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Financial Housing Information Leaseholders Leases Major Works Repairs Service Charges

THE LAW

The Landlord and Tenant Act 1985

sets out the basic rules for service charges. It defines what is considered a service charge, and sets out requirements for making sure costs are reasonable. Landlords should consult leaseholders before entering into any agreement for work or services which would lead to a service charge.

The Landlord and Tenant Act 1985 also applies to payments of service charge under a lease whilst a management order is in place under Part II of the Landlord and Tenant Act 1987.

Section 18 (1) of the act defines a service charge as ‘an amount payable by a tenant of a dwelling as part of or in addition to the rent

  • which is payable, directly or indirectly, for services, repairs, maintenance, improvements or insurance or the landlord’s costs of management; and
  • the whole or part of which varies or may vary according to the relevant costs.’

The costs of the services, repairs, maintenance, improvements, insurance and management must be reasonable, and the tribunal may decide whether they are.

Please note: the definition in section 18 (1) does not overrule the lease. The item or service must still be included in the lease for your landlord to be able to charge for it.”

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Councillors Financial Housing ILA Information Islington Islington Council LBI Leaseholders Leases Major Works Service Charges

Massive Rent Increases

Islington Councils latest budget, as usual, is all “Doom and Glum” and continually pointed at the great hole in the  borough’s finances. 

Nevertheless, since the councils main funding stream is basically through council rents and Maintenance bills, their obvious solution is to raise the average Council rents by a whopping great £9.71p per week. This is in order to replenish the Housing Revenue account, and facilitate further mis-running of the borough. 

However, strange though it may seem, whilst the borough is financially struggling to survive, the Council have also re-purchased 389 ex Council flats. It’s not to move islington tenants out of temporary accommodation, such as bed and breakfast, which costs the borough a fortune, but to be used as further…short term accommodation..!

Question, if this borough is having financial problems : – Just how/and from where, did they acquire the money to finance such a massive purchase?

Using a broad brush approach, approximately 389 flats at an average cost of £400.000 each? (and we all know, that in this borough you can’t buy a shoe box for that, much less 2, 3, and 4 bedroom flats) comes to approximately £155.6 million pounds!

Question, If the purchase of these flats involved a grant…how much was it in total?… if a loan, just how much undisclosed debt are we now jointly carrying?…and what % interest are we going to be paying?, to whom, and for how many years to come?. Which of course will be solved, once again, by simply, raising the RENTS and MAINTENANCE bills …Again and Again…

It “Beggars Believe” what both Tenants and Leaseholders of this borough are forking out in order to cover financial mismanagement…

Hopefully, the usual “Smoke and Mirrors” won’t be enough this time around.!!!

Dr Potter

Chairman ILA www.ila.org.uk

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Councillors Financial Housing ILA Islington LBI Leaseholders Leases Major Works Repairs Service Charges

Follow the money!

A simplistic explanation of why we pay so much…!!!

Why are council Rents and Maintenance bills, so inexplicably high? …simple,  …Just follow the money!

The council state that their main funding stream is basically via council rents, and maintenance billing. This is paid into the Housing Revenue Account by tenants, leaseholders, and 4000 absentee landlords…So…

1/ Islington Council issue contracts to maintain the borough’s estates.

2/ The Contractor scopes out the work, price the job, and bill’s the Council for work completed.

3/ The Council (using 33% of the housing Revenue account) pays the tenants contribution. It apportions the remainder between their leaseholders and absentee landlords.

4/ The absentee landlords then recover their cash by raising their rentals.

Who gets this public money?

1/ Builders get paid directly by the council, come what may.

2/ The council simply raise the tenants rents, and present Home owners with a massive bill.

3/ Landlords increase their rental charges to cover their liabilities.

Where does the money wind up!

1/ Contractors reinvest their massive profits in new projects.

2/ Builders simply “rack it in” by piecemeal subbing-out of the fractionated contracts.

3/ Council reduces its gross over spending to appear efficient.

4/ Landlords pay off their Mortgages.

5/ Private tenants reduce their renting costs by flat sharing.

6/ Mortgage lenders always win in the long run, since their investment is inevitably founded in “Bricks and Mortar”. 

All financed from the constant uncontrolled wastage of public money.!

Solution

1/ Council reduces contract sizes

2/ Council stops issuing astronomical bills to pay contracts

3/ Council controls Building and Maintenance costs by bringing building projects “Back in House”…

4/ Council demands total accountability

5/ Council demands value for money

6/ Council accepts “Individual Corporate Responsibility”, as the norm. 

Which is no more than what they’re already being handsomely paid for doing…!!!

Dr Potter…

Chairman ILA… (www.ila.org.uk

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Councillors Financial Housing ILA Islington LBI Leaseholders Major Works Repairs Service Charges

Council asked why are Leaseholders getting huge £72K Bills?

ILA’s Dr Potter asking Islington Council staff Ian Swift and Councillor Una OHalloran at last nights February ILA meeting on 14.02.24 why individual Leaseholders are getting huge bills for £46K and £72K.

