Decent Homes
Factsheet - ‘Decent Homes’ - Implications for
leaseholders
What is ‘Decent Homes’?
‘Decent Homes’ is the Government‘s target to ensure that all social
housing meets their standards of decency by 2010.
What is a ‘decent’ home?
A ‘decent’ home must:-
a, meet the current legal minimum standard for
housing;
b, be in a reasonable state of repair;
c, have reasonably modern facilities and services
and;
d, provide a reasonable degree of thermal comfort
(warmth)
How do we decide whether a home meets the ‘decent’
requirements?
The current legal minimum standard for housing; - homes that are
below the minimum standard are those that are defined as ‘unfit’
under section 604 of the Housing act 1985 (as amended by the 1989
Local Government and Housing Act). An example would be where a
property does not have any running water, heating or a kitchen or
bathroom or is damp.
A reasonable state of repair:- a home will not be in a reasonable
state of repair if either;
One or more key building components (such as the roof or windows)
are old and because of their condition, need replacing or major
repair; or
Two or more of the other building components (such as suitable
kitchen, bathroom or heating system) are old and because of their
condition, need replacing or major repair.
Reasonably modern facilities and services:- a home will fail this
requirement if it does not have three of the following:-
• A reasonably modern kitchen (less than 20 years
old)
• A kitchen with adequate space and layout
• A reasonably modern bathroom (less than 30
years old)
• An appropriately located bathroom and WC
• Adequate insulation against external noise
(where external noise is a problem)
• Adequate size and layout of common areas for
blocks of flats
Reasonable degree of thermal comfort:- a home will fail this
requirement if it does not have both effective insulation and
efficient heating.
What works do we have planned?
We are continuing our ‘safe and warm’ programme of works, replacing
roofs and windows that need (or will soon need) substantial
repairs, installing central heating carrying out insulation works
and external refurbishment.
How will this affect leaseholders?
Parts of the structure of each block of flats such as the roof,
chimneys, external walls, rainwater pipes and window frames are
classed as ‘Reserved parts’ of the block, in the lease.
Under the terms of their leases, leaseholders are required to pay
their share of any costs we incur in carrying out work to ‘Reserved
parts’ of the block. This means that some leaseholders may receive
substantial service charge invoices for their share of works we
carry out to their block.
Examples of typical
costs
The following examples are service charges that we have invoiced
some leaseholders over the past year or so;
• Window renewal – £2,981
• Roof renewal (including replacement of
rainwater goods) – £6,585
• General external refurbishment (roofs, windows,
brick & concrete repairs, external insulation, balcony asphalt,
asbestos removal ) – £15,484
How can leaseholders pay such large bills?
We understand that large bills cause great concern. In order to
help leaseholders, we can agree a variety of payment arrangements.
Our ‘Information for leaseholders –ways you can pay for major works
charges’ gives information about the various methods available. We
send a copy of the payment option information sheet with all of the
major works bills we send out. If you would like us to send you a
copy please contact the Right to Buy and Leasehold Services team
through Ascham Direct, on 020 8496 4197.
Although large service charge bills will be worrying, it is worth
remembering that flats bought under the Right to Buy are sold at a
discount off the market value. This means that many flats will have
substantial equity (the value of the property that is not tied to a
mortgage).
It is also worth remembering that the works we carry out will
improve the condition and the value of the property. Because of
these two factors, most banks and building societies are willing to
grant further advances to people who have mortgages with them
(depending on their financial circumstances), in order to meet the
cost of the works.
Where leaseholders are unable to get help from their bank or
building society, we can arrange service charge loans through the
Council. For leaseholders on Income Support or who receive Pension
Credit, we can arrange ‘Interest-only’ loans. ‘Interest-only’ loans
are loans for which only the interest on the loan has to be paid
each month. For leaseholders on Income Support or receiving Pension
Credit, the Benefits Agency or the Pension Service will normally
pay the interest. The loan itself is registered as a charge against
the property and doesn’t have to be repaid to the Council until the
property is eventually sold or transferred to a new
leaseholder.
How soon do we bill service charges for major
works?
