Leaseholder responsibilities

Leaseholder responsibilities

27/12/2007

Principally, these will be the requirements to keep the inside of the property in good order, to pay (on time) a share of the costs of maintaining and running the building and common parts, to behave in a neighbourly manner and not to do certain things without the landlord's consent, for example, make alterations or sublet.

The landlord has an obligation to ensure that the leaseholder complies with such responsibilities for the good of all the other leaseholders.

These rights and responsibilities will be set out in your lease.

Service Charges
The Lease will specify items for which a service charge can be demanded. The law defines service charge as an amount payable in respect of services, repairs, maintenance, insurance or management costs and which varies in accordance with the changes in cost to Accent Nene in respect of these matters.

The landlord can only recover those costs which are reasonable. Leaseholders have powerful rights to challenge service charges they feel are unreasonable at the Leasehold Valuation Tribunal (LVT).

Depending on whether you live in a house, bungalow or flat the details of the lease and the management of the building and scheme will vary.

Ground Rent
Because leasehold is a tenancy, it is subject to the payment of a rent (which may be nominal) to the landlord. Ground rent is a specific requirement of the lease and must be paid on the due date, subject to the issue of a formal and specific demand by the landlord

Reserve funds
For many there is special provision in the lease for a reserve fund or sinking fund which Accent Nene hopes will even out the cost of major works. These are large expenditure items which occur irregularly such as major repairs to such as roofs, window frames, car parks and driveways.

Accent Nene will consult all leaseholders before carrying out Major Works. You will be given the chance to see estimates of the costs and your views will be taken into account before any work is begun. This arrangement ensures that both your home and the development will be kept in good condition.

Management charge
This covers the costs of dealing with matters relating to you and your property and is reviewed annually according to the terms of your lease

Buildings Insurance Premium
Accent Nene arranges building insurance; you make a monthly payment to cover the premium for your home. There is a £100.00 excess. You have to arrange your own contents insurance.

What happens if the leaseholder doesn't pay?
It is the leaseholder's obligation to pay the service charges and ground rent promptly under the terms of the lease. If they are not paid and the landlord is able to satisfy an LVT that the charges are properly due and reasonable, then he can begin forfeiture proceedings by applying for a court order. The court has wide discretion where forfeiture is concerned, but if forfeiture is approved by a court, this can lead to the landlord repossessing the property.

The landlord may also seek a county court judgment for payment.