Leaseholder
Manage your home with our information for leaseholders.
Leaseholders
Leasehold properties are generally found in purpose-built blocks of flats, converted houses, or above commercial and retail premises. Leasehold ownership could be seen as simply a long tenancy, providing the right to occupy and use the property for a set term.
In the lease, the “demised premises” outlines what is owned by a leaseholder, with the structure and common parts being owned by the freeholder.
Read more about your Residential Leasehold and Shared Ownership Service Offer here.
Key responsibilities
A list of responsibilities will be detailed in the lease that you sign, and there are responsibilities for yourself as the leaseholder, as well as Rooftop as the landlord/freeholder. Typical responsibilities for leaseholders include:
- Paying service charges and ground rent, typically billed annually with monthly payments permitted.
- Repairs to the internal areas of your home, along with any item solely serving your property. This can include wiring or pipework beneath the floorboards or outside of your front door.
As the landlord, Rooftop is responsible for maintenance of the communal areas and external parts, such as the shared hallways and the roof.
In some developments a Management Company may be responsible for delivering some of these communal services on our behalf. If you have a Management Company, you will see their charges set out in you Service Charge breakdown. We manage these services on your behalf, so you’ll only ever need to report any issues to us as you would do normally. To find out more about Management Companies please contact us.
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Service charges
Services charges are put in place by Rooftop to cover the day-to-day costs of managing and maintaining the building.
Leasehold customers can expect to receive their service charge estimate in February of each year, prior to the start of the new financial year in April. As stated within the terms of lease agreements, payment for service charges is due in full, in advance of the financial year.
Our customers are obligated to pay the service charge in full, however where customers are unable to pay the charge one instalment, our customer offer is to split the charge over 12 months via Direct Debit from April to March.
Service charge reconciliations
Customers can expect to receive their service charge reconciliations in September of each year; these relate to the previous financial year. Once the invoice is issued, and if there is a balance to pay, this will be payable within 30 days. If you are unable to pay the invoice within this time frame, you are encouraged to speak to us.
There may be occasions where your account is in credit; if you require a refund, we ask that you contact us to request this. Alternatively, this can remain on your account and can be offset against future charges.
Management Charges
There may be management charge that relate mainly to the administration cost of providing services. These costs include a contribution to the information technology, human resources, facilities and legal services required. The management charge also covers costs involved in calculating, apportioning and billing your service charge, and reconciling your account.
Major works
Rooftop has an obligation to maintain your building, for which the costs will be re-charged back to our customers, in accordance with the lease. When works are necessary, the process starts by Rooftop following a statutory consultation process, known as Section 20. On completion of the works, and once they have been signed off, an invoice will be issued. Where customers have a sufficient balance within their sinking fund, the cost of the works are covered from the sinking fund.
Where there are customers without a sinking fund or who have a shortfall within their fund, we will issue an invoice which will be payable within 30 days. If there are customers who are unable to pay the invoice in full, we may be able to extend the payment terms by up to 24 months.
Lease extensions
A lease is granted for a defined term and, if not extended, will eventually expire and revert to the freeholder (in most instances, us). If the lease term dips below 80 years, the value of the property can drop dramatically. This is where lease extensions come in.
Once you have owned the property for two years or more, you have the right to extend it. The extension provides a further 90 years on the remaining term, and ground rent reduces to nil.
There is a premium payable to Rooftop, as well as solicitor and surveyor fees, which are payable by the leaseholder in accordance with the statute. Please contact us if you'd like to know more.
Deeds of variation
If changes are required to your lease, this can be done via a Deed of Variation. This is a legal document that sets out the amendments to the lease, either by inserting or removing clauses, or make changes to the plan. A solicitor will be required to perform this action, with their fees payable by the leaseholder.
Sales process
The process typically starts once you instruct an estate agent to advertise the property for sale on your behalf.
During the sale process we can assist with the enquiries by preparing a sales pack. This includes detail on the rent and service charges, buildings insurance, planned works etc. A fee may be payable for this service.
Once a sale has been completed, the buyer's solicitor should serve Rooftop with a Notice of Assignment. This states the parties involved, and the date of completion. On receipt of this, we close the vendor’s account, and open one for the buyer.
Consent
Leases typically include clause to restrict various items from being done, either work-related or behaviour. This may completely prohibit something from being done, or may allow it, providing prior consent in writing has been obtained.
Subletting
As a leaseholder you are permitted to sublet your property. However, this must be under an Assured Shorthold Tenancy (AST), and for a minimum term of six months. Airbnb or holiday lets are strictly prohibited.
We would always recommend that you check your lease before agreeing to any let.
Arrears process for homeowners
Your lease is a legal contract between you and Rooftop. Under the lease you have to pay all reasonable charges that we need to manage and maintain your building.
If you refuse to pay your charges you are breaking the contract, and we can go to court to have your lease ‘forfeited’ after a decision by the First Tier Tribunal. If the court decides that you have seriously broken the terms of your lease, it may end the lease and give us possession of your flat. You would lose your home and would not usually get any payment or compensation.
If you have a secured loan on the flat from a bank or building society, we would tell them before we started legal action. As they have a legal interest in the property, they could decide to pay the bill themselves and then take their own legal action against you.
If you have difficulty paying your charges we will always try to help, but if it becomes clear that you are not trying to pay your charges we can:
- apply to a tribunal for a decision that your charges are fair;
- apply to the court for your lease to be forfeited and to repossess your home.
We hope that things never get to this stage, but it does happen, and people do lose their homes.
Tenant Management Organisations
Tenant management organisations (TMO) are organisations that were set up under the UK Government's Housing (Right to Manage) Regulations 1994.
TMOs allow residents of housing association homes to take over responsibility for the running of their homes by providing some or all housing management tasks on behalf of the association.
The association still owns the properties, and all tenants remain tenants of the association.
To take over management, the tenants must set up a properly constituted organisation - a tenant management organisation (TMO). TMO committee members become directors with the responsibilities to run the organisation in accordance with the TMO’s constitution and the law.
Tenants involved in the TMO's process undergo extensive training to develop the necessary skills and competencies required to manage housing and business services.
The association and the TMO then enter into a formal legal agreement, known as the management modular agreement (MMA). The contract outlines the role and responsibilities of the TMO and the association in delivering housing services to the properties under management. Services provided by TMOs are mainly funded by the management fees paid by the association under the agreement.
You can read more in-depth information on Tenant Management Organisations and the Right to Manage your home on the UK Government’s webpage - Right to Manage - The Leasehold Advisory Service (lease-advice.org)
What Rooftop means to me
N Bodie
Tenant
