2.0. Service delivery and provision of
We will deliver services in accordance with the Genesis service
standard, our policies and internal procedures. We will provide all
customers with a handbook which will include information and
guidance on housing management, explaining the lease, service
charges, leasehold services and Section 20 consultation.
Staff responding to leasehold management queries will be
sufficiently trained to respond to our customers enquiries in
relation to the full range of leasehold matters detailed within
Information on performance and other matters will be
communicated through resident publications including newsletters as
well as via our website at www.genesisha.org.uk .
3.0. Administration charges
Administration charges will be charged where they are provided
for within the lease.
We will also charge administration charges for services we
provide the leaseholder that are not specified in the lease, for
example the cost incurred to Genesis due to re-mortgaging. We will
notify leaseholders of the estimated costs of services before we
We will set administration charges at market rates, complying
with the statutory and contractual requirements. The fees we charge
will be monitored against the other social housing providers within
the G15 group of social landlords and through feedback from the Low
Cost Homeownership Group
4.0. Management fees
We will charge a management fee for managing the provision of
services in accordance with the lease. We have standardised our
management fee structure to a tiered system. Charges are now set
according to the number of services provided to the
5.0. Service charges and accounting
Service charges will be levied in accordance with our Service
charge policy, the content of leases and current legislation and
regulation. Where we are the superior landlord we will charge for
our services in accordance with the lease.
In cases where we pay service charges to a superior landlord, we
will derive the service charges to our customers from these
invoices. We seek to establish a good working relationship with
superior landlords and their agents in order to protect the
interests of our customers and produce a coherent, value for money
Service charge arrears will be dealt with in accordance with our
Income collection: leasehold policy.
6.0. Ground rent
We will observe the statutory requirements in respect of ground
rent demands as provided within the Commonhold and Leasehold Reform
Act 2002. A lease for a residential property may specify that the
leaseholder is obliged to pay ground rent to the freeholder.
The amount of ground rent payable, the date(s) it is due, and
any provisions to review the amount will be set out in the lease.
If a lease does not specify that ground rent is payable, none will
be charged. In some leases the amount of ground rent is specified
as ‘a peppercorn’, a legal expression that means ‘nil’.
The due date(s) for ground rent may differ from those for
Where the lease provides for ground rent to be increased during
the terms of the lease it may either;
- specify the revised amounts, and when they come into force
- have a formula by which the new amount is calculated, and the
For all properties where ground rent is to be collected, ground
rent demands will be sent no more than 30 days in advance of the
due date. Our ground rent statements will comply with the
requirements of the Commonhold & Leasehold Reform Act 2002.
Ground rent for new leases will be set at the prevailing market
rate for the type and size of the subject property in the area,
unless we are precluded from doing so by the terms of a contract,
or a covenant or restriction on the land. This will ensure that the
value of the freehold interest is maximised.
7.1. Section 20
We will observe the statutory requirements for consultation
under Section 20 of the Landlord and Tenant Act 1985 (as amended).
This requires Genesis to consult our customers on:
- Proposed major repairs or improvements for which they will be
required to pay
- Proposed changes to contracts for long term maintenance
The statutory consultation procedure will comply with the
regulations set out by the HCA.
7.2. Service charges
We will also consult service charge payers in accordance with
our Service charge policy.
7.3. Deed of variation
We manage leasehold properties occupied under a variety of
different leases. On occasions it may be desirable to seek to amend
- To reduce the number in use
- To provide a uniform format
- To enable services available to some leaseholders to be
provided to others
The terms of leases will only be varied following consultation
and with agreement of the leaseholders involved and, where
appropriate, their mortgagees, and where there is provision within
the lease to do so.
8.0. Customer involvement
We will provide our leasehold customers with opportunities for
involvement and consultation via a number of Genesis customer
forums. We also encourage and support residents’ associations.
9.0. Pre-assignment enquiries
Genesis will provide a pre-assignment enquiry pack to all
customers planning on assigning the lease of their property. This
information will also be provided to potential purchasers before
contracts are exchanged.
Where the freehold is owned by the customer, and there is a
covenant in the freehold transfer for them to pay service charges,
the customer will be required to make similar pre-assignment
The pre-assignment pack will include:
- Current balance on major works and service charge accounts
- Past and present service charge accounts
- Buildings insurance schedule and policy cover
- Section 20 consultation and planned maintenance works
- Requirements for assigning the lease
- Health and Safety reports
10.0. Leasehold Retirement Schemes
Retirement housing is solely for occupation by people over a set
age, as set out in the lease for the property. Typically,
retirement leases will have clauses limiting the age, category of
persons and restricting who the property can be sold or sublet
The lease may also provide for a resident warden
system/caretaker or house manager’s flat which may incur a charge
to the leaseholder. They may also often contain exit fee clauses
which apply at the time of sale or subletting.
