Shared Ownership customers who pay rent and service charge

1. This summary, which briefly sets out your rights and obligations in relation to variable service charges, must by law accompany a demand for service charges. Unless a summary is sent to you with a demand, you may withhold the service charge. The summary does not give a full interpretation of the law and if you are in any doubt about your rights and obligations you should seek independent advice.
2. Your lease sets out your obligations to pay service charges to your landlord in addition to your rent. Service charges are amounts payable for services, repairs, maintenance, improvements, insurance or the landlord’s costs of management, to the extent that the costs have been reasonably incurred.
3. You have the right to ask the First-tier Tribunal to determine whether you are liable to pay service charges for services, repairs, maintenance, improvements, insurance or management. You may make a request before or after you have paid the service charge. If the tribunal determines that the service charge is payable, the tribunal may also determine –  

who should pay the service charge and who it should be paid to;

the amount;

the date it should be paid by; and

how it should be paid.

However, you do not have these rights where —

a matter has been agreed or admitted by you;

a matter has already been, or is to be, referred to arbitration or has been determined by arbitration and you agreed to go to arbitration after the disagreement about the service charge or costs arose; or

a matter has been decided by a court.

4. If your lease allows your landlord to recover costs incurred or that may be incurred in legal proceedings as service charges, you may ask the court or tribunal, before which those proceedings were brought, to rule that your landlord may not do so.

5. Where you seek a determination from the First-tier Tribunal, you will have to pay an application fee and, where the matter proceeds to an oral hearing, a hearing fee, unless you qualify for fee remission or exemption. Making such an application may incur additional costs, such as professional fees, which you may have to pay.

6. The First-tier Tribunal and the Upper Tribunal (in determining an appeal against a decision of the First-tier Tribunal) have the power to award costs in accordance with section 29 of the Tribunals, Courts and Enforcement Act 2007.

7. If your landlord —

proposes works on a building or any other premises that will cost you or any other tenant more than £250, or

proposes to enter into an agreement for works or services which will last for more than 12 months and will cost you or any other tenant more than £100 in any 12-month accounting period,

your contribution will be limited to these amounts unless your landlord has properly consulted on the proposed works or agreement or the First-tier Tribunal has agreed that consultation is not required.

8.    You have the right to apply to the First-tier Tribunal to ask it to determine whether your lease should be varied on the grounds that it does not make satisfactory provision in respect of the calculation of a service charge payable under the lease.

9.   You have the right to write to your landlord to request a written summary of the costs which make up the service charges. The summary must—

cover the last 12-month period used for making up the accounts relating to the service charge ending no later than the date of your request, where the accounts are made up for 12-month periods; or

cover the 12-month period ending with the date of your request, where the accounts are not made up for 12-month periods.

The summary must be given to you within 1 month of your request or 6 months of the end of the period to which the summary relates whichever is the later.

10. You have the right, within 6 months of receiving a written summary of costs, to require the landlord to provide you with reasonable facilities to inspect the accounts, receipts and other documents supporting the summary and for taking copies or extracts from them.

11. You have the right to ask an accountant or surveyor to carry out an audit of the financial management of the premises containing your dwelling, to establish the obligations of your landlord and the extent to which the service charges you pay are being used efficiently. It will depend on your circumstances whether you can exercise this right alone or only with the support of others living in the premises. You are strongly advised to seek independent advice before exercising this right.

12. Your lease may give your landlord a right of re-entry or forfeiture where you have failed to pay charges which are properly due under the lease. However, to exercise this right, the landlord must meet all the legal requirements and obtain a court order. A court order will only be granted if you have admitted you are liable to pay the amount, or it is finally determined by a court, tribunal or by arbitration that the amount is due. The court has a wide discretion in granting such an order and it will take into account all the circumstances of the case.

IMPORTANT PLEASE READ – WHAT YOU NEED TO DO

Standing Orders and Online Banking  

If you pay your own rent and pay by standing order or via online banking, please change the amount that has been set up to the new rent above as soon as possible. 

Direct Debits  

If you pay by Direct Debit, we’ll make the changes for you. In addition, you will receive a separate letter from Allpay to confirm your Direct Debit has been updated – we would ask you check this letter. If you do not receive one or want us to double check your Direct Debit payment, contact our Income Team via our contact us form.

Universal Credit  

If you receive the housing element of Universal Credit, you must let the Department of Works and Pension (DWP) know about the increase in your total weekly payment by updating your Journal on the day of the increase Monday 3rd April 2024. Do not update your Journal before this date because the DWP will not recalculate your entitlement with your new rent amount.  

Housing Benefit  

If you currently receive Housing Benefit directly into your rent account, the total weekly charge will be updated automatically. We’ll let your local authority benefits department know of the change and they will update your Housing Benefit entitlement. If you have Housing Benefit paid into your bank account, please tell the benefits department about the change as soon as possible.  

It’s really important that you let them know as soon as possible to avoid any underpayments which may lead to arrears on your rent account.  

This letter and the additional documents are sent to you by One Manchester Limited of Lovell House, 6 Archway, Hulme, Manchester M15 5RN.

What if I need help?  

We’re here to help – If you have any questions or concerns about paying your rent, please get in touch as soon as possible by using the contact us form on our website, or by calling 0330 355 1000.  

There is lots of useful information on our money and benefits advice website pages, or you can contact the Financial Inclusion Team on 0330 355 1000.  

Alternatively, you can contact:  

Citizens Advice 03444 111 444  

Shelter 03301 755 121  

Cost of living support

To support our customers to combat the increasing cost of living, last year we set up our Thrive Fund. The Fund is here to support you to purchase things you are struggling to afford and feel you need, such as furniture or school uniforms. All the information you need to apply for support through the Thrive Fund can be found on our website.