Until recently we haven’t calculated service charges until either
the contract final account has been agreed with the contractor or
for more recent schemes, when an estimated final account has been
prepared. Estimated final accounts are judged to be 97% accurate
and allow us to bill leaseholders for their share of the costs
while negotiations continue with the contractor to agree the final
account. This may take several months.
If we bill leaseholders based on information in an estimated final
account, we re-calculate service charges when the agreed final
account is available. If the bills we sent leaseholders based on
the estimated final account were too high, we will credit their
accounts with the difference. Similarly, if the bill based on the
estimated account was too low, we have to send an additional
invoice.
Estimated final accounts are normally available 3 months after
‘practical completion’ of the contract, which is the day that we
agree that the contractor can leave the site, after any ‘snagging’
work has been done.
Since February 2005 we have been billing leaseholders at the start
of contracts. When we do this, we offer leaseholders the option of
interest-free monthly instalments towards the cost of the works
from the time that we send the bill until the time final account
has been prepared and the actual costs are known. This should,
depending on the amount of the monthly payment, substantially
reduce the amount due from leaseholders at the end of the
contract.
How much notice will you get before we carry out major
works?
Before we carry out any works, whether as part of routine
maintenance or as part of our Decent Homes programme, where any
leaseholder’s share of the cost is likely to be more than £250, we
will send you a ‘Notice of Intention to carry out works’. This is
one of the new legal ‘Section 20’ consultation notices.
If we are going to carry out ‘Decent Homes’ work, we will normally
hold consultation meetings with tenants and leaseholders to discuss
the works, before we send the Notice of Intention. During the
consultation meetings you will have the opportunity to give us your
comments about the proposed works so that we can take these into
account when finalising the work specification. We will also send
you newsletters to keep you informed and to give you contact
details for people you can contact for more information.
Unfortunately, because the Council has a duty as landlord of the
buildings, to keep them in a reasonable state of repair and to
repair, renew or improve damaged parts as required and because we
are managing the buildings on behalf of the Council, there will be
some works that we will not be able to take out of the
specification regardless of residents’ comments.
New Section 20 Consultation notices
The number of notices we have to send you will depend on the type
of contract we have with the contractor.
If we are going to carry out the works under a long-term
‘partnering’ agreement you will be sent a ‘Notice of Intention to
carry out works under a long term agreement’. This Notice will give
you a description of the works to be carried out and the reason(s)
why we feel the works are necessary. The Notice will also tell you
where you can view contract details, give you 30 days to let us
have your comments on the works and will give you an estimate of
the cost of the works.
Because the works are going to be carried out under a long term
partnering agreement you will not be given the opportunity to
nominate a contractor.
If the works are not going to be carried out under a long-term
partnering agreement you will be sent two separate Notices. The
first Notice will be a ‘Notice of Intention to carry out works’.
This Notice will describe the works to be carried out and the
reasons why we feel the works are necessary. The Notice will also
give you the opportunity to nominate a contractor you think we
should invite to tender for the works, details of where you can
view the contract specification and will give you a consultation
period of 30 days to let us have your comments.
After the consultation period of 30 days has ended, we will prepare
some proposals from the contractors’ tender returns. When we have
done this, we will send you a second Notice called a ‘Notice of
Proposals to carry out works’. This is a statement telling you
about the estimates we have received. The Notice will give you
details of where you can view the estimates, will tell you where
you can read a summary of observations received in reply to the
first Notice and a summary of our replies to those observations.
The Notice will give you another 30 day ‘consultation period’ to
let us have your comments on the proposals.
If you would like more information about the new Section 20
consultation procedures, the Association of London Government and
LEASE (the Leasehold Advisory Service) have jointly produced an
information booklet called,
‘S.20 - Commonhold and Leasehold Reform Act 2002, Consultation for
Council and other public sector landlords.’
Individual copies of the booklet are available free of charge from
LEASE, whose
contact details are as follows;
LEASE,
31 Worship Street
London
EC2A 2DX Phone:
020 7374 5380
E-mail: info@lease-advice.org Website: http://www.lease-advice.org/
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