11.0. Adding and transferring a lease
Leaseholders are able to add another party to their lease, in
order to share the legal title of the property. In cases where the
property is not owned outright, the prospective leaseholder
applicant must meet HCA guidelines on home ownership.
The original leaseholders remain fully liable for any outgoings
and all breaches of covenant etc. until the new leaseholder has
been formally added to the lease. Correspondence should not be
addressed to the prospective leaseholder until the legal
transaction has been completed.
At application, the existing leaseholder should be aware that,
by adding someone to the lease it may be difficult to have them
removed at a later date, and that the person ‘added’ will have
legal rights to a share of the property on re-sale, divorce or
possibly death. We will recommend that leaseholders seek legal
advice on the consequences of adding someone to the lease.
Genesis, in principle does not object to the addition of a
leaseholder, provided that they are fully aware that they will
become jointly and severally liable for all covenants under the
lease, and that they are financially able to meet any
Joint leaseholders can also request the transfer of the interest
in the property into a sole name. In order to consider the request
Genesis must be provided with the following information:-
- Consent in writing from the person whose name is to be removed
from the lease
- Confirmation in writing from the mortgagee that they consent to
- Confirmation from the person whose name will remain on the
lease that they understand they will be solely liable for the
covenants under the shared ownership lease
- Confirmation from the current lessees that they will clear any
arrears of rent and service charge prior to completion of the
All leaseholders are responsible for the rent and service charge
payments up until completion of the transfer and the payment of any
Genesis will consent to the transfer of lease only once the
above requirements have been met. The leaseholder’s solicitors must
send a Notice of Transfer and the appropriate fee (contained within
the lease) to Genesis.
On receipt of a Notice of Transfer, Genesis will confirm the
transfer completion in writing and update our records to confirm
the change of lease.
Genesis will not object to any re-mortgaging of the property,
provided that the remaining leaseholder can afford the additional
mortgage payments. The leaseholder’s solicitor must confirm that
the additional mortgage funds are solely for the purpose of
purchasing the joint leaseholder’s share of the property.
If either party has already moved out of the premises without
providing a forwarding address, then the remaining leaseholder must
seek legal advice. A lease transfer cannot take place without a
court order, unless both parties agree.
12.0. Lease Extension
Lease extension is provided for in the Leasehold Reform, Housing
and Urban Development Act 1993 (as amended). Technically it is not
an extension, but the issue of a new lease for 90 years, plus the
balance of the old lease. A Lease is known as being "short" if it
has less than 80 years remaining.
Genesis will take the opportunity to determine new lease terms
if an extension application is made.
12.1. Statutory Lease Extension
The Housing Urban Development and Leasehold Reform Act 1993 (as
amended) gives a leaseholder the right to purchase a new lease for
a term of 90 years, plus the present unexpired term, all at a
peppercorn rent (that is, ground rent free). This is subject to
The main conditions are that:
- The customer is a qualifying leaseholder (named on the
- The customer has a ‘long lease’(over 80 years remaining) on the
- The customer has owned the property for at least two
12.2. Discretionary Lease Extension
If the leaseholder does not qualify under the statutory terms
Genesis can offer a discretionary lease extension based on the same
terms and conditions. Genesis is under no obligation to offer
12.3. Exceptions from the right to extend a new
A leaseholder will not be able to exercise the right to a new
- they have a business lease
- the landlord is a charitable housing trust and the flat is
provided by the charity as part of its charitable work
- the building is within the precinct boundary of a
- the building is built on certain land held by the National
- the building is owned by the Crown, except where the immediate
landlord is not the Crown
13.0. Collective enfranchisement – purchasing the
The Leasehold Reform Housing and Urban Development Act 1993 (as
amended by the Commonhold and Leasehold Reform Act 2002) give
customers the right, upon qualification, to compel the sale of the
freehold of the building or part of the building. Where there is
any intervening interest, like a Headlease, this must generally be
acquired as part of the purchase by the tenants.
The qualifying conditions that must be met to proceed with the
- There must be at least two flats in the building
- At least two thirds of the flats must be leasehold
- More than 75% of the total floor area of the building must be
14.0. Right to manage
The Commonhold and Leasehold Reform Act 2002 provides a right
for leaseholders (of flats, not houses) to force the transfer of
the landlord’s management function to a company set up by them. The
right empowers leaseholders to take responsibility for the
management of their block.
To qualify for the Right to Manage (RTM), the building must meet
certain criteria and a minimum number of leaseholders must be in
agreement to form the company in order to make an application:
- The building must be self-contained
- The building must contain at least two flats
- At least two-thirds of the flats must be let to ‘qualifying
tenants’ A ‘qualifying tenant ‘is a leaseholder who owns 100% of
the lease [not shared ownership] whose lease was originally granted
for an original term of more than 21 years
- There is no requirement for any past or present residence in
the flats, or any limit on the number of flats which can be owned
by one person. Where leaseholders consider taking over the
management of the building by forming an RTM company; all
qualifying tenants must be invited to participate.
