Homeowner. Handbook.

Transcription

1 Homeowner Handbook

2 Language We are always catering for the individual

3 Contents Welcome to your new home Welcome to your new home 1 Contact details 2 About us 3 Moving in 4 Your lease explained 5 Your charges explained 7 Main service charge components 9 Service charges - the continual cycle 11 Major works 13 Guide to sinking funds 14 When do I have to pay my charges? 16 How can I pay? 17 Decoration and repairs 19 Looking after your home 20 Living in flats and maisonettes 22 Neighbourly advice 23 Estate service standards 25 Our commitment to you 26 Getting involved 28 Equal opportunities 29 Looking Ahead 30 Your questions answered 32 New build property defects 36 Your opinion 38 L&Q Homeowners Handbook Page 24

4 Welcome to your new home We have produced this Handbook to help you settle into your new home. We hope you will find it a useful guide to the services we provide. Please have a look through the Handbook to find out more about the kind of service you can expect. Keep this Handbook in a safe place so that you can refer to it when you need to, and pass it on should you sell in the future. For more information about any of our services, please contact a member of staff at your local office - you will find information about how to contact us in the Handbook. We hope that you will enjoy living in your new home. Best wishes David Montague, Group Chief Executive L&Q Homeowners Handbook Page 1

5 Contact details Homeowner Services Team at L&Q Direct is the single point of contact for homeowners wishing to access L&Q services. Homeowner Services Team L&Q Direct PO Box 194 Sidcup DA14 5HU Tel: (Option 1) Tel: (local rate) L&Q website Information about L&Q and our services. Online services include being able to report repairs and pay your rent and service charges. L&Q Homeowners Handbook Page 2

6 About us L&Q is a not-for-profit organisation that has helped house over a million people since we were set up more than 40 years ago. L&Q s aim is creating places where people want to live by offering high quality homes and services to people and neighbourhoods across London and the South East. We are the largest housing association group in London and the South, managing more than 67,000 homes and employing over 1,200 staff. The rents for our homes are much lower than private market rents, because we receive grants from the Government and other sources to keep costs down. This allows us to house people who cannot afford to rent or buy in the private market. Like all housing associations, we are regulated by a government agency called the Homes and Community Agency. them provide a quality service and treat you with courtesy and respect. We carry out regular research into what our customers think of us and act on the results to improve our services. One of the ways we do this is by surveys, so if you are asked to take part in a survey please get involved so we can find out what matters to you. We organise many other opportunities for resident involvement, so hopefully you will want to find out more about these and help us make the high quality services we provide even better. If L&Q do not meet your expectations please contact us immediately and we will do our best to put things right. We invest large amounts of money and time in our homes and on community projects to help improve our residents quality of life. In return, we ask that you look after your home, behave reasonably to your neighbours and pay rent and charges regularly. If you fail to meet your responsibilities, we will bring it to your attention and we may take legal action. All our staff receive customer service training to help L&Q Homeowners Handbook Page 3

7 Moving in Our commitment to you Moving day Please show courtesy to your new neighbours by not blocking stairwells, landings or propping open lift or communal front doors. Please take care not to damage communal areas, such as walls and doors when moving furniture. Remember to do the following things Give people you know, and organisations you deal with, your new address Ask Royal Mail to redirect the post from your old address to your new address Make sure you have cancelled all the services in your old home including direct debits Take meter readings for gas, electricity and water (if you have a water meter) in both your old and new homes Services You are responsible for getting your gas, electricity and water supplies connected, and paying your bills from the date you move in. Council Tax You should contact the local authority for where you live to arrange your Council Tax payments You may be entitled to Council Tax Benefit if your income is below a certain amount or a reduction in the amount you pay if you are the only person living in the property (or both). Paying your charges You will be responsible for the ground rent, buildings insurance and reant and service charges from the date of completion. Your solicitor should have explained your lease to you and what expenditure you will be responsible for. If you are not sure what you should pay and when, please contact your local office for assistance. It is important that you do not allow your account to fall into arrears as you will be in breach of the terms of your lease. You are at risk of losing your home if you do not keep up payments of rent or other charges. Gas and electricity supplies are usually connected. If they are not, you will have to contact the suppliers to get them connected so they are ready to use when you move in. If your water supply is not turned on, you will need to find the stopcock. This is usually found under your kitchen sink. In a block of flats, you may sometimes find the stopcock is located in the communal hallway. If this is the case, it is a good idea to clearly label which mains stopcock services your property so that you can find it quickly in an emergency. L&Q Homeowners Handbook Page 4