Islington Council staff Ian Swift and Councillor Una OHalloran and ILAs Dr Potter at ILA meeting 14.02.24. IMG_5945

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Councillors Cyclical Works Financial Housing ILA Information Islington LBI Leaseholders Major Works PFI Repairs Service Charges

£9million of taxpayers’ money went to ‘offshore tax haven’ through Islington Council’s out-sourced housing deals

From PFI article in ISLINGTON GAZETTE this week

Between 2012 and 2018, JLIF which invested in 65 PFI and Public Private Partnership schemes around the world, had pre-tax profits of £526.1m but paid only paid £2.1m (or 0.4pc) in UK tax. Academic and housing campaigner Stuart Hodkinson, whose 2019 work Safe As Houses scrutinies the “corporate greed” of PFI schemes, estimates the total contract value of PFI 1 is £357m, while PFI 2 is said to be worth £421.3m.

Dr Brian Potter, chair of Islington Leaseholders Association, led a campaign to stop the PFI deals in the early 2000s. He argues offshore or tax haven registered companies profiting from PFI deals, while not illegal, is “unethical” and “insidious”. He said: “This is one of the major problems with selling off contacts. Once you have sold the contract you have no control, so there is no quality control – nobody accepts responsibility for anything wrong with the original contract. You’re just left with a money spinning machine just eating money over the years. It was the worst council financing decision.”

Read the full story here

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Councillors Financial Housing Information Leaseholders Major Works Repairs Website

London Mayor betrays 34 estates over housing ballots

Mayor quietly signs off funding for 34 estates, dodging new ballot rules

At Mayor’s Question Time this week, the Mayor gave me a firm promise not to sign off any new funding for estate demolition while his new policy to require a ballot of residents was out for consultation. But he was concealing the fact he has recently rushed through funding for dozens of controversial schemes, allowing councils and housing associations to dodge his new policy.

The new policy to require ballots was announced on 2 February, with a consultation on the details (such as the size of schemes, who can vote, whether independent organisations should carry them out etc) open until 3 April.

I asked him at MQT this week not to sign off any schemes meanwhile, and he was clear he would not do this, saying: “I will be signing no new funding contracts until the consultation has ended and we’ve published the final guide.”

This seemed quite good. Along with campaigners from many estates across London, and with the support of the Assembly, I’ve been working to change the Mayor’s policy on giving residents a say since his truly appalling draft ‘Good Practice Guide’ to estate regeneration was published in December 2016. A consultation on that draft closed nearly a year ago in March 2017, and the results were that 95 per cent of responders asked for ballots for residents facing demolition.

However,

I have now found out that, all this time, the Mayor has been quietly signing off funding for some of the most controversial estate schemes in London….despite promising in his manifesto to “require that estate regeneration only takes place where there is resident support, based on full and transparent consultation.”

By Sian Berry

Read More

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Cyclical Works Financial Housing ILA Information Islington LBI Leaseholders Listed Buildings Major Works Meetings Partners PFI Repairs Service Charges

Housing Scrutiny – Information on Partners Resident Scrutiny Arrangements Meeting Tuesday 6th February 2018.

Housing Scrutiny-Information on Partners Resident Scrutiny Arrangements Meeting Tuesday 6th February 2018.

In advance of next week’s Housing Scrutiny meeting which will be considering the performance of Partners, please find attached a note submitted by a Partners tenant on the organisation’s resident scrutiny arrangements. This may inform discussions at the meeting.

The meeting will be held on Tuesday 6th February, 2018, at 7.30pm in Committee Room 4. The pre-meeting will be held from 7-pm in Committee Room 3, at Islington Town Hall.

Please click on this link –PartnersResidentScrutinyNote2018.pdf

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Financial Housing ILA Information Islington Lands Tribunal LBI Leaseholders Major Works Meetings PFI Repairs Service Charges

ILA meet Wed 11.01.17 – Guest TBC

Islington Leaseholders Association Meeting

On

Wednesday 11h January 2017

In

Islington Town Hall

At

7pm – 9pm

Hosting the meeting: Dr Brian Potter Chairman (ILA)

Guest Speaker: To be advised

Website www.ila.org.uk
Twitter @ilaorguk
Face Book www.facebook.com/IslingtonLeaseholdersAssociation

Volunteers wanted
The ILA are looking for a ‘secretary’ to take minutes and distribute them regularly to all the directors and asks for a volunteer to undertake this essential part of the work, to assist with the smooth running of the organisation. If you are interested please log into https://www.ila.org.uk/faqs/contact-form.

If you wish to join or renew your membership please contact “Support” section of our website ww.ila.org.uk where you can obtain the appropriate membership forms.

