Leaseholder Purchase

When you purchase your flat or maisonette, you become a leaseholder and become liable to pay a service charge. This is to cover repairs and maintenance and any services provided to the block of flats, including any lighting, caretaker services, and, in multi-storey blocks, lift maintenance, etc.

As you may be a first-time buyer under the Right To Buy scheme, you need to know about all your obligations and rights contained within the clauses of your lease. As a leaseholder of a flat or maisonette, you will have a lease for up to 125 years.

In accepting the terms and conditions of your lease when you purchase your flat or maisonette, you are legally obliged to pay service charges.

1. What am I Paying For?

• Apart from your monthly mortgage, if appropriate, as a leaseholder you will have to pay:
• A ground rent of £10 per annum
• An annual service charge to cover repairs and maintenance and any services provided to the block of flats, including a maintenance/administration fee and a building insurance premium
• Your share of future major building works

2. Notification of Service Charges

When you are notified of the selling price of your flat or maisonette, you will be given a schedule/list headed ‘Schedule to Section 125 Notice’. It will provide you with details of the estimated annual cost of the service and maintenance of your flat and block and will usually remain fixed for the first five years of the lease. It will also indicate estimates for major works which may be planned over the next five years for which, if they are carried out, you will have to pay an additional contribution.

3. When and How Do I Pay?

After the completion of the purchase of your flat or maisonette, you will be sent an invoice for the service charge every three months. This invoice is based on the estimate and is payable in advance.

4. Actual Cost for the Five-year Period/Annual Period

An account is prepared at the end of the first five-year period and the on annually thereafter, from the date of commencement of the lease. This is called a settlement account. The Council will gather together the actual charges incurred and offset them against the amounts paid by you by way of service charges. You will receive a statement which will show if you owe the council any money or are due a refund.

5. What Happens If I Sell My Flat During the Five Year Period?

You will be entitled to a settlement account based on the time for which you were the legal owner. Any part of the year is charged pro-rata on the same basis as in paragraph 4 above.

6. Repairs and Maintenance - Who Does What?

Basically, the inside of your flat or maisonette and any service pipes, cables, etc, are your responsibility. The Council is responsible for any communal areas such as corridors, landings, stairwells, common entrance doors and shared water facilities. We cover the cost in the service charge.

Further Information

There is a Leaseholder's Handbook that can be downloaded or for further information please contact:

Vicky Lodge

Swindon Borough Council
Housing
Wat Tyler East
Beckhampton Street
Swindon
SN1 2JH

Tel: 01793 463446 or email: vlodge@swindon.gov.uk

Leaseholders Link - a new way to have your say

As a leaseholder, your home will be within a block of flats managed by Swindon Borough Council. You may have an interest in the services that you receive from Housing ... and we would like to hear from you!

Leaseholders Link is a new forum providing a great opportunity for you to do this, as well as meet other Housing leaseholders and staff to discuss and share ideas.

For further information, please download the Leaseholder Link leaflet or contact: Paul Wilkins, Housing Participation Officer on Swindon 463677.