8 Your lease explained Your solicitor should have provided you with a copy of your lease. Please retain this in a safe place as you will need to refer to it and when you sell. If you have not got a copy of your lease you can get one from your solicitor or L&Q, subject to a fee charged by HM Land Registry Your lease is a legal document which explains your rights and responsibilities as a homeowner (or lessee) and the relationship between you and the freeholder (or lessor) of your home. Your solicitor should have explained the lease before it was granted or assigned to you. Leasehold ownership of a flat or maisonette is simply a long tenancy, the right to occupation and use of the flat for a long period the term of the lease. This will usually be for 99 or 125 years and the flat can be bought and sold during that term. The term is fixed at the beginning and so decreases in length year by year. The ownership of the flat or maisonette usually relates to everything within the four walls of the property, including floorboards and plaster to walls and ceiling, but does not usually include the external or structural walls. The structure and common parts of the building and the land it stands on are owned by the freeholder, who is responsible for the maintenance and repair of the building. The landlord can be a person or a company, including a local authority or a housing association. A plan will be attached to your lease. This shows the boundaries of your home and the building that includes it. There may also be another plan to show the areas for which you will pay a share of estate maintenance costs. The lease contains legally binding responsibilities both for you and us as the freeholder. There are also some statutory requirements that ensure you have information and are consulted before major works are carried out. Your responsibilities include: Paying the ground rent, building insurance and service charge Paying other outgoings on the property (e.g. council tax, utility charges) Maintaining and redecorating the interior of your home Obtaining our written permission before you carry out major alterations Not causing a nuisance or annoyance to your neighbours Obtaining our written permission to keep a pet or fit a satellite dish Advising us in writing if you sub-let the property or take in a lodger Providing us with an address where we can contact you if you do sub-let Our responsibilities include: We use the income we collect to provide the following; Keeping your building insured Consulting you about any works that will cost more than 250 per home L&Q Homeowners Handbook Page 5

9 Your lease explained... Consulting you about any contract that will last for more than 12 months that will be reflected in your service charge as a charge of more than 100 per annum Producing audited service charge accounts within six months of the end of the accounting year (currently 31 March) and providing these to you by 30 September Keeping the structure, common parts and outside of the property in good repair. The lease will define this Not unreasonably refusing you permission for improvements or alterations you want to make to your home Please remember It is important that you keep to the conditions of your lease. If you break any of the conditions we may take you to court. If the court considers the breach to be serious you could lose your home without any compensation or payment for your lease, and have to pay our court costs. Likewise, if you feel L&Q is not keeping to the conditions in the lease, please let us know immediately so we can review this. This brief summary is only a general guide and has no legal authority L&Q Homeowners Handbook Page 6

10 Your charges explained As well as your mortgage payments, there are other charges which you must pay. Management companies Some large developments, where L&Q are not the freeholder, have an appointed management company. The management company are responsible for providing all services at the development. L&Q are obliged to pay for the services and recover the costs through your service charge. If you are not satisfied by the services provided by the management company or its sub-contractors you should let us know immediately so we can raise your issues. Ground rent Because leasehold is a tenancy, it is subject to the payment of a rent (which may be nominal) to the landlord. Ground rent is a specific requirement of the lease and must be paid on the due date. Your lease will define this. Service Charges Service charges are payments by the homeowner to the landlord for all the services the landlord provides. These will include maintenance and repairs to common parts, insurance of the building and, in some cases, provision of lifts, lighting, communal aerials, door entry systems, cleaning of common areas and grounds maintenance, etc. Usually the charges will also include the costs of management. Service charges can vary from year to year; they can go up or down without any limit other than that they are reasonable. Details of what can (and cannot) be charged by the landlord and the proportion of the charge to be paid by the individual homeowner will all be set out in your lease. As your landlord, we arrange provision of the services. As the homeowner, you pay for them. Most modern leases allow for L&Q to collect service charges in advance, repaying any surplus or collecting any shortfall at the end of the year. We can only recover those costs which are reasonable. Before the purchase of a leasehold property, for personal budgetary purposes, it is important to find out what the current and future service charges are likely to be. You should also check if there is a reserve fund (sinking fund), and what plans there are for major works that could affect the service charge in the next few years after your purchase. We provide different services depending on the type of property you occupy and the terms of your lease. Services we provide that you must pay towards are detailed in your individual lease but the cost is not. This is because the service charge will vary every year. L&Q Homeowners Handbook Page 7

