Right To Buy Leaseholders

As a leaseholder you have bought the right to live in your property for a fixed number of years. The first flat sold in a block will have a lease for 125 years. For all subsequent sales in the block the lease date and term of 125 years will start from the date of this first sale. The flat can be bought and sold during that term. The Lease (your leasehold agreement) is a legal contract that contains your rights and obligations as a leaseholder and the Council’s rights and obligations as the owner of the Freehold.

• The right to information about the landlord
• The right to seek recognition for a Recognised Tenants Association (RTA)
•  The right to information about service charges and the right to challenge the reasonableness for those charges
• The right to be consulted about major works and long term agreements
• The right to information about insurance
• The right to a management audit

It is a condition of your lease that you must not:

• Carry out any structural alteration to your home without first obtaining Wealden District Council’s written consent
• Do anything or allow anything to be done that may be a nuisance or inconvenience to Wealden District Council or your neighbours
• Use your home for any trade, profession or business
• Use your home for any illegal, immoral or improper purpose
• Display any trade, profession or business notice or advertisement on the outside of your flat or on part of the common entrance hall, staircases, landings or passages
• Place any window boxes or plants on windowsills or balconies without our written permission
• Fix any external wireless or television aerial including television satellite dishes or other apparatus to the outside of your home without the prior approval of Wealden District Council
• Play any musical instrument or equipment to cause annoyance to your neighbours
• Park any vehicle, caravan, boat or the like within the precincts of the buildings except a vehicle in any parking space designated by Wealden District Council

The Council insures the building against loss or damage by fire and other risks as necessary to the full rebuilding cost (Buildings Insurance). The cost of the buildings insurance is recoverable from you on an annual basis in advance under the terms of your lease.

The Council does not insure your furniture and belongings against theft, fire, vandalism, burst pipes and other household risks. It is therefore important that you take out Home Contents Insurance.

You are entitled to rent out (sub-let) your property with the permission of the Council and your mortgage lender.

Leaseholders have to pay their flat’s share of the Council’s costs of maintaining the block and providing services to all the residents in it. This is called the leasehold account. The leasehold account is made up of service charges and administration costs.

Service charges are payments by the leaseholder to the landlord for all services provided to your block of flats and are payable yearly in advance within 21 days of receipt of your bill. Your service charge includes your contribution for Communal Lighting, Cleaning of Communal areas, Grounds Maintenance (apportioned pro-rata on size of grounds).

You will also receive an invoice for Ground Rent in April, this is rent charged to every leaseholder by the council. It is due yearly in advance and is written into your lease as a fixed sum of £10.00.

The Service Charge also includes an element for each of:

• Itemised repairs
• Painting and pre-painting repairs
• Management charge (10% of the service charge)
• Buildings Insurance

Leaseholders own and are responsible for the maintenance and repair of everything inside their home or which relates solely to it. Responsibility also extends to ensuring the health and safety of their own appliances and they should ensure that their gas appliances (boiler, fires etc.) are serviced on a yearly basis by a registered engineer. In addition a qualified NICEIC Electrician should carry out electrical repair checks.

Wealden District Council needs to be notified of any mortgage or re-mortgage relating to your property. The Solicitors or Mortgage Company dealing with the mortgage.

Wealden wants to involve as many residents as possible in what happens in their area. We therefore aim to encourage and facilitate opportunities for every tenant/resident to become involved in the decision making process to the degree and level they choose. To get more information see the  section.

This Guidance refers to restrictions under Section 157 Housing Act 1985 which affect ex-council houses that were bought under the right-to-buy scheme in Wealden and are located within the High Weald Area of Outstanding Natural Beauty (AONB) or South Downs National Park (SDNP) area.  

What does the restriction / covenant mean? 

Prospective purchasers must have  lived (which means having his/her/their principal home) and/or worked in the AONB or SDNP area for three years immediately before the date of the proposed purchase of the property. If these conditions are met then the Council must give its consent. 

What does this mean? 

On any sale of or assignment of a lease of a property to which the restriction applies, you must obtain the Council’s written consent to the sale. If you don’t, the Land Registry will not register the transaction and the sale will be void. Please see housing@wealden.gov.uk for details of how to apply for consent. 

Which properties does this apply to? 

This applies to properties within the High Wealden AONB and SDNP which were bought under the ‘Right to Buy’ Scheme from Wealden District Council after 1985. 

Does this apply to ex-Council houses in all areas within Wealden? 

No – it will usually apply to the ones in the High Weald Area of Outstanding National Beauty (AONB), or South Downs National Park (SDNP) area. 

What areas are within the High Wealden AONB and South Downs National Park?  

For a detailed map of the areas the restriction may apply to, open Magic Map Application, open ‘Designations’ – ‘Land-based Designations’ – ‘Statutory’  – ‘Areas of Outstanding Natural Beauty (England)’ and ‘National Parks (England)’. 

Does the restriction apply even though I did not buy the house from the council?  

The Section 157 restriction is a life-time covenant and stays with the ex-council property whether you are the first buyer or subsequent ones.  

Why do I need consent?  

On the sale or assignment of lease of a property to which the restriction applies these rural ex-council houses can only be transferred with the council’s consent. If written consent is not obtained the Land Registry will not register the transaction and the sale will be void.  

