder!!

danser

Hi all,

I am a leaseholder of an ex council flat in Lambeth.
After many years of savings, I managed to get access to a mortgage an made my dream of buying my first flat! I am not British (yet) and I am not familiar with all the rules and how things work regarding housing. For me everything is weird in terms of law, from the way to buy a property to dealing with the council.
In my understanding, the landlord of the building itself it's the Lambeth council.
They apparently decided to carry on some major works to the building which affect the roof and some walls outside the block. The flats involved in the works appear to be 17, and the total costs of the renovation is about £350k, which itself looks VERY high to me, if you bear in mind what they have to do!!
The amount I should pay according to them, is about £25k :eek: including the day to day service charge, which is barely my year salary.
When I first read it, I had almost a heart attack, as you can probably easy guess.
Do you know if there is any way I can oppose to that? Or any benefits I could ask to cover it??
If not, when do they expect me to pay for it? One year???? How could they think about something like that????!!!

Any suggestion, idea, clarification is really really really much appreciated!!!!!

Many thanks!!!!!
Dan

G_M

How long ago did you buy? As part of the purchase process, you (or your solicitor) should have asked the seller, and freeholder, if any major work was planned in the future.

Of course, it may be that at that time there was no such plan.....

As for your rights now, read:

http://www.lease-advice.org/information/faqs/faq.asp?item=74

http://www.lease-advice.org/publications/documents/document.asp?item=203

http://www.lease-advice.org/publications/documents/document.asp?item=20

http://www.lease-advice.org/information/faqs/faq.asp?item=75

skintpaul

Rules may have changed since i was in leasehold accounts, but there should be a separate fund for major works- apart from usual service charge for ongoing costs (building insurance, hallway lights, etc).

If lessees didn't get proper notice of intended works, they may have trouble enforcing payment- no work should be started, until all pay up?

eddddy

A few comments to add:

Assuming the work goes ahead, council freeholders can be more flexible about collecting payments that private freeholders. Indeed Lambeth say:

We’ve introduced more flexible ways to pay major works charges..

Link: https://housingmanagement.lambeth.gov.uk/lhs/

Councils normally publish their major refurbishment plans a long time in advance. (I think Lambeth Housing published a 5 year plan for 2012 to 2017). So I guess these plans should have showed up when you purchased the flat in the pre-contract enquiries.

If the vendor misled you, or your solicitor was negligent in making enquires etc, you might have a case for claiming damages - but that's likely to be a long, expensive fight.


I'm guessing you didn't have a survey. A survey might have highlighted the poor condition of the building, which might have warned you of high future repairs costs.

[Deleted User]

Dear danser,

I'm a Lambeth leaseholder too, many sympathies!

When will the work happen? There are some stages that they go through
1, mentioning 'anticipated works' in a letter
2, consulting on the works
3, issuing a 'section 20 notice' which means the consultation is over and the price decided
4, sending you a bill for works actually happening this financial year, along with your service charge.

When do you have to pay? My understanding:
1, if you pay in the same financial year, you get a 5% discount.
2, or you can take out a 2 years interest free repayment plan with lambeth.

If you aren't sure about the 'when' question, the works plans for your area may help https://housingmanagement.lambeth.gov.uk/lhs
or email homeownership@lambeth.gov.uk.