11 Your charges explained... Flats (properties with significant communal services) Flat leases allow us to set an estimated service charge budget for the forthcoming financial year and collect those estimated service charges in advance. In practice, homeowners often find it more convenient to pay by instalments. We can offer this and other variations from advance payment. Please contact us if you wish to pay by instalments and we will make the necessary arrangements. Maisonettes (properties without significant communal services) Some maisonette leases do not allow us to collect service charges in advance, but you will still receive an estimate at the beginning of each financial year. Some maisonettes do not contribute to the cost of providing estate services, so service charges tend to be less than for flats. You may want to make monthly instalments in advance, as you will be expected pay the full amount upon receipt of the final account in September each year. Garages You may have acquired a garage on a leasehold basis from us, or an assignment if you are not the first homeowner. The leases operate very much the same as the lease for a flat, and may be transferred at the same time as the lease for a home. You are responsible for the maintenance of the garage including the door. We maintain the structure (walls, roof and rain water goods). We will charge you your share of building insurance and any maintenance costs, including those of the communal areas. L&Q Homeowners Handbook Page 8

12 Main service charge components The Management fee This covers the costs of providing a management service to you. It includes managing service contracts, dealing with insurance claims and answering any questions you have. Audit fee We are legally bound to ensure that the service charge accounts are independently audited at the end of each financial year. This usually takes place between June and August, and a copy of the certified accounts are provided to you by 30 September. The audit is carried out by an accountant or solicitor. They charge for this service, and this cost is recovered from homeowners who each pay a fair proportion. The buildings insurance charge As the owner of the freehold of your home we need to make sure that it is properly insured. We do this by insuring your home on our block policy. As all our homeowners are insured on this policy, we get a cheaper rate and pass the savings to you. We do not make a profit on the premium we collect. Information about the current buildings insurance policy and a summary of cover can be found in this Handbook. If you need further details of the insurance policy, we will be happy to provide this. We will also help you if you need to make a claim. You should make sure that you are not paying buildings insurance to your mortgage lender as well as to us. There are some properties which L&Q don t own. We don t insure these buildings, this would be undertaken by a third party. Our policy does not cover the contents of your home. We recommend that you take out home contents insurance to cover theft or damage to your belongings. We are not responsible for any damage to these unless we or our agents have been negligible. We have negotiated a special discounted home contents policy for our residents that offers a variety of different payment methods, including direct debit. Please contact our insurance department on for further information. Gardening and cleaning If your home has communal gardens, extensive hallways and other communal areas, we will appoint contractors to do the gardening and cleaning. The costs are covered by your service charge payments. To make sure you get a competitive price and a good service we invite tenders for the work on a regular basis. We have procedures to check that the contractors are doing a good job but will always welcome your help. If you have any comments on the service you are getting from the contractors, please let us know. Communal electricity If your building or estate has any shared lights for paths, car parks or hallways, you will pay for the running costs through your service charge. In some buildings, trace heating has been installed. This is an automated system that detects low temperatures, mainly during the winter months. If the temperature drops too low, the trace heating is switched on to prevent pipes from freezing. The cost for any electricity and any cost for the standing charge used is recovered through the service charge. L&Q Homeowners Handbook Page 9

13 Main service charge components... Responsive repairs These are carried out in response to a repair request either from a homeowner, tenant, Trust surveyor or Neighbourhood Services Officer. You will contribute to the cost of repairs carried out to shared or communal areas only. Responsive repairs include communal glazing or entrance doors, gutters, rainwater down pipes, blocked drains, etc. The costs incurred in carrying out responsive repairs will be included in your service charge. Planned maintenance As the landlord, we are responsible for the main structure of the building and surrounding areas. This includes regular also called cyclical decoration of the exterior and communal areas of the building where you live. Your lease will set out the maximum time periods for when we must carry out redecorations, but five or seven years are usual. Planned maintenance also programmes schedules for major repairs to roofs, lifts, door entry systems, etc. As with cyclical decorations, you will be consulted on the repairs needed, why they are needed and the estimated cost involved before any work commences. Reserve or sinking funds Many leases provide for the landlord to collect sums in advance to create one or more reserve or sinking funds. The purposes of such funds are to build up a sum of money to cover the cost of irregular and expensive works such as external decorations or roof replacement. There are usually two reasons for maintaining such a fund. The first is to ensure that all occupiers contribute to major works, not just those who are in occupation at the time they are carried out. The second is to even out the annual charges and to assist with homeowners budgeting. Leases sometimes say how much is to be contributed each year, but usually they do not and it is left to the landlord to determine the contributions. Best practice is to calculate the contributions by reference to budget costs for the works and the periods before the works are to be undertaken. Where sinking funds exist, you will be asked to make contributions either by annual or monthly instalments. When future replacements, major repairs and cyclical maintenance are carried out, the sinking fund will be used to offset the cost. Any surplus will remain in the sinking fund, but any deficit will be debited to your service charge account and you will have to pay the balance. Monies paid into a sinking fund will be held in trust, so that no matter what happens to the landlord the money cannot be used for any other purpose and remains the property of the homeowners. Interest payable on the sinking fund balance is credited to the fund after tax. Contributions to the sinking fund are not repayable when the property is sold as the benefit of the fund is transferred to the new homeowner. Where sinking funds do not exist, but the lease makes provision for them, we may introduce them. We will consult with you before we do this. L&Q Homeowners Handbook Page 10

