Agenda item

Cabinet considered a report that sought approval to make changes to the standard Right to Buy lease in order to support housing management policies and to simplify the calculation of management fees.

Prior to consideration of the report a deputation in opposition to the proposals was received from Ms Lynne Zilkha on behalf of the Haringey Leaseholders Campaign Group (HLCG) Committee.

Ms Zilkha noted that as leaseholders she and members of HLCG Committee had concerns regarding the Council’s future management of leasehold properties. She contended that the Council had existing powers to enforce the conditions of leases and that further clauses and regulations were not required.

Ms Zilkha questioned whether the Council was legally able to make new clauses and regulations to the existing lease and noted that schedule 5 of the current lease ‘Regulations and Restrictions’ already listed restrictions placed on leaseholders. She went on to refer to legal challenges brought against other Local Authorities in London by leaseholders and argued that the outcome of these demonstrated that the proposed clauses and regulations were not lawful and requested that the advice from Counsel, received by the Council, was shared with leaseholders.

In conclusion Ms Zilkha contended that the proposed clauses and regulations were unnecessary and that they would place an unacceptable financial burden on leaseholders.

The Cabinet Member for Housing responded to Ms Zilkha’s deputation. It was noted that the new regulations related to works that would improve the safety and security of buildings. Measures such as the introduction of a sinking fund, which would be used to meet the cost of future major works, would prevent leaseholders being presented with large bills. With regard to concerns expressed around the legality of the proposals the Cabinet Member noted that advice had been obtained from Counsel in the drafting of the report.

The Head of Legal Services advised that no changes were being made to the existing clauses within the lease. As the report set out the Council was permitted to make additional clauses to the lease as proposed.

It was noted that legal advice requested and received was provided to the client, in this instance the Council, on a confidential basis and that it was not usual to share this with a third party.

RESOLVED:

1. That the following proposals detailed in sections 5.2, 5.3, 5.4 and 5.5 of the report be approved, subject tothe final wording of the clauses and regulations set out in (ii) and (iii) below being agreed by the Director of Adult and Housing services in consultation with the Head of Legal Servicesand the Cabinet Member Housing:

2. New clauses in the standard Right to Buy Lease for all new leaseholders regarding:

3. New regulations for all leaseholders concerning:

Alternative Options Considered

The consideration of other options was not relevant in this context.

Reasons for Decision

The Government’s increase of the Right to Buy discount is likely to lead to an increase in the sale of Council flats. In addition there is an increasing trend for leaseholders to sublet their properties. These factors require additional regulations to enable the Council as the landlord to make leaseholders more aware of their responsibilities both before and after they purchase their properties.