1.0 Introduction
1.1 The objective of this Policy is to set the general parameters for how Norwich City Council will interpret all its policies when applying them to leaseholders who receive some form of service from us. This Policy is predominantly intended for leaseholders, but where we provide some services to freeholder’s relevant parts will apply.
1.2 This Policy is an overview statement, supported by policies, either particular to home ownership customers, or general policies for Norwich City Council. Where there’s any inconsistency between this Policy and any other Policy, the parameters of this Policy should be applied. The way forward must comply with:
- Prevailing legislation, including binding tribunal cases or general case law
- The lease or other contractual document
- Regulatory guidance and good practice.
1.3 The Home Ownership Team’s aim is to always provide a professional level of service which meets our customers’ needs in the management of their homes.
1.4 The terms ‘you’ and ‘your’ in this Policy means leaseholders. The terms ‘we’, ‘our’, and ‘us’ mean Norwich City Council.
2.0 General
2.1 Norwich City Council will always act in accordance with the lease. Where the lease has any defects, we will seek to remedy these where Any rectification will be drafted to be as fair as possible to all and allow for the proper and sustainable management of the property/properties, block, estate and or area. Critically, wherever possible, this must include ensuring the services needed will cover the cost of their provision, oversight, and ongoing management.
2.2 Your lease outlines the responsibilities you must comply with.
We will seek to manage our blocks and estates:
- In line with leases and/or other contractual requirements
- For the benefit of the residents
- In line with legal/regulatory requirements and Government policies, including health and safety requirements
- Providing value for money.
2.3 We will provide property management and related services in accordance with relevant legislation and good practice. We will take appropriate and proportionate action to ensure all relevant parties comply with the terms of the lease. Where appropriate, explain the grounds under which we may take legal action including to bring the lease to an end.
2.4 We will always seek to provide good value for money for all our services. Where these services are provided by third-party contractors, they will be procured in a competitive way.
2.5 Where we are providing services, we’ll seek, as a minimum, to cover the cost of those services. This could include requesting you make payments before we provide any services and/or requiring an undertaking that our costs will be covered.
2.6 In dealing with leaseholders, particularly those suffering some hardship, we may adapt our approach on a case-by-case basis. This may include offering extended periods to repay service charges, including those related to major works. The offer of such concessions will not extend to non-resident leaseholders or buy to let investors unless there are very exceptional circumstances.
2. Where we need to take action to enforce leaseholders’ or other property owners’ covenants, we will seek to recover all costs of having to take such action. This may include charging an administration fee for the work required by Norwich City Council. This could, for example, involve the cost of gaining access to a property and undertaking a necessary repair a leaseholder is either unwilling or unable to do.
2.8 When it comes to matters affecting the safety of the block or others, we’ll take action based on our best assessment of the facts and the advice of relevant authorities and/or appropriate professionals and consultants. We’ll take the strongest action available to make the leaseholder comply, and/or undertake the work directly if possible and appropriate. All costs will be sought from the leaseholder unless we’re able to recover these from a third-party.
3.0 Service charge collection
3.1 We will provide our leaseholders with a variety of payment options and encourage payment by direct debit.
3.2 We will request payment in accordance with relevant Landlord and Tenant legislation including sending:
- ‘Service Charges - summary of tenants’ rights and obligations’ when seeking payment for service charges.
- Notice under section 166 Commonhold and Leasehold Reform Act 2002 when seeking payment of the ground rent. (This is currently included in the annual service charge statement to reduce administration costs).
3.3 If an account goes into arrears, we’ll take appropriate action to recover those arrears, which could include contacting the leaseholder’s lender.
3.4 Where there is a history of arrears and the where the lease allows, we may charge interest on the outstanding balance. The decision to charge interest will rest with the Home Ownership Manager.
3. In cases of hardship, we will agree to payment of the arrears by instalments, ideally where the regular payments are made by direct debit. Where a leaseholder fails to keep to the agreement, we may levy interest in accordance with the lease terms.
4.0 Possession
4.1 Taking forfeiture proceedings against the Lessee should always be a last resort and will only be pursued by the Council when all attempts to negotiate with the Lessee have not resulted in settlement of the dispute between the council and the Lessee..
4.2 In every case, we will request further information from the Lessee as to the unpaid ground rent, service charges or other breach of covenant contained in the lease between the Council and Lessee. If we are satisfied that a breach of a term of the lease has occurred and no action or insufficient action has been taken to rectify the breach, we will take the appropriate action subject to statutory restrictions contained the Commonhold and Leasehold Reform Act 2002(The Act) and all applicable statutory instruments made under the Act. Where the breach of the lease does not relate to non-payment of rent or service charges, we will serve a notice under section 146 of the Law of Property Act 1925 prior to the issue of forfeiture proceedings.