14 Service charges the continual cycle Every year L&Q spends millions of pounds in maintaining and repairing properties across all our neighbourhoods. This is a real team effort that encompasses many teams:- Neighbourhood Services Officers - Visiting and checking the quality standards Contractors - Carry out the works Neighbourhood Teams - Verify and code all contractors invoices submitted Finance Department - Paying invoices due Rent & Service Charge Team - Estimate charges every February & prepare statements of actual expenditure every September. External Agencies Team - Collect payments due Homeowner Services Team - Homeowner first point of contact Each team plays a vital role in ensuring that the service is provided to standard and that any problems are investigated and rectified. Service charges operate on a cyclical basis of estimation and reconciliation of expenditure. The service charge year operates from 1st April until 31st March. After 31 March we have six months to tell you the actual we spent, this will be by 30 September. Example of cycle period Feb Estimates for forthcoming service charge year are calculated and sent to homeowners. This details the estimated expenditure during the coming year and will split the payment due into 12 equal shares. If you pay a rent on a shared ownership property you will also be advised of the new amount for the year and this will be included as one payment per month. 1st April Estimates for service charge year come into effect, your preferred method of payment such as direct debit or standing order will commence. 30th September Actual statements of expenditure for 2 010/11 (1st April March 2011) will be produced that compare what we thought we d spend against what we did actually spend at your property. This will create either a refund for any amounts we have not spent or a demand for payment if we have spent more than we thought. This will be shown on your service charge statement. If we owe you a refund a credit will be put on to your account with L&Q, we can refund this by reducing your direct debit for the following month or if you do not pay by direct debit we can issue you with a refund cheque. If you owe us we will increase your direct debit to collect the payment over one month or a period of months depending on the amount that you owe. The letter attached to the service charge statement will show the payment periods. L&Q Homeowners Handbook Page 11

15 Service charges the continual cycle... If you do not pay by direct debit you will need to increase your standing order or make a cheque or card payment. Feb Estimates for the forthcoming service charge year are calculated and sent to homeowners. This details the estimated expenditure during the year and will split the payment into 12 equal shares. If you pay a rent on a shared ownership property you will also be advised of the new amount for the year and this will be included as one payment per month. 31st March the current service charge year (1 April March 2012) ends. Any invoices for works carried out must be received and passed for payment by 31 March, any invoices received after 31st March will fall into the next financial year. 1st April Estimates for service charge year come into effect, your preferred method of payment such as direct debit or standing order will commence. The cycle continues. FAQ s Q. What should I do if I have a query with my service charge estimate or statement of actual expenditure or I have not received a statement? Q. What if I am having problems making the payments due? A. Please contact Homeowner Services Team immediately as they will be able to offer advice and can offer payment terms to help. Do not ignore the problem as it will only get worse. Q. What happens if L&Q are not the freeholder of my property? A. In some instances L&Q is granted a long lease by a freeholder at a development in order to comply with planning restrictions. This gives L&Q a block or a number of individual properties. The freeholder will appoint a management company who are responsible for all the services on the site such as cleaning, gardening or ensuring repairs are carried out. The management company instruct the contractors and ensure that works are carried out. L&Q will work with the management company to ensure acceptable standards are maintained. The management company will invoice L&Q for services provided. You will then pay your proportion share of these costs through your service charges. If you have any queries about the performance of the management company or charges please contact Homeowner Services. A. Initially you should contact Homeowner Services Team who will co-ordinate getting the information you require and make sure they keep you updated on progress. Sometimes the information is held by different teams and we will have to obtain this for you. As all charges are due at the same time we do experience extremely high volumes of queries around March and October and it can take longer to respond than we would normally expect so would ask for your patience around these times. L&Q Homeowners Handbook Page 12