Genesis endeavours to provide an excellent management service to
its customers; both in standard of service and value for money. By
doing so, it is anticipated that challenges by leaseholders under
the RTM, will be held to a minimum.
Any shared owner leaseholder wishing to re-mortgage their home
must request our approval in accordance with their lease. We may
refuse an application if the proposed lender is not recognised as
an approved lender or if there are restrictions on the scheme, or
if they have insufficient equity to secure the proposed
Where a shared owner wishes to re-mortgage to release equity, we
will consider each case before approving the request. Any mortgage
needs to meet with the HCA guidelines on affordability and must not
include additional borrowing or fees in excess of £1000 without
approval from the Head of Service and the Leasehold Services
In cases where the leaseholder owns 100% of their property we
will not be involved in the re-mortgaging transaction unless
consent is required under the terms of the Lease.
16.0. Further Advances and Postponement of
Genesis has no influence over a Right-to-Acquire leaseholders
ability to refinance to release equity from their lease, unless our
charge to secure the repayment of discount charge is affected.
When Genesis has a charge against the property in respect of the
repayment of Right-to-Acquire discount it will not agree to
postpone this charge in favour of any additional borrowing. For
further information regarding Right to buy or Right to acquire,
please refer to the Right to buy and Right to acquire policy.
17.0. Sale of loft space
Lofts and loft space remains the property of the landlord under
the terms of the lease and should not be used by any leaseholder,
for any purpose whatsoever including the storage of goods.
There is no right to purchase loft and loft space. Leaseholders
who have sole access to a loft can apply to buy the loft space,
however Genesis is under no obligation to sell.
A loft or loft space will not be sold to a leaseholder where the
whole or part of the loft space is located above any other property
except their own. Applications to purchase loft space will be
managed in line with a request for alterations or improvements as
set out in section 18 below.
18.0. Alterations and improvements
Under the terms of the lease the leaseholder will require
Genesis’ permission to carry out any alterations or improvements
- Genesis’ fixtures and fittings (including the removal of fitted
- the exterior of the building; or
- the structure of the building (including the removal of
Leaseholders wishing to carry out alterations or improvement
works to their home must apply for Genesis’ consent as required by
the lease agreement and provide details of the proposed works.
Consent may be granted subject to conditions, such as obtaining
planning permission where this is required. We will not withhold
consent unreasonably. If consent is refused the reason for the
refusal will be put in writing to the leaseholder.
If the proposals include structural alterations (within or
outside of the demise) that will add significant value to the
property it is likely that a premium will be requested in
accordance with the lease. The premium we charge will be determined
either by an assessment by a RICS qualified surveyor or a fixed
amount we deem fair and reasonable. The premium will need to be
agreed by both parties before consent can be granted and a deed
entered into with the leaseholder.
The leaseholder will be required to pay any administrative
charges as well as Genesis’ legal costs, whether or not the matter
proceeds and alteration or improvements take place. The costs will
be published on our website.
Upon approval of plans to complete alterations or improvements
to the property Genesis will appoint a surveyor to carry out a
limited number of inspections to check that the work being
undertaken is in accordance with the consent. If works are found to
be different to the proposed plans and consent, Genesis will
instruct the leaseholder to comply with the licence and return the
property to its original state.
We will keep a record of maintenance work that falls under the
responsibility of Genesis according to individual leases. We will
fulfil our maintenance responsibilities effectively and in
accordance with the provisions of each lease. Staff responsible for
tendering and contracting will be made fully aware of the specific
legal requirements relating to leaseholder and Genesis maintenance
Where it is found that alterations have been commenced or
completed without obtaining our prior written consent, we reserve
the right to take enforcement action and pursue the remedies
available to us for breach of the covenants contained in the Lease.
In exceptional and isolated cases, consent may be provided
retrospectively, subject to requirements and the payment of an
19.1. Shared owners
Shared owner leaseholders are not permitted to sublet their home
in line with the terms of the lease. In some circumstances Genesis
may give permission for a shared owner to sub-let their
Applications will be assessed on a case by case basis following
our internal procedures which are in line with HCA guidelines. The
decision will made by the jointly by the Leasehold Management team
and the relevant Business Manager. If approved the maximum period
allowed for subletting will not exceed 12 months.