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ILA Information Islington LBI Leaseholders Major Works Meetings Partners PFI Service Charges Website

ILA meet Wed 09.11.16

Islington Leaseholders Association Meeting

On

Wednesday 9th November 2016

In

Islington Town Hall

At

7pm – 9pm

Hosting the meeting: Dr Brian Potter Chairman (ILA)

Guest Speaker: To be advised

Website www.ila.org.uk

Twitter @ilaorguk

Face Book www.facebook.com/IslingtonLeaseholdersAssociation

 

Volunteers wanted

The ILA are looking for a ‘secretary’ to take minutes and distribute them regularly to all the directors and asks for a volunteer to undertake this essential part of the work, to assist with the smooth running of the organisation.  If you are interested please log into https://www.ila.org.uk/faqs/contact-form.

 

If you wish to join or renew your membership please contact our website ww.ila.org.uk where you can obtain the appropriate membership forms.

 

Please impress upon any other leaseholders that it is in their interest to attend these meetings regularly…..

 

Dr B.S. Potter Chairman (ILA)

 

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Councillors Cyclical Works Financial Housing ILA Islington LBI Leaseholders Major Works Partners PFI Repairs Service Charges

Pity that Islington’s Councillors aren’t as concerned about their leaseholders

Please read this letter…

Basically, in a very few words, it outlines many of the problems, and aspirations, associated with being a council leaseholder in the borough of Camden.

In my opinion its content could/should be common to all council leaseholders, regardless of which borough they live in since it forcefully stresses the plight of a deliberately ignored proportion of the electorate…until, of course, the council present us with their grossly inflated charges for substandard work…

I just wish I had written it…

Dr Potter

Chairman: – Islington Leaseholders Association (ILA)

 

 

Report of the Camden Leaseholder Recharges Scrutiny Panel

Cllr Meric Apak (Chair) writes:

I cannot help but speculate whether, before my time as a Councillor, my predecessors have been in this same position, aspiring to resolve leasehold related issues in council housing.

My personal aim through this scrutiny process has been to shine a torch on our failings as shown by the evidence we have collected, learn from this, and make recommendations to unravel this complex tangled mess which we seem to have allowed to fester.

Alas, for too long now we seem to have turned a blind eye to a culture which treats our leaseholders as second class residents – at least that’s the impression I get from my postbag. We need to accept that leasehold tenure in council housing is here to stay and that our leaseholders make a positive contribution to Camden.

Leaseholders are neither an irritating adjunct to council housing nor an ATM machine, and we need to differentiate the ordinary vast majority, from the minority who used the Right-to-Buy scheme for property speculation purposes.

We need to tap into Leaseholders’ knowledge and expertise to help Camden drive costs down, particularly in supervision and management. Services need, particularly in today’s straightened times, to provide value for money and to be comparable with those procured elsewhere in the marketplace, whilst complying with health and safety requirements. Not driving costs down can only result in unjustified charges to leaseholders which will not be recovered, which in turn can only be met by the Housing Revenue Account – thus pushing rents higher. So when we say leaseholders are “subsidised by tenants”, are we not highlighting our own failure?

We need to come up with ingenious methods to successfully engage with and meaningfully involve leaseholders (together with tenants) during the consultation process and convince them from the outset that this process will deliver a high quality service and value for money.

For this to work, there needs to be ‘buy-in’ from leaseholders that the survey and estimated cost of works to be done is worth the paper it’s written on. We then need to execute the agreed work, on time and to the agreed budget. This is obviously a simplification of what is needed – perhaps even a fanciful aspiration some might say.

Our success will be measured by how much culture change we can bring about throughout the officer ranks of the Council. We have a real opportunity to expand the ‘Right First Time’ philosophy, and to instill ‘buy-in’ for this concept right from the very junior member of staff to the most senior manager, and through to external providers and partners involved in delivering services to our leaseholders and tenants.

I would like to extend my thanks to the panel members for assisting me in this process. I would also like to say a special thanks to our Assistant Director Stuart Dilley, who agrees that there does need to be a culture change within the Council. Special thanks also to our committee clerk Vinothan Sangarapillai who has been instrumental in capturing the evidence through his diligent note taking.

But most of all, I am truly grateful to the many leaseholders for the large number of case studies that they have submitted to the Panel and took the time to describe the many harrowing experiences they have endured under the unsatisfactory historic arrangements – thank you.

Meric Apak

 

Context   http://wp.me/PY9zq-Ly

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Financial Housing ILA Information Islington LBI Leaseholders Major Works Meetings Newsletter Partners PFI Repairs

ILA Meet Wed 14.09.16

Islington Leaseholders Association Meeting

On

Wednesday 14th September 2016

In

Islington Town Hall

At

7pm – 9pm

Hosting the meeting: Dr Brian Potter Chairman (ILA)

Guest Speaker: To be advised

Website www.ila.org.uk

Twitter @ilaorguk

Face Book www.facebook.com/IslingtonLeaseholdersAssociation

Volunteers wanted

The ILA are looking for a ‘secretary’ to take minutes and distribute them regularly to all the directors and asks for a volunteer to undertake this essential part of the work, to assist with the smooth running of the organisation.  If you are interested please log intohttps://www.ila.org.uk/faqs/contact-form.

If you wish to join or renew your membership please contact our website ww.ila.org.uk where you can obtain the appropriate membership forms.