16 Guide to major works What are major works? Major works include items such as window or roof renewal, installation of door entry systems, and the decoration of communal and external areas. You can only be charged for major works in accordance with your lease agreement. If you have purchased your property as a shared owner, or homeowner you will be responsible for paying a proportion of the major or planned works at your block/estate. You will only be charged as per the terms of your lease and will not subsidise any other residents or properties. If you purchased your property under Right to Buy/ Right to Acquire, in your sale offer (the Section 125 Notice) we will have notified you of any planned works which are due to be carried out during the first 5 years of your lease. We can only charge you in connection with the works listed (plus an allowance for inflation). If you have a reserve/sinking fund we will use the money in this fund for any major or planned works. The fund cannot be used for day to day maintenance items and is only for use towards major items such as roof renewals, window replacements, external and internal (communal) decorations. There are strict guidelines that we must abide by, when consulting homeowners about major works. These guidelines are set out in Section 20 of the Landlord and Tenant Act We have to consult with you where we plan to carry out works that would cost any one homeowner more than 250. L&Q are required to provide you with at least two estimates for the planned works and where a nominated contractor provides us with an estimate, this must be included as one of the minimum of two estimates. L&Q will inform Homeowners of the chosen contractor and we will provide details of all the observations made by residents and our response to them. L&Q must advise you of your liability for any major works that are to be carried out. Once the works are completed we will calculate the actual cost to you and issue an invoice (if you have a sinking fund and it has enough in it to cover the cost of the works we will send you a statement of accounts rather than an invoice). By law we must send out the final costs within 18 months of first incurring costs. We will normally send out invoices within 6 months of works completing. If you have any queries about the works carried out or the cost you should contact the L&Q at your earliest opportunity. In some circumstances L&Q may agree to payment for the major works by instalments over a fixed term (dependent on the amount of the invoice). You will be required to make payments by standing order, swipe card or by debit/credit card. Alternatively you may be able to add the amount to your existing mortgage or by obtaining a secured loan on your property through your mortgage lender. Usually there will be an interest charge and administration fees applicable to this type of loan. You may be able to obtain a loan from a bank or building society. There will be interest chargeable on this type of loan, how much will depend on the lender. If you are aged 60 or over, are disabled or have a disabled person living with you, you can apply to the Home Improvement Trust to ask about financial assistance packages. If you fail to keep to any agreement you make with us, L&Q may take Legal action to recover the debt. Whatever payment option you choose, you should contact L&Q immediately to let them know what arrangements you are making for payment. Do not ignore any demand for payment as failure to act may result in legal action being taken against you. L&Q Homeowners Handbook Page 13

17 Guide to sinking funds What is a sinking fund? A sinking fund is the name given to a long term savings account that homeowners contribute to every month through service charges. This builds up every year and should pay for any major works that are required over a period of time, such as the painting of communal areas or replacement of a roof or windows. Why have a sinking fund? If a sinking fund is not set up, payment for any required works are due from a homeowner on completion of the works. This can mean that homeowners will receive large bills that they need to pay. A sinking fund should mean that no additional payments are due when major works are required. How do you work out how much I have to pay towards the sinking fund? When the property is built the builder will provide L&Q with a cost list of all component parts of the building (such as windows, roof, lifts, pumps, fire safety systems etc.) and approximate life expectancies for these. From this information L&Q can work out how much is needed from each property to pay for the works when required. This information is then used to plan future works. Other factors such as independent property condition surveys, works to similar properties and inflation are also taken into account. What if no works are required? No works are started until a qualified surveyor has inspected the property and assessed the condition. If it is deemed no works are required a reassessment will be scheduled for the following year. Alternatively, if a component such as a pump fails and is beyond repair this will be replaced when required. Will I be consulted about any works that are required? Yes, L&Q are obliged to consult with you for any single item of works that will cost more than 250 per property. This will be in the form of letters that meet legal requirements. If you have any comments, wish to nominate a contractor or have a query with the costs or works you should contact L&Q as soon as you receive your consultation letter. Further information about consultation legislation can be found at (This is a free Government-funded service that provides independent advice to homeowners). What happens if there is not enough money in the sinking fund to pay for the works? L&Q try to avoid this scenario where possible, however unexpected works do occur. You will receive formal confirmation of the final amount of works and any likely shortfall. L&Q will pay for the contractors bill, make the contributions due for L&Q tenants, deduct the sinking fund and any amount still left will be payable by homeowners. Payment options are available of periods up to three years depending on the amount owing and are interest free. Who looks after my sinking funds contributions? All contributions are held by L&Q in a central bank account and accounted for separately. Interest is earned on the monies that are held and is added to the sinking fund balance every year. L&Q Homeowners Handbook Page 14

