Leasehold information
The leasehold on your property may be owned by us, so although you own the bricks and mortar, the land it's built on can often be owned by us, or another organisation or person.
Information about increasing our service charges
We always try to keep our charges as affordable as possible, but rising costs have meant we've had no choice but to increase our service charges from 1 April 2024. To help you understand the changes we've created a useful FAQ to help answer any questions you may have.
If you want to speak to us directly you can fill out our Contact Us form or call us on 0330 355 1000.
Leaseholders
We offer a wide range of homes on a leasehold and Shared Ownership basis. If you want to find out more about your leasehold home, or are interested in one of our leasehold or Shared Ownership homes, this section is designed to help you with any questions you have.
What is a leasehold?
When buying a leasehold property, you are buying the rights to the property (not the land rights) for a specified amount of time, but not buying the property/land itself which in this case is owned by One Manchester (the freeholder/or landlord). Buying a leasehold property means that before the lease reduces in length too far, for example below 80 years, then you need to apply to extend the lease, otherwise eventually, at the end of the lease period, it will revert to the ownership of the freeholder/landlord, One Manchester.
Your lease is the legal agreement between you One Manchester, it sets out your rights and responsibilities as a leaseholder and those of One Manchester as the freeholder/landlord. When you purchase a flat or a maisonette in a block, you purchase a leasehold interest and One Manchester keeps the freehold interest. Where One Manchester is the freeholder, we own the land on which your property is built, and we therefore charge a ground rent alongside our service charges. The lease states what parts of the property you own and what rights over communal land you have. This is called the ‘demised premises’ and will be identified by address and by a plan or plans attached to the lease.
Can I extend the lease on my property?
Yes, most leaseholders have the right to extend the term of their lease if they have a long lease over 21 years. The usual extension term is 90 years. You must have owned the property for at least two years. The value of the extension has to be agreed by One Manchester, if this isn’t possible the First Tier Tribunal can be asked to determine the value.
Can I buy the freehold?
All flat leaseholders have a legal right to buy the freehold of their block in certain circumstances. This will make leaseholders responsible for all management and maintenance of their block. This is also known as ‘Enfranchisement’. The freehold can be bought in any building of two or more flats where at least two-thirds of the flats are owned by leaseholders. Leaseholders who want to buy the freehold must represent at least half the total number of flats in the block. For further information speak to us, The Citizens Advice Bureau or an independent legal representative.
Can I get a copy of my lease?
Yes, if you’ve lost your lease and you have a mortgage, you can contact your mortgage lender to ask for a new copy of your lease, they should be able to give you a copy. You could also speak to the Land Registry to ask for a copy. If you don’t have a mortgage, or if your lender is unable to help, you can request a copy from us.
What are leasehold admin fees?
As part of the purchase of a leasehold property where we’re the freeholder or landlord there are certain administration charges and fees we’re required to charge. The following fees are payable in relation to legal requirements on a sale or purchase of a leasehold property where One Manchester Limited is the freeholder/landlord:
• Leasehold Property Enquiry Form (LPE1)
• Deed of Covenant
• Notice of Transfer/Notice of Assignment
• Certificate of Compliance
• Notice of Charge
Leasehold property enquiry form (LPE1) - £200
When any leasehold property is sold, the lease administrator (usually the Landlord, Managing Agent or Management Company) completes replies to the Leasehold Property Enquiry form (LPE1) to provide information to the prospective purchaser on the property at the expense of the seller. In this case One Manchester Limited, as the landlord, will complete this form and provide any supporting documentation.
Deed of Covenant
A covenant is a legal promise that you will carry out certain acts or refrain from doing certain things. There are two types: positive and negative covenants. Positive covenants are acts that you must carry out such as paying service charges, keeping the property in good repair, and so on. Negative covenants however stop you doing certain acts with the property such as not allowing you to carry out illegal acts or cause a nuisance, or not allowing you to run a business from home. So, it is important that you read the covenants in your lease carefully so that you understand what restrictions apply when you agree to buy a leasehold property. Most leases today state that a Deed of Covenant is required upon any transfer, assignment or underletting of the property. Since this deed forms one of the obligations in the lease, failure to enter such a deed amounts to a breach of the lease.
Notice of transfer agreement - £85.00
This is a formal notice that is issued by the new Leaseholder (your solicitor will do this) as the Lease states the Landlord must be informed when the owner changed. The name of the notice can vary but they are basically providing the same information. One Manchester Limited will then end the previous leaseholder’s account on our computer database, add your details as the new owner(s) and set up an account for you.
Certificate of compliance - £85.00
Sometimes the landlord places a restriction on the official copy of the register of title of a leasehold property they own held at the Land Registry and it is this restriction which a Certificate of Compliance is concerned with.
The restriction, which in theory can be wide in scope, normally needs to be ‘unlocked’ by the would-be buyer entering into a Deed of Covenant, which must be signed and witnessed, and which states various restrictions and conditions which the new buyer must comply with which were in the original lease.
The Deed of Covenant is a signed, witnessed statement from the buyer that they will comply with the aforesaid restrictions and conditions that the previous leaseholder had agreed to having been bound by.