4.3 Possession proceedings will be authorised by the Home Ownership Manager and Head of Housing, or another senior officer that may be authorised to act in their absence.
4.4 Where a possession order has been obtained, we may accept a surrender by return of keys from the Lessee who wishes to avoid further enforcement action and associated costs. Where eviction action is required, an application to court for a bailiff’s warrant can only be issued after authorisation by the Home Ownership Manager and Head of Housing
4.5 To gain authority to evict a Lessee, a report must be compiled to demonstrate that we have:
- Made a reasonable effort to avoid the need to evict the Lessee.
- Liaised with mortgage lenders (if applicable).
5.0 Major works
5.1 Where necessary, we’ll consult or notify leaseholders before carrying out major works including the formal consultation as required by landlord and tenant legislation. We will always aim to ensure works are reasonable, required, and provide value for money.
5.2 Where a leaseholder is unable to pay immediately and lives in the property, we’ll offer a range of payment options.
6.0 Management fees
6.1 Our management fee covers a proportion of the staffing and office costs of teams whose work directly or indirectly facilitates the delivery of services to leaseholders, blocks, and estates as well as other associated costs as agreed in the Lands Tribunal appeal LRX/114/2007. These will be actual costs incurred and therefore the total management fee recoverable will vary each year.
6.2 We will charge you a percentage of costs and therefore the figure you pay will vary each year depending on the services you have received.
7.0 Leaseholder alterations
7.1 You must obtain permission from us before making changes to your home.
If you make alterations without consent you are likely to be in breach of your lease, which is very serious. If you have already made alterations and are making a retrospective application for permission, this may not be granted. If we wouldn’t have given you consent, we may ask you to reinstate, or do this ourselves and charge you.
7.2 We will not normally grant permission in the following or similar circumstances, where:
- The proposed changes are structural in nature
- They would involve the blocking of light or would cause a blockage to a right of way
- The works would reduce the value of the building
- The works would cause unnecessary and enduring disturbance to neighbours
- The works impact an area of the building or estate owned by Norwich City Council. For example, a request to install solar panels which would affect our maintenance of a roof; or request for a ground floor extension may affect our ability to access, maintain, clean, repair and make replacements at the block
- The works would impact on the safety of your home, for example replacing a fire door with a non-fire door.
7.3 You must get planning permission and building control consents for any works where legally required, prior to works starting. Any costs associated with the changes, including costs incurred by Norwich City Council (whether legal, surveyor, administrative or other e.g. revised risk assessments such as Fire Safety Risk Assessments) must be borne by the leaseholder.
8.0 Buildings insurance
8.1 We will provide block buildings insurance cover for all our leasehold properties. We’ll provide leaseholders with details of the insurance on request. These are usually also available on our website.
8.2 Insurance cover will be determined in accordance with Norwich City Council’s assessment of the appropriate level of cover required. In making this assessment we’ll take many factors into consideration including balancing the premium against the cost of the cover.
8.3 We will seek to ensure we comply with our varying obligations as a landlord when required to arrange buildings insurance. We’ll also seek to ensure our policies are in keeping with good practice for both the insurance and property industries.
9.0 Subletting
9.1 Subletting to a single person or family is permitted under the lease however permission should be sought from the council before doing so. You will be required to provide us with contact details including your phone numbers, email addresses and correspondence address, as well as contact information of any key holders in the event of an emergency.
9.2 Subletting the property as a House of Multiple Occupation (HMO) is not permitted under the terms of the lease. This applies to licensable and non-licensable HMO’s such a ‘student lets’ or similar where the tenancy is for more than one family.
9.2 If you have a mortgage, you will need the consent of your lender to sublet. Our consent to sublet will be conditional on you obtaining this consent and complying with all conditions the lender requires at the point they grant you consent and any subsequent requirements. We may ask you to provide us with evidence you have this consent.
9.3 If you sublet without our permission, and in breach of your lease, we will take appropriate action. This could include legal steps to take possession. This could also invalidate your buildings insurance.
9.4 Short-term letting such as ‘Air BnB’ is considered a breach covenant such as running a business and use of the property as a single private dwelling house, and permission will not be granted.
10.0 Anti-social behaviour
10.1 We will take appropriate action where anti-social behaviour is caused by a leaseholder (or if sublet, their tenant) and there is sufficient evidence to support successful action. This may include working in partnership with the police and relevant local authority departments, and/or legal action for breach of the lease.