18 Guide to sinking funds... I live in a mixed block of flats; do I pay for the tenant s works through my sinking fund? No, you only pay for your contribution due. If you live in a block containing 10 flats, five of which are owned and five tenanted each homeowner will pay a contribution of 1/10th of the cost of the works. L&Q would pay 1/10th for each of the tenants as a contribution. This is paid for through the tenants rent. Can I take my sinking fund contributions with me when I move? No, the contributions that you make will remain in the account and be used when works are required. You may wish to make an informal arrangement with your buyer to take this into account. A buyer s solicitor will always write to L&Q and enquire about the sinking fund balance. From experience a sinking fund will improve the saleability of a property as the repair burden on the buyer is reduced. What do I do if I think the sinking fund contributions are too high? If you want clarification of what you are paying you can get this from L&Q s rent and service charge team. This includes items covered, life expectancy or the balance in the account. If you are still not satisfied you will need to provide reasons why you think the charge is too high that are supported by evidence. L&Q may commission an independent survey report to review the charges that is supported by your evidence. The result of the report will be binding on both sides, this could mean that the sinking fund contributions decrease or increase depending on the report findings. What if I do not pay into a sinking fund? All new build properties have a sinking fund set up as a matter of course. Older properties, particularly those transferred as part of stock transfers from local authorities do not normally have a sinking fund. This means that no monies have been put aside by homeowners for works that will be required and full payment will be invoiced once works have been completed. Full consultation on the works will be carried out and payment options will be available after the final bill is known. Can I start a sinking fund at our property? Yes, if everybody is agreeable in the building L&Q will work with you to agree suitable contributions and remaining life expectancies on parts of the building that will require work in the future. Why are repairs not paid out of the sinking fund? The sinking fund is calculated to try and ensure that there is enough money to pay for major works to the property that we know will incur significant costs, such as replacement of the roof. Day to day repairs are paid separately via your service charge. If you have any further questions please contact the Homeowner Services Team initially. Telephone homeownerservices@lqgroup.org.uk L&Q Homeowners Handbook Page 15

19 When do I have to pay my charges? Around February we will prepare an estimated budget for the coming financial year from 1 April. We will then send out an invoice detailing the estimated costs for the coming year Ground rent This is due in advance on or before 1 April each year. Buildings insurance This is included as a service charge although we identify the cost on your invoice. L&Q pay the building insurance in advance, so we request payment from homeowners in advance. Advance service charges If your lease requires advance service charge payments, we will issue an estimated service charge schedule for your property for the year 1 April to 31 March. You have the option of paying the service charge in full or spreading the cost over twelve monthly payments by Direct Debit. Reserve or sinking fund Where there is a sinking fund, you will be advised of your contribution in both the advance service charge invoice and the final service charge invoice. Final service charges Irrespective of whether you pay in advance for your service charges or not, you should receive a final service charge invoice at the end of each financial year. We can only charge you what we have paid out on services, and our management fee. We do not make a profit. At the end of each financial year on 31 March, we will collect together all the actual service charge costs for the previous year. Once we know the true cost for each homeowner, an independent accountant will check and agree the actual service charge costs. They will sign an audited service charge account certificate. You will receive a copy of the audited account invoice by 30 September. This invoice will contain the resulting surplus (credit) or deficit (shortfall). If there is a deficit, this must be paid upon receipt. If there is a surplus, this will be credited to your service charge account. You may be entitled to a cheque refund providing your account has a credit balance. Right to inspect accounts Even though there has been an independent audit, you also have a statutory right to inspect the invoices for costs included in the service charge accounts. We can arrange this and, for a reasonable charge, supply copies. Record keeping You should keep copies of the annual service charge accounts. They are important records both for you and anybody who wants to buy your lease. Queries If you have any questions about your service charges you should initially contact the homeowner services team. L&Q Homeowners Handbook Page 16

20 How can I pay? We want to make it as easy as possible for you to pay your service charges. This means giving you a wide choice of different ways to pay so you can choose the best and most convenient one. Direct Debit Many of our residents have already chosen to pay by Direct Debit and we would encourage you to consider it as your first choice. Here are some of the advantages of paying by Direct Debit: Only one form to fill in to set up the debit instruction The Direct Debit guarantee covers you against any errors made by us or your bank You can cancel at any time You can choose the frequency and payment dates to suit you Swipe cards Plastic swipe cards were introduced in April 2001 and have become a very popular way to pay. There are a large number of outlets available, so finding somewhere near home or work to make a payment should be easy. If you have access to the internet, you can log on to where you can search for your nearest outlet. Payments can be made where you see these signs: Credit card/debit card Payment can be made over the phone to L&Q. Standing order Please contact Homeowner Services for L&Q s bank details. Cheques Payable to L&Q rents sto. Please quote your reference number on the reverse and forward to financial services. What if I have trouble paying my charges? Your service charge will vary from year to year depending on the costs incurred. The biggest variation will be when it is necessary to carry out major works, although much or all of the cost may be met from a reserve or sinking fund but only if you have made contributions to one. We will consult you about major works, and give you advance warning of the amount you will have to pay, so if there is no sinking fund it is in your best interests to budget for the future expenditure. Whether large or small amounts, we need to collect your service charge contributions so we can pay the costs of managing and providing services to all the homeowners in your building or estate. L&Q Homeowners Handbook Page 17