We will investigate all reports of unauthorised subletting of
shared ownership properties in line with our unauthorised occupant
policy and we will take legal action for any breach of the
19.2. Outright owners
Customers who own 100% of the equity in the property are
permitted to sublet their home unless otherwise stated in the
lease. Individual leases may contain clauses on sub-letting. Such
clauses may prohibit sub-letting, or they may permit sub-letting
with or without the consent of the landlord. Where there is
discretion under the terms of the lease, we will not unreasonably
Genesis must be provided with contact numbers and a forwarding
address for the leaseholder for the period that the property is
The customer will remain responsible for paying all relevant
charges for the property. If any person or tenant who is given
permitted use of the property causes any form of nuisance,
including damage to other properties or communal areas, then the
leaseholder will be held responsible.
Failure to deal with tenants or persons responsible for such
behaviour will lead to legal action being taken by Genesis for
breach of the lease, which could result in the leaseholder losing
19.3 Holiday and Short letting
Deregulation Act 2015 has made further provision on how the use
of accommodation for the short-term use of London will be
administered. The changes do not affect any existing clauses in the
lease which prohibit sub-letting for instance, Shared Owners.
As a leaseholder with Genesis, you must ensure that holiday
letting and short letting your home for less than 90 days is not in
breach of the terms of your lease.
Genesis is committed to resolving all leaseholder inquiries in
line with this policy and the terms of the individual lease. Where
Genesis or the leaseholder is not in agreement with any decision
made, either party reserves the right to apply to the First Tier
Tribunal for the dispute to be heard.
20.1. First Tier Tribunal (Property
Leasehold Valuation Tribunals were abolished under The Transfer
of Tribunal Functions Order 2013 and their functions were
transferred to the newly created First-Tier Tribunal (Property
Chamber) with effect from 1st July 2013.
The First Tier Tribunal is the formal name given to the body
appointed to make decisions on various types of dispute relating to
residential leasehold properties.
The First Tier Tribunal is an independent decision making body
which is completely unconnected to the parties or any other public
agency. Following an application to the First Tier Tribunal by a
leaseholder, the tribunal will look at the dispute and can:
- decide the price to be paid when a leaseholder wants to buy
(enfranchise), extend or renew the lease of their home and the
value cannot be agreed with the leaseholder
- vary estate management schemes under the Leasehold Reform,
Housing and Urban Development Act 1993
- adjudicate in disputes about the right of first refusal
procedure (which gives
- leaseholders the right of first refusal to buy the freehold
when the landlord wishes to sell it) and the compulsory acquisition
of the landlord's interest in blocks of flats decide liability for
payment of service charges and can settle disputes about the
landlord's choice of insurer
- decide applications on dispensation of service charge
consultation requirements, administration charges, the right to
manage, the appointment of managers, the variation of leases and
Leaseholders have the right to refer any of the issues listed
below without reference to the landlord. Genesis may look to place
longstanding disputes to the First Tier Tribunal, where it has been
unable to resolve them.
Some applications may require the payment of application and
20.2. Application to First Tier Tribunal to vary the
The Landlord and Tenant Act 1987 (as amended by Section 162,
Commonhold and Leasehold Reform Act 2002) makes provision that "any
party to a long lease of a flat may make an application to the
Leasehold Valuation Tribunal (revised to First Tier Tribunal with
affect 1st July 2013) for an order varying the lease in such manner
as is specified in the application’.
Section 35 of the Landlord and Tenant Act 1987 allows such
applications to be made on the grounds that the existing terms are
defective and the problems relate to at least one of a specific
list of issues such as maintenance and upkeep, service charges,
insurance and recovery of costs.
20.3. Application to the First Tier Tribunal to vary the
lease for a group of flats
The other circumstance detailed in the Landlord and Tenant Act
1987 (Section 37) where leases of a group of flats can be varied by
a First Tier Tribunal is when, following consultation, more than 75
per cent of leaseholders agree and not more than 10 per cent
disagree (or in the case of eight or fewer properties not more than
one party disagrees) with the proposal. In addition, consent must
be obtained from lenders.
21.0. Breaches of lease
We will take appropriate action whenever we become aware that a
customer is acting in breach of the terms of their lease. Such
breaches may include the following;
- Non-payment of rent, ground rent or service charges
- Unapproved works
- Failure to maintain, or damage to, premises
- Harassment or anti-social behaviour
We will first serve notice on the leaseholder requiring them to
remedy the breach. If the breach continues, further action will be
taken, which may include seeking an injunction or, as a last
resort, taking further action against the leaseholder for the
forfeiture of their lease.
- Law of Property Act 1925
- Landlords and Tenant Acts 1985 & 1987
- Housing Act 1996
- Common hold and Leasehold Reform Act 2002
- Leasehold Reform, Housing and Urban Development Act 1993
- Royal Institute of Chartered Surveyors (RICS) Code of
- Association of Residential Housing Managers (ARHM) Code of
- Association of Residential Managing Agents (ARMA) Code of
- Institute of Residential Property Management (IRPM) Code of