Information for shared owners of Basildon Council properties
There are two types of leasehold property involved in 'Shared Ownership', these are:
- Shared ownership freehold property
- Shared ownership leasehold property (otherwise called privately built leasehold property).
Basildon Council Shared Ownership Freehold Property
These are properties in which Basildon Council still retains an interest in ownership of the property (often 50%).
The lessee has a lease relating to the share which she/he owns.
The lessee pays rent to Basildon Council for the share still owned by the Council.
When the lessee buys the remaining share of the property, the freehold of the property is transferred to the purchaser and Basildon Council ceases to have any interest.
Shared ownership leasehold property