Legal information on Right to Buy

The following information is for solicitors acting on behalf of tenants purchasing under the Right to Buy scheme.

Mutual enforceability clause

We do not have a mutual enforceability clause in the lease because of our obligations as a housing authority.

Not including the clause allows us to carry out our estates management functions as a landlord and statutory housing authority freely.

Our form of lease complies fully with the Housing Act 1985 and has been approved by the Land Registry and major lenders.

Landscaping fee

On conveying a property, schedule 6 of the Housing Act 1985 allows the council to include any Right to Buy grant, conveyance covenants or conditions that are reasonable in the circumstances.

In every Right to Buy sale there is a one-off landscaping fee to discharge any future liabilities under the covenant to maintain the landscape within the housing area.

The charge is based on the sum required to service the annual cost of providing landscaping and amenity cleansing in the property's housing area. Landscaping is not maintained at public expense.

The council’s housing revenue account bears this cost. All payments are placed in a perpetuity fund for the dedicated purpose of landscaping. Charges are reviewed and agreed by councillors.

The landscaping fees are essential to the right to buy transaction and are included in the s.125 offer notice made to the applicant.

Section 156 (2) of the Housing Act 1985 applies, whereby an approved lending institution will have priority for any legal charge securing an amount advanced to enable the Right to Buy. An approved lending institution, therefore, has statutory protection over this part of any advance.

Certificates for windows, gas and electricity

We do not have copies of property specific FENSA certificates.You will need to visit the FENSA website to get a copy

We have ownership of windows installed in leasehold properties.

Copies of gas certificates and electrical certificates will have been provided to the tenant at the time of inspection.

Leaseholder buildings insurance

The leaseholder policy is a block policy underwritten by Zurich Insurance in the council’s name. You can get more information on leaseholder buildings insurance

There is no provision within the policy to record details of individual properties. However, the interest of the purchasers of properties sold under the provisions of any of the various housing acts and of their lenders are admitted under the policy.

The policy is renewable on 1 April each year. Premiums are paid by the council at that time and are recharged to leaseholders as part of their service charges.

The policy is not index linked but the sum insured is regularly reviewed and amended as necessary. In the event of a claim, the property is insured for its full reinstatement value, subject to the terms, conditions and exceptions of the policy.

Policy coverage is restricted when the property is unoccupied for a period of more than 30 days.

Deed of postponement

Further advances must be for an approved purpose under the provisions of Section 156 of the Housing Act 1985 (as amended).

A request for a postponement of charge must be made through a mortgage provider or legal representative. The request must be accompanied by evidence of the reason why it is being requested.

If the request is made during the Right to Buy process, a letter of postponement will be issued. If made within the 5-year discount repayment period, after completing the Right to Buy, a deed of postponement will be required.

Requests made in respect of works to the dwelling will only be approved if the works preserve or enhance the fabric of the building and its value. This will include works that are necessary to maintain the structure, weather tightness or safety of the property. This will not include the cost of things like landscaping, gardening, decorating, new carpets, flooring or soft furnishings.

You will need to provide the following information when requesting a postponement of charge:

• the property address and ownership details
• confirmation of the outstanding balance on the mortgage and any other loans secured by a superior charge, and details of the lenders
• the amount of the additional borrowing proposed, the reason for it, and evidence of a loan offer
• a current valuation of the property - we may need a valuation carried out by a qualified chartered surveyor (FRICS or MRICS)
• payment of a fee to cover the council’s administration costs in processing the application, which may vary depending on the amount of work involved and we will not refund this fee if we do not grant consent

Where the request relates to the cost of works to the dwelling, the following may also be required:

• at least 2 quotations for the cost of the intended works
• the quotations must be from reputable contractors provide on their letterhead and include VAT
• the quotations must contain sufficient detail of the works and a breakdown of associated costs so that we can gauge whether the intended works are reasonable, realistic and proportionate when considering the amount of any additional finance to be secured through an additional preferential charge, and by reference to the value of or equity in the property

We can only consider the request once we have all the information needed. Timescales may vary depending on the information required, when it is provided and the complexity of the assessment that needs to be made. Please factor this into any timetables you may be working to and ensure you make your request and provide the required information in good time.

We may make our consent conditional upon undertaking the works within a reasonable period, and providing evidence of completion and of the costs actually incurred. If this applies to you, you will be advised of the council’s requirements as part of the application process.

It is your responsibility to determine whether the proposed works require planning, building control or any other permissions or consent. Where that is the case, separate applications should be made to the council (or other relevant authority). The council’s agreement to postpone its charge may be given subject to demonstrating that all of the necessary consents are in place.