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Update on Strategic Review of Leasehold Service Charges

Meeting: 10/10/2024 - Cabinet (Item 56)

56 Update on Strategic Review of Leasehold Service Charges pdf icon PDF 158 KB

(Report of the Portfolio Holder for Housing, Homelessness and Planning).

Additional documents:

Minutes:

 

Report of the Portfolio Holder for Housing, Homelessness and Planning/ Executive Director Communities to provide an update on the work done by Campbell Tickell in relation to Leasehold Service Charges and sets out a series of recommendations in relation to that report.

 

Councillor S Smith Chair of Corporate Scrutiny attended to notify Cabinet of the report and recommendations from this item that was discussed at Corporate Scrutiny on the 9th October 2024. 

 

Councillor Smith presented Cabinet with an amendment to Recommendation 4 and an additional recommendation as set out below:

 

Amendment to recommendation 4

 

Cabinet approve the process for remedial works based on the completed surveys and utilising the QLTA approach.  A detailed cost breakdown must be submitted to the next available Corporate Scrutiny Committee as a briefing note.  Both these costs and the final invoices require approval form the Portfolio Holder for Housing, Homelessness & Planning

 

(Moved by Councillor Smith and seconded by Councillor Couchman)

 

Additional recommendation

 

Review & revise the payment plan criteria including the statement of means to ensure fairness and consistency.

 

(Moved by Councillor S Smith and seconded by Councillor M Summers)

 

Following a discussion Cabinet did not approve the recommendations from Corporate Scrutiny. 

 

 

RESOLVED

That Cabinet

 

1.      

Cabinet notes the recommendations set out in the Campbell Tickell report at Appendix 1 and specifically endorses the recommendations from that report for implementation. Details on the specific recommendations contained within the report are set out in the Executive Summary. (see report at Appendix

1)      

2.      

endorses and reaffirms the recovery of sums related to Leasehold Service charge invoices in accordance with the Corporate Credit Policy (previously approved by Cabinet on 31st August 2023)

 

3.      

Cabinet approved the development of a service improvement plan that considers the timing and resources required to implement the recommendations set out at point 1 above. (see draft at Appendix 2)

 

4.      

Cabinet approved the commencement of remedial works in line with the surveys that have been completed, this would include commencement of consultations and the issuing of invoices upon completion.

 

5.      

Cabinet approves the use of Campbell Tickell to assist in the development of the Leaseholder Policy [recommendation (d) in Campbell Tickell report]

 

6.      

Cabinet approves the updated s20 notices produced by Campbell Tickell [recommendation (a) in Campbell Tickell report] (see Appendix 3)

 

7.      

Cabinet approves the responses to matters referred to Cabinet as set out in the table in the report; and

 

8.      

Cabinet approves taking a test case through the First Tier Tribunal to test assumptions in relation to component renewal. This will be subject to identifying one or more Leaseholders who are willing to participate in such a test case and is likely to take place once further engagement mechanisms are in place with Leaseholders.

 

 

(Moved by Councillor B Clarke and seconded by Councillor D Foster)

 


Meeting: 09/10/2024 - Corporate Scrutiny Committee (Item 49)

49 Update on Strategic Review of Leasehold Service Charges pdf icon PDF 158 KB

(Committee to consider the Report of the Portfolio Holder for Housing, Homelessness and Planning/Executive Director Communities, which is due to be presented at Cabinet on the 10th October 2024)

Additional documents:

Minutes:

Councillor Hadley left the meeting for the discussion on this item.

 

The Chair welcome the Portfolio Holder for Housing, Homelessness and Planning and the  Executive Director Communities to discuss the report to provide an update on the work done by Campbell Tickell in relation to Leasehold Service Charges and sets out a series of recommendations in relation to that report. The Interim Section 151 Officer and the Recoveries Manager were also in attendance for this item.

 

The Portfolio Holder introduced the report highlighting that further to the discussion at the last Scrutiny meeting that recommendation 4 had been amended.

 

The Committee made the following comments/observations and asked the following questions:

 

Ø  Clarification around what repairs were required for the affected Leaseholders.

The Officer confirmed that following assessment by Campbell Tickall (CT), the majority of roofs had been assessed as needing repairs which could extend their lifespan before replacement being needed by approximately 10 years subject to reinspection after 5 years.

 

The Committee then addressed each recommendation that was being made to Cabinet for comment

 

Ø  Recommendation 1:

Were Cabinet being asked to endorse the all the recommendations made by CT?

Ø  Officers confirmed that they were looking for Cabinet to endorse all of the of CT recommendations except for the ones relating to the extending of payments terms and loans, which they were not looking to carry forward.

Ø  Recommendation 2:

Clarification was sought from Officers who confirmed that the Corporate Credit Policy laid out terms for debts and where a debtor had means to pay they would expect them to, however the recovery team could look at individual circumstances to offer a payment plan of up to 12 months as standard, but that a longer term could be offered where appropriate subject to an assessment of individual circumstances, supported by proof of income and expenditure. It was also confirmed that the option to place a charge on the property can be used when required.

The Committee expressed concern at assessing on an individual basis as this may lead to inconsistent decisions.

Discussions were had around whether it was made clear that a payment plan was available, and Officers confirmed that they needed to ensure they were collecting income on a timely basis and not incurring administration costs, and that spreading the cost was not an option for everyone and therefore they needed to make sure this wasn’t taken advantage of, however invoices did state that that if you were struggling to pay to get in touch with the recovery team.
Following discussion around whether the letters to residents should state that a payment plan should be offered the Committee agreed that as not everyone would be eligible for a payment plan that it should state that if they are having financial difficult that they should talk to the Council as soon as possible to look at what arrangements.

It was confirmed that there was some general advice on the invoice but that something could be added to the covering  ...  view the full minutes text for item 49