Why were these restrictions imposed?  

All ex-council properties are restricted to use as a main residence and not as a second or holiday home. The Section 157 restriction was designed to help local properties to be available and affordable to local people. This is important in areas like Wealden where house prices are high and often unaffordable to local people. 

I’m selling or renting a property subject to the restriction – what should I do? 

Properties subject to the Section 157 restriction should be marketed solely to local people for a minimum period of 8 weeks before the Council will consider an application for consent from a person who does not automatically qualify for it.  

Make sure your Estate Agent includes the rural area restriction in the Property Particulars – reducing the risk of a sale falling through because the Council will not give its consent. Ask your Solicitor to check your Deeds at an early stage to see what restrictions may apply. 

What do I need to do if my property has a s.157 Restriction?  

Once you’ve selected an Estate Agent tell them about the restriction.  

Your solicitor should examine the Deeds at an early stage to identify any relevant restrictions.  

Details of the restriction need to be clearly advertised in the marketing details to reduce the risk of the sale falling through because the Council will not give consent. Your estate agent should include the following text on the property advert.  

“S.157 Housing Act 1985 – [INSERT PROPERTY ADDRESS] was formerly part of the Local Authority housing stock and as such contains a restrictive covenant which requires consent to purchase from the Local Authority. It is understood that any purchaser (or tenant) who has lived and worked in Wealden within the High Weald Area of Outstanding Beauty / South Downs National Park area for at least the last three years immediately prior to the purchase or rental, would qualify for automatic consent. Other applications may be considered on merit following a minimum of 8 weeks marketing.” 

Once you have appointed estate agents you are required to notify Wealden District Council at housing@wealden.gov.uk 

Please ensure that you tell us:  

1. Your name(s) 
2. The Estate Agent details 
3. Full address of the property to be marketed 
4. When the marketing will commence 
5. Provide a web link to the marketing material (ie. Right Move / Zoopla Web link) 

Someone wants to buy or rent out my property. What should I do now?  

When you have secured a buyer, you or your solicitor must contact the Council’s Housing Legal team at housing@wealden.gov.uk and provide evidence of the buyer or tenant’s supporting evidence detailed below.  

What supporting evidence is needed?  

Utility bills, copies of Electoral Roll or council tax bills and/or letters from employer(s) confirming continuous employment in Wealden in the High Weald AONB or South Downs National Park area (as applicable) are acceptable.  

How do the purchasers qualify for automatic consent?  

Automatic consent is granted where prospective purchasers either live (i.e. their principal home) and/or work within Wealden in the High Weald AONB or SDNP (whichever the property is located in) continually for three years immediately prior to the proposed purchase of the property. 

Can the purchaser buy an ex-council house if their partner does not qualify?  

Yes, a property can be bought in joint names with only one person meeting the qualifying conditions. However, the qualifying person’s name must be included in the Deeds.  

Can the purchaser buy an ex-council property if they do not meet the qualifying criteria?  

Yes, the council has discretion to grant consent for the sale after the initial eight week marketing period.  

Additional information  

Is this the only restriction on buying and selling ex-Council houses? 

Not necessarily, there may be other restriction  

• All ex-Council properties are restricted to use as a main residence and not as a second or holiday home. 

• Building Plots: the garden of an ex-Council house may be large enough to build a second dwelling on. We consider that building a second house on the plot does not, in itself, breach the ‘rural area’ covenant. However, both the old and the new property will be subject to all of the covenants applying to the land including the ‘main residence’ covenant, if applicable. We don’t normally agree to the release of such covenants in relation to development land. 

• Covenant preventing alterations: most ex-Council properties have a covenant preventing alterations. The Council may agree to release these covenants depending on the property and its location. The person requesting the release must pay our costs. 

Check with your solicitor if your house is subject to other restrictions. 

What if I rent out my property?  

The section 157 restriction also applies to the renting or letting of these properties, prospective tenants must have lived and/or worked in Wealden in the High Wealden AONB or SNDP  for the preceding three years.  

Is there any exception when consent is not needed?  

The Council’s consent may not be needed if the property is being transferred from joint to sole name (or vice versa) or is inherited under a will or intestacy. 

I am having problems selling my ex-council house because of the restriction – what can I do? 

It is likely that the restriction will reduce the value of the property. The restriction would have been taken into account in the price paid when the property was first sold, and initial and any subsequent purchasers should have been fully aware of the restriction when they bought the property. 

You may sell your home whenever you like. You should inform the Council of your intention to sale, although you do not need the Council’s permission. However, you must inform the Council of the change in ownership and the purchaser’s solicitors must send a Notice of Transfer giving the new owner(s) details together with a payment of £25 for the registration fee. This should be sent to the Council’s Legal Department at Vicarage Lane, Hailsham, BN27 2AX. For sale signs are only allowed with permission from the Leasehold & Right to Buy Officer.

All sellers are required to get an energy performance certificate (EPC), showing how energy efficient a property is, within 28 days of putting their home on the market.

If you applied for the Right to Buy on or after 18th January 2005 and sell within five years of buying you will have to repay some or all of the discount that you received.