21 How can I pay?... Talk to us first contact our External Agencies Team if you are having financial difficulties Get advice our staff can help you to start with and will refer you to specialist welfare benefits and debt advice agencies depending on your circumstances Do not ignore any letters or documents we send you, or any calling cards we may leave at your home Deal with debt early leaving it until things build up only makes it harder to sort out in the long run We will chase up payment, if necessary with court action, to enforce your debt. However, we will also offer details of how to get advice on what benefits you may be entitled to receive, and any other issues. Where appropriate we will take all reasonable steps to agree an alternative but fair individual payment schedule. If you do not to pay your service charge, your lease can be forfeited. This means that we can repossess your home, and you would not be entitled to anything for it. However, this could only occur after a Leasehold Valuation Tribunal has confirmed that our service charges are reasonable and any other legal requirements have been met. We will do all we can to avoid forfeiture ever happening. If you have a mortgage, your lender will want to protect their security. We will let you know if we intend to contact them to see if they will pay the arrears and add the amount to your mortgage. Most lenders will do this, but it may affect their view of you as a borrower. A bad payment record could stop you getting another mortgage or loan. Regular statements To help you keep track of your service charges payments and the balance on your account, we will send you a detailed statement every quarter. It will show all debits and credits. Please use this to check that your account is up to date. Can I get help towards paying the service charges? If you are earning a low income, or receive a state or private pension, you may be entitled to claim Housing Benefit to help pay the service charges. Your local council can give you a claim form, which you should fill in and return to them with the various proofs needed. Please remember that it is your responsibility to make sure you provide all the information needed to assess your claim. If you are asked for more information, you should supply this immediately. You must also tell the council about any change in your circumstances immediately as it may affect the amount of benefit you are entitled to. Any change starts from the date the change happens, not the date when you tell the council, so don t delay. Further help: National Debtline on or at Consumer credit counselling service on or at Citizens Advice Bureau at to find your local CAB office Moneybasics at Our Homeowner Income Team L&Q Homeowners Handbook Page 18

22 Decoration and repairs Decorating your home You are responsible for keeping the interior of your home in a good decorative condition. L&Q arrange for the exterior and communal areas to be decorated on a regular basis. This is usually every five or seven years, but your lease will state which period relates to your property. When it is time to carry out the cyclical decorations, we will consult with you on who the contractors will be and the value of the tenders. Repairs You are responsible for all repairs inside your property (after the end of any defect liability period, usually one year). We are responsible for keeping the structure and outside of your home repaired. To report a repair, please phone L&Q Direct using the Freephone number below. L&Q Direct You are responsible for all repairs inside your property (after the end of any defect liability period, usually one year). Planned maintenance Planned maintenance is different from responsive repairs. It means major repairs or improvements such as replacing the roof or installing new windows. If we are going to include your home in a programme of planned work, we will give you notice about this and carry out a consultation process. Priority times When you report a repair we will give it a priority rating from 1 to 4. This tells you how long to expect the repair to take. Emergency Within 24 hours for example, burst pipes, fires, flooding, blocked drains, lack of security or complete power failure. Urgent within five working days for example, faulty plumbing, water leaks Essential repairs within 20 working days for example entrance doors Major work within four months for work such as damp-proofing Responsive repairs appointments Where appropriate, either our contractor or a member of our staff will contact you to arrange a convenient time (morning or afternoon) to call to inspect or carry out the repair. L&Q Homeowners Handbook Page 19

23 Looking after your home Routine As the homeowner, you are responsible for the internal repairs to your home, and the safety of gas and electric fittings. You MUST arrange for regular servicing at least once a year of central heating boilers and systems, gas fires, etc. by qualified specialists. Your gas and electricity suppliers will normally offer this service. This is important for your safety, and that of your neighbours. If you fail to repair items such as water leaks or running overflows that have a detrimental effect on our tenants or the fabric of the building, we have the right to enter your property and carry out the repairs ourselves. You will be recharged for any expenditure we incur in the process. We will try to contact you before gaining entry so please keep us informed of any new contact numbers. You will be required to provide a copy of a valid safety certificate for your gas appliances annually. If you cannot provide this we may need to refer this to court to protect both you and your neighbours and to comply with health & safety legislation. What do I do in an emergency? It is important to think about what to do in an emergency before it happens. If you have a water leak, gas leak or electrical problem you need to be aware of what action you should take. Water Leaks If you find a burst pipe or you have a water leak you should immediately turn your water off. You do this by turning off the mains stopcock. This is usually found under your kitchen sink. In a block of flats, you may sometimes find the stopcock is located in the communal hallway. If this is the case, it is a good idea to clearly label which mains stopcock services your property so that you can find it quickly in an emergency Gas Leaks If you smell gas you should turn off your supply at the mains. The gas tap is found next to the gas meter. You should then call the gas supplier immediately. The number you should ring can be found on your gas bill or in Yellow Pages. Electricity If you have an electrical fault you should switch off the supply at the mains. This is found next to your fuse box. You should then call a competent electrician. If your supply fails completely you should call your electricity supplier. The number can be found on your electricity bill or in Yellow Pages. L&Q Homeowners Handbook Page 20

