Leasehold Management Policy

1.   POLICY PURPOSE

1.1   The purpose of this document is to provide the general policy on leasehold matters, setting out the values, principles and aims that will be followed by One Manchester in its relations with leaseholders. The policy has been written taking into consideration our strategic plan along with statutory legislation relating to the management of leasehold properties and good practice.

2.  POLICY SCOPE

2.1    This policy applies to all leasehold properties owned and managed by One Manchester Reference in this policy to “leasehold properties” includes properties where a shared ownership lease has been granted and reference to “leaseholder” includes reference to shared ownership leaseholder. The policy specifies if something is relevant to only shared ownership leaseholders.

2.2   The Lease takes precedence in all leasehold management (subject to statutory provisions otherwise) and should always be considered. The Lease is a private contract between the Landlord (often known as the ‘Lessor’) and the Leaseholder (often known as the ‘Lessee’) and sets out the rights and responsibilities of both parties.  The Lease will include information regarding: 

·       A description of the premises including a site plan clearly marking the property along with any vehicle parking 

·       The rights and responsibilities of the Lessor and the Lessee in respect to the dwelling, the structure and the common parts

·       Repairing obligations of both the Lessor and the Lessee

·       The broad items to be included in the service charge, what can be charged, how it is calculated, apportioned and when payment is due including penalties for late or non-payment

·       Responsibilities for insuring the property

·       The process for transfer of ownership (assignment including selling)

·       The process for ‘Staircasing’ (acquiring additional equity in a shared ownership property)

·       How the lease can be ended (Forfeiture).

3.  RELEVANT LEGISLATION & REGULATION

3.1    This policy has been written in accordance with relevant guidance and legislation, which includes:

·       Law of Property Act 1925

·       Leasehold Reform Act 1967

·       Landlord & Tenant Act 1985 & 1987 

·       The Leasehold Reform, Housing and Urban Development Act 1993

·       Commonhold and Leasehold Reform Act 2002

·       RICS – Service Charge Residential Management Code (3rd Edition – 2016) (but only applicable where building does not include any social housing properties)

·       Building Safety Act 2022.

4.  POLICY STATEMENT

4.1   We will refer to the lease and let it take precedence in all leasehold matters (unless legislation overrides this).

4.2   We will comply with all relevant statutory obligations governing leasehold management matters. There may be additional statutory obligations where the lease was granted pursuant to the right to buy or preserved right to buy or where the property is in a building that is a ‘relevant building’ as defined in the Building Safety Act 2022.

4.3   We will carry out a thorough investigation if we are made aware of a breach of lease and take appropriate action.

4.4   We will treat forfeiture proceedings as the last resort and pursue where there clear deliberate failure to pay service charges or ground rent is apparent or where there is a serious and demonstrable breach of the Lease.

4.5   We allow subletting providing the lease allows and we are informed along with any mortgage lender (if applicable) in advance of commencement.

4.6   We will promote involvement opportunities to all Leaseholders via One Manchester deemed contact channels.

4.7   We will strive to achieve value for money in the delivery of this policy in conjunction with One Manchester’s value for money strategy.

4.8   We will ensure that service charge costs reflect the cost of services provided and that those costs are reasonable incurred in the provision of services and that services are delivered to a reasonable standard.

4.9   We will seek to recover 100% of the costs of providing services through the collection of service charges.

4.10  Serve notices required by legislation and the lease for the valid demand and recovery of rent, service charge and any administration charge.

4.11  We will handle all complaints in line with One Manchester’s complaints policy.

4.12  We will make available to all prospective leaseholders’ information about their rights, responsibilities and obligations before they purchase the property. Leaseholders will also be encouraged to take independent legal advice about their purchase and their obligations and rights as a leaseholder. 

4.13  We will be supportive of leaseholders wishing to improve their homes providing necessary consents are obtained, leaseholders comply with all building regulations requirements, and this does not impact negatively upon either One Manchester or other occupiers in the building. Leaseholders are required under the terms of their lease to obtain One Manchester consent to make some alterations or improvements.

4.14  We may charge an administration charge for services provided to an individual Leaseholder that are not contained within the Lease.

4.15  We will comply with all statutory legislation in our dealings with leaseholders.

4.16  We may enter into voluntary arrangements to grant lease extensions for leaseholders of flats and in respect of enfranchisement for leaseholders of houses. We will mirror the processes set out in the legislation when offering voluntary arrangements.

5.  METHOD AND APPROACH

5.1  One Manchester aims to offer a professional and cost-effective service taking into consideration the provisions of lease. 

5.2  We will refer to the lease and let it take precedence in all leasehold matters (unless legislation overrides this).

5.3   This policy should be read in conjunction with the procedures and guidance notes and the following complimentary policies:

·     Income and Debt Recovery Policy 

·     Complaints Policy

·     Rent and Service Charge Policy

·     Anti money laundering Policy

·     Data Protection Policy 

·     Reasonable Adjustment Policy

6.  RESPONSIBILITIES

6.1   The Sales and Commercial Manager is responsible for the review and update of this document.

6.2   The Sales and Commercial Manager is responsible for monitoring the implementation of this policy.

7.   EQUALITY, DIVERSITY AND INCLUSION STATEMENT  

7.1    One Manchester promotes a diverse and inclusive environment for our customers and colleagues to thrive. We are  committed  to  enhancing  a  culture  that  respects  individuals, appreciates  difference  and  allows  everyone  regardless  of  background  to  reach their  full  potential.

7.2   We accept our responsibility to comply with equalities legislation and regulatory requirements and aim to do more. We believe everyone requires access to the same opportunities. Through our behaviours,  we aim to challenge and remove systemic barriers to equal opportunities and reduce the likelihood of all forms of discrimination, harassment, and victimisation within our organisation and our communities.

7.3   We are committed to providing excellent customer services, which are fair, equitable and inclusive. As such, we will endeavour to understand and make any reasonable adjustments required for customers in line with One Manchester’s  Reasonable Adjustment Statement, and Reasonable Adjustment Policy and the Equality Act 2010

8.  EQUALITY IMPACT ASSESSMENT

8.1   An Equality Impact Assessment (EqIA) has been completed and assessed.

8.2  An Equality Impact Assessment (EqIA) has been completed and assessed.  We do not require a full assessment as the policy is direct and supported by legislation. The EqIA found that the policy has the potential to impact various protected characteristic groups positively by promoting inclusivity and ensuring compliance with equalities legislation.

8.3  There is potential for leaseholders to be impacted negatively if they were to misunderstand matters, i.e. if the information required was not in the correct communication format. However, the policy stipulates OM’s commitment to inclusion so the consideration is imminent.

9.  MONITORING AND REVIEW

9.1   Compliance with this policy shall be monitored by the Sales and Commercial Manager.

9.2   This policy shall be reviewed every 3 years or if further government changes impact this policy.

9.3   The Director of Operations is responsible for interpreting this policy where the provisions are unclear or there is ambiguity. Any interpretation will automatically become incorporated into the policy.

9.4   The Officer or Officers operating the policy in practice are responsible for implementing the policy and interpreting the policy giving the words of the policy their common everyday meaning.

10.  CONTACT PERSON

10.1   The Sales and Commercial Manager has responsibility for the effective delivery of this policy.

11.   ASSOCIATED POLICIES AND DOCUMENTS

11.1    Internal Documents:

·     Income and Debt Recovery Policy 

·     Complaints Policy

·     Rent and Service Charge Policy

·     Anti money laundering Policy

·     Data Protection Policy