The Certificate of Compliance itself is actually issued by the landlord/management company, once they are satisfied that you and your solicitor have done all you can to abide by any conditions or restrictions or have carried out any necessary actions. The landlord/management company issue the Certificate of Compliance to your solicitor to submit to Land Registry; this satisfies the restriction, and the new leaseholder can then proceed with registration of their title with Land Registry.
Notice of Charge - £85.00
This is a notice confirming that a mortgage has been secured as a charge against the property at the land registry. This notice should be served alongside the notice of transfer if you are registering a purchase.
Administration Charges - Summary of tenants' rights and obligations
1. This summary, which briefly sets out your rights and obligations in relation to administration charges, must by law accompany a demand for administration charges. Unless a summary is sent to you with a demand, you may withhold the administration 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. An administration charge is an amount which may be payable by you as part of or in addition to the rent directly or indirectly - for or in connection with the grant of an approval under your lease, or an application for such approval; for or in connection with the provision of information or documents; in respect of your failure to make any payment due under your lease; or in connection with a breach of a covenant or condition of your lease. If you are liable to pay an administration charge, it is payable only to the extent that the amount is reasonable.
3. Any provision contained in a grant of a lease under the right to buy under the Housing Act 1985, which claims to allow the landlord to charge a sum for consent or approval, is void.
4. You have the right to ask a First-tier Tribunal (Property Chambers) (previously the Leasehold Valuation Tribunal) whether an administration charge is payable. You may make a request before or after you have paid the administration charge. If the tribunal determines the charge is payable, the tribunal may also determine - Who should pay the administration 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 this right where - a matter has been agreed to or admitted by you; a matter has 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 administration charge arose; or a matter has been decided by a court.
5. You have the right to apply to a First-tier Tribunal (Property Chambers) for an order varying the lease on the grounds that any administration charge specified in the lease, or any formula specified in the lease for calculating an administration charge is unreasonable.
6. Where you seek a determination or order from a First-tier Tribunal, you will have to pay an application fee and, where the matter proceeds to a hearing, a hearing fee, unless you qualify for a waiver or reduction. The total fees payable to the tribunal will not exceed £500, but making an application may incur additional costs, such as professional fees, which you may have to pay.
7. A First-tier Tribunal (Property Chambers) has the power to award costs, not exceeding £500, against a party to any proceedings where - it dismisses a matter because it is frivolous, vexatious or an abuse of process; or it considers that a party has acted frivolously, vexatiously, abusively, disruptively or unreasonably. The Upper Tribunal has similar powers when hearing an appeal against a decision of a First-tier Tribunal (Property Chambers).
8. 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, a 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.
Factsheet of administration fees
This factsheet lists the administration fees that are payable to us for specific services or transactions provided to homeowners. We’re unable to progress your request without this fee. These are not included in the annual service change management fee.
• LPE1 Enquiries (houses with services) - £200
• LPE1 Enquiries (houses no services) - £100
• Shared ownership assignments (re-sales) - £200
• Staircasing admin fees - £100
• Remortgage Applications - £85
• Notice of transfer / Notice of Assignment - £85
• Notice of charge - £85
• Deed of covenant admin fee - £85
• Copy of lease from Land Registry - £30
• Copy of lease if held electronically by One Manchester - £15
• Copy of Insurance policy document - £15
• Lease extension admin fee - £200
• Enfranchisement admin fee (per unit) - £200
• Home improvements / alterations (permission request - basic) - £50
• Home improvements / alterations (permission request – complex) - £100
• Retrospective consent for alterations (basic) - £100
• Retrospective consent for alterations (complex) - £200
• Deed of postponement - £50
• Deed of variation/rectification administration fee - £85
• Supply certificate of compliance - £85
• Issue of Notice of Forfeiture - £50
• Copy of Fire Risk Assessment - £15
• Copy of EWS report - £15
• Provide Consent i.e subletting, pets etc - £50
• Copy of Accounts - £15
Administration Charges - Summary of tenants' rights and obligations
1. This summary, which briefly sets out your rights and obligations in relation to administration charges, must by law accompany a demand for administration charges. Unless a summary is sent to you with a demand, you may withhold the administration 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. An administration charge is an amount which may be payable by you as part of or in addition to the rent directly or indirectly - for or in connection with the grant of an approval under your lease, or an application for such approval; for or in connection with the provision of information or documents; in respect of your failure to make any payment due under your lease; or in connection with a breach of a covenant or condition of your lease. If you are liable to pay an administration charge, it is payable only to the extent that the amount is reasonable.
3. Any provision contained in a grant of a lease under the right to buy under the Housing Act 1985, which claims to allow the landlord to charge a sum for consent or approval, is void.
4. You have the right to ask a First-tier Tribunal (Property Chambers) (previously the Leasehold Valuation Tribunal) whether an administration charge is payable. You may make a request before or after you have paid the administration charge. If the tribunal determines the charge is payable, the tribunal may also determine - Who should pay the administration 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 this right where - a matter has been agreed to or admitted by you; a matter has 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 administration charge arose; or a matter has been decided by a court.
