Issue - meetings

This report provides Cabinet with an overview of recent changes in legislation relating to leasehold management and how these impact on leaseholders in Brent.  The report also outlines both a new and improved existing offer for leaseholders when they receive service charges/major works bills from the Council designed to increase repayment options and flexibility taking account of the current economic landscape.

Cabinet RESOLVED:

1)          To extend the interest free periods in respect of major works for resident leaseholders from 2 years (currently) to 5 years.

2)          To agree the repayment offer as set out in section 8 of the report.

3)          To promote the option to all resident leaseholders (in those blocks scheduled for major works as set out in 5.1 of the report) for the Council to ‘Buy Back’ their home at market value (reduced to 75% of market value, if they choose to become secure tenants), and for non-resident leaseholders of those same blocks to have the option for the Council to buy back their leasehold property at 100% of the market value.

Councillor Knight (Cabinet Member for Housing, Homelessness and Renters Security) introduced a report providing an overview of recent changes in legislation relating to leasehold management and how these were expected to impact on leaseholders in Brent.  The report also outlined both a new and improved existing offer for leaseholders when they received service charges/major works bills from the Council designed to increase repayment options and flexibility taking account of current economic pressures and challenges.

In considering the report, Cabinet noted the details of the current offer available to leaseholders and proposed new offer, as detailed in section 8 and Appendix 1 of the report, the development of which had been subject to an extensive benchmarking exercise with other local authorities.  The results of the benchmarking, which had been detailed within section 7 and Appendix 2 of the report, had demonstrated that the proposed offer would ensure Brent remained competitive when compared with other London Boroughs, whilst ensuring that payment terms were updated to provide the best options available enabling leaseholders to benefit from necessary improvement, modernisation and energy efficiency works.

In recognising the wider improvements made in relation to the service offer available to leaseholders, members also welcomed the timely nature of the report as a further means of assisting to mitigate the impact of the cost-of-living crisis and in recognition of the challenging position faced by many leaseholders as a result of rising costs for building maintenance, repair and safety works.  The offer outlined within the report was therefore welcomed and supported by members in recognition of the efforts made to provide fair, affordable, manageable and sustainable repayment options aimed at minimising the risk of debt and financial hardship being experienced by leaseholders (often outside of their direct control) and to support them in sustaining their residency, whilst also balancing the need to recover charges as efficiently as possible.

In supporting the approach outlined and efforts being made to enhance the offer available to leaseholders, Cabinet RESOLVED:

(1)    To extend the interest free periods in respect of major works for resident leaseholders from 2 years (currently) to 5 years.

(2)    To agree the repayment offer as set out in section 8 of the report.

(3)    To promote the option to all resident leaseholders (in those blocks scheduled for major works as set out in 5.1 of the report) for the Council to ‘Buy Back’ their home at market value (reduced to 75% of market value, if they choose to become secure tenants), and for non-resident leaseholders of those same blocks to have the option for the Council to buy back their leasehold property at 100% of the market value.