10.2 In cases where a leaseholder is complaining about the actions or behaviour of a Norwich City Council tenant and there is sufficient evidence, we’ll take action against the tenant in line with our Anti-Social Behaviour Policy.
10.3 Where the evidence is inconclusive and unlikely to result in successful legal action, we’ll signpost leaseholders to other options e.g., mediation, independent legal advice.
11.0 Collective enfranchisement and lease extension
11.1 In accordance with your statutory rights, leaseholders have the right to extend their lease when certain criteria are met.
11.2 Leaseholders are usually liable for all costs associated with an application for a lease extension or freehold purchase, whether or not the transaction is concluded.
11.3 Leaseholders will be provided with information as to their options but must not be provided with advice (legal or otherwise) as to whether or how to proceed.
11.4 Further information can be found in our Lease Extension Policy.
12.0 Lease variation
12.1 We will carry out lease variations when appropriate, in particular when a lease fails to make satisfactory provision for a matter outlined in section 35 of the Landlord and Tenant Act 1987.
12.2 Where you request a variation, if we agree to the variation, all costs will be covered by you.
12.3 Where appropriate and possible, we shall seek to vary lease terms by mutual consent; otherwise, applications to the First-tier Tribunal (Property Chamber) shall be made.
12.4 Any variation requested by a leaseholder that diminishes a right of Norwich City Council reserved in the lease will only be granted on payment of a premium. Payment of any premium will be in addition to costs and charges made to process a request to vary.
13.0 Right to Buy
13.1 We will comply with all legislative requirements in processing applications for the Right to Buy. All applications will be processed in an efficient manner.
14.0 Recovery of legal costs
14.1 We may incur legal costs due to litigation via the courts or tribunals (whether in-house or via external advisors). We’ll seek to recover costs from the applicants or the respondent, where the law and/or the lease provides for this. Where appropriate, concessions will be made. We also reserve the right to pass on the cost of any legal action aimed at protecting your interest.
15.0 Leaseholder involvement and participation
15.1 We will provide opportunities for residential leaseholders to scrutinise and influence our services, via Recognised Tenants’ Associations (RTA’s)
16.0 Recognised Tenants’ Association (RTAs)
16.1 We will acknowledge RTAs which have sought our recognition and meet published guidance on recognition of RTAs.
16.2 We will look to work with formally constituted groups for a block or estate which cannot be recognised under the relevant legislation; where:
- The group has a formal constitution
- The group has a formal procedure for membership
- The officers of the group have been democratically elected
- Group membership is significant in number for the size of the block/estate it has been set up for.
16.3 Regardless of whether a resident group is recognised or not, we will seek to work co-operatively with the group where:
- It’s clear the group is representative of the leaseholders
- There is a desire to have mutually beneficial engagement.
16.4 We expect all groups to be inclusive, respect diversity and act reasonable in their contact with us.
17.0 Leaseholder consultation
17.1 Where necessary, we will undertake necessary consultation in accordance with section 20 of the Landlord and Tenant Act 1985 (as amended).
18.0 Site inspections
18.1 We will make regular visits to the blocks and estates we manage directly. The frequency of the visits will depend on several factors including proximity to our offices and the size of the development. These inspections will principally be to make sure the block and estate are properly maintained in accordance with the service contracts in place.
18.2 During inspections, council officers should pick up obvious breaches of covenants or issues, (particularly those with health and safety implications). They’ll also make sure any repair matters are picked up and addressed.
18.3 These general inspections are supplementary to Norwich City Council’s more formal health and safety inspections in accordance with the Health and Safety Policy.
19.0 Alternative accommodation
19.1 If a leaseholder needs to vacate their property (most likely to allow for works to be done), the leaseholder is usually responsible for finding and funding their own alternative accommodation.
19.2 Should the need to vacate a property be because of an insured peril, the building insurance may cover the cost of alternative accommodation. You should deal with all matters directly. If you have difficulties dealing with such matters, we may assist in exceptional circumstances.
20.0 Equality, diversity & inclusion
20.1 Norwich City Council, staff, partners, stakeholders, and contractors are committed to providing services that are relevant and appropriate to the needs of people. We will treat others fairly and without discrimination. Refer to our Equality, Diversity and Inclusion (EDI) Statement for more details.
21.0 Monitoring and review
21.1 We will review this Policy to address legislative, regulatory, best practice or operational issues, otherwise every 3 years.
Published: 5 May 2024
Next review date: May 2027