24 Looking after your home... Fire You can help to prevent a fire by unplugging electrical appliances before you go to bed and when you go away. Keep matches away from children and do not leave lit candles unattended. Smoke alarms are useful to warn you of a fire so you should check them at least once a month to make sure they work. Condensation If your home has condensation problems, you will often find black mould growing in the corners of the rooms, on windows and on outside walls. This can damage your home and furnishings. You can help prevent condensation by: Keeping air vents in your home open Wiping down windows in the morning where water may have collected overnight Keeping rooms warm in cold weather Opening your windows to allow fresh air in whenever possible Not using paraffin or bottled-gas heaters Pests For advice on dealing with mice, rats, cockroaches or other types of pest in your home, contact your local authority s Environmental Health department. There may be a charge so do ask about this. L&Q Homeowners Handbook Page 21

25 Living in flats and maisonettes When you are sharing facilities and living very close to your neighbours in a block of flats, this can cause difficulties, especially if people are inconsiderate or their behaviour is unreasonable. We ask that everyone makes a special effort to be a good neighbour so you do not upset or cause a nuisance to others living in your block or on your estate. Most of the problems we have to deal with on estates are complaints about noise. Noise travels easily between flats so please limit the activities that create a noise nuisance. Shared responsibility Everyone who lives in a block can use the shared hallways, gardens and drying areas. You should keep these areas tidy and free from rubbish. You can help us by doing the following: Getting to know your neighbours and local community this can help make it easier to talk to each other if any problems arise. Regularly cleaning the landing and stairs near your property if your lease says you have to. Making sure the stairs and landings are not blocked with things like toys, bicycles, rubbish sacks or prams. They can be dangerous if people trip over them or have to get out of the building quickly if there is a fire. Ask L&Q s permission before replacing carpet with any kind of hard floor covering such as wood, laminates or floor tiles. Ask L&Q s permission before replacing carpet with any kind of hard floor covering, such as wood/laminate or floor tiles. If your block has a door-entry system, making sure the door closes behind you. Don t wedge it open and don t let anyone in who you don t know. Always putting your rubbish in the bins. Don t leave rubbish outside your flat or maisonette. Making sure your children don t play in the shared hallways, stairs, balconies or doorways. Telling your Neighbourhood Services Officer if you see someone dumping rubbish noting information about them such as where they live, if they live on the estate and their vehicle registration if they use a vehicle to dump the rubbish. Safety considerations For your safety and others, do not store flammable substances such as petrol, bottled gas or paraffin heaters in your home, on your balcony or in shared areas. Do not throw, or allow others to throw, anything from your flat or maisonette. If there is a fire, call the fire brigade immediately. If it is safe for you to do so without putting yourself or your family in danger, tell everyone else in the block. Get out of the building as quickly as possible, closing doors behind you. Leave using the stairs, not the lifts. L&Q Homeowners Handbook Page 22

26 Neighbourly advice Anti-social behaviour Anti-social behaviour can range from incidents such as noise nuisance and dumping rubbish to serious offences of harassment and drug dealing. All types of anti-social behaviour result in distress and misery for individuals and can damage local communities. Where possible, we will take action against people if their behaviour is unacceptable and causes problems for others. You have a responsibility to make sure you act in a considerate and reasonable way towards others. This includes the behaviour of your household members and your visitors. If you experience antisocial behaviour, we may ask you to keep details of the incidents. We cannot take action without evidence. Contact your Tenancy Services Team who cover your area to discuss the problem and what action can be taken to put things right. If you have a disagreement with your neighbour, try talking to the people responsible to ask them to stop their behaviour before you contact us. For serious incidents, including threatening behaviour or violence, you should contact the police immediately and then report it to us. What L&Q will do Assess any report of antisocial behaviour, harassment or domestic violence promptly; Investigate the complaint and help you to sort out the problem without taking enforcement action; Offer mediation for disagreements between neighbours; Take enforcement action against people who are responsible for the problem; Work with other agencies such as the police and local authorities to find solutions; Look at making environmental or physical changes to an area to get rid of the problem; and Work with residents to make clear what is acceptable behaviour. You can get help from: Your local council s Environmental Health section (for complaints about noise nuisance); The police (for domestic violence and racial harassment problems); Victim Support (if you are a victim of crime); Your local council (to report abandoned vehicles and dumped rubbish on land we do not own); Mediation services; Social services; or ChildLine (a free and confidential 24-hour help line for children and young people). L&Q Homeowners Handbook Page 23