5. You have the right to apply to a First-tier Tribunal (Property Chambers) for an order varying the lease on the grounds that any administration charge specified in the lease, or any formula specified in the lease for calculating an administration charge is unreasonable.
6. Where you seek a determination or order from a First-tier Tribunal, you will have to pay an application fee and, where the matter proceeds to a hearing, a hearing fee, unless you qualify for a waiver or reduction. The total fees payable to the tribunal will not exceed £500, but making an application may incur additional costs, such as professional fees, which you may have to pay.
7. A First-tier Tribunal (Property Chambers) has the power to award costs, not exceeding £500, against a party to any proceedings where - it dismisses a matter because it is frivolous, vexatious or an abuse of process; or it considers that a party has acted frivolously, vexatiously, abusively, disruptively or unreasonably. The Upper Tribunal has similar powers when hearing an appeal against a decision of a First-tier Tribunal (Property Chambers).
8. 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, a 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.
Will I be consulted about major work going on in or around my home?
Yes, all our leaseholders must be consulted before any major repairs, external and communal area decorations are carried out in and around their building, if the charge to the leaseholder is over £250. So don’t worry, we will be in touch before any major works, planned repairs, improvement works or decoration to your building is carried out.
What are major works?
Major works are different from the ‘day-to-day’ repairs. They’re always planned except in emergency situations. These are needed when major parts of the building or area wear out, pathways or roofs, or when decorations are planned for the outside or shared areas inside, such as stairways. Sometimes it is more cost effective for us to carry out 'associated works' which means sets of work together, this may include repairing or renewing door and window frames, gutters, or mending broken railings at the same time.
Do I have to contribute to major repairs?
All leaseholders contribute towards the cost of major repairs and for the cost of external and communal area decorations.
Can I have a say in what work is done to my home?
Yes, you can take part in consultation about major works and improvements to your home and the area where you live. We’ll involve you as much as possible in planning our Major Repair and Improvement Programme. Our planned programme each year will be based on the repair and improvement needs of our buildings and the budget available to complete the work.
Consultation requirements
Yes, we’re required to consult with you before carrying our any works in your area when the cost is over £250 per leaseholder. This is your legal right and is called ‘Section 20 Consultation’. If the works are urgent and require being carried out immediately, we may have to carry them out without consulting with you beforehand.
Section 20 consultation
• Letter 1: Notice of Intent. Details of work to be carried out. You are given 30 days consultation.
• Letter 2: Notice Of Estimates – Details of a minimum of two quotes received and an estimate of the size of the individual leaseholder’s contribution. You are given a further 30 days consultation.
• Letter 3: Notice of Award Of Contract – If we have decided not to go for the cheapest quote, we must state reasons to you for doing so
• As a leaseholder, you will then have time to make comments during the consultation process. We’ll consider these comments and respond to them. Work can only start once this process has been completed. If a lot of work is being planned, we’ll also meet with you and any recognised residents’ associations prior to starting the section 20 consultation process.
Can I sell my property?
Yes, as a leaseholder you’re able to sell your property, although you may have to first offer One Manchester the opportunity to buy back the property within a set timeframes. For further information please check your lease.
If you’ve purchased your property under the Right to Buy or Right to Acquire scheme, you may have to repay some or all of the discount you received, if you purchased your home within the last five years.
We may still be interested in buying your property even if you are outside of the usual time frames.
The amount of discount you have to pay back is a percentage of the property value on resale. This figure will be reduced by 20% for each full year after the original date of completion of the sale. If you want to know if you need to pay any discount back, please contact our leasehold team.
Leaseholder and Shared Owner guidance
In an emergency you should take any immediate action required to protect your property from further damage, such as boarding up, switching off gas, water or electricity.
Please note that for a claim to be considered the damage must have occurred within the policy period and have been caused by an event the policy covers e.g. fire, water, storm, theft etc.
Refer to your policy summary for details of insured events. Any settlement will be subject to the deduction of any applicable policy excess.
Buildings insurance only applies to the structure of the building and not the contents within the property. As a leaseholder it is your responsibility to source your own contents insurance.
Guidance notes for One Manchester leasehold and Shared Ownership customers
What to do if you use your own contractor
When making a claim you can appoint your own contractor, to undertake repairs, to do so you need to complete the following steps:
- Complete the Arthur J Gallagher claim form (Please find a link at the bottom of this page).
- Make sure you get two competitive written estimates for the repairs required before choosing a contractor.
- Send these estimates/ quotes to Arthur J Gallagher for consideration under the terms of your policy.
- If your claim is accepted Arthur J Gallagher will contact you to confirm that you may proceed with the repairs.
- Upon completion of repairs please forward the final invoice to Arthur J Gallagher Housing confirming that you are satisfied with the repairs and explain who the settlement cheque should be made payable to.
- Alternatively, if you’re having difficulty in obtaining two competitive estimates, please return your completed claim form and Arthur J Gallagher will appoint an approved Building Repair Network contractor to inspect and assess the repairs required.
- Once you’ve sent your confirmation, Arthur J Gallagher will arrange for your settlement to be issued.
- If you have any queries, please do not hesitate to contact Arthur J Gallagher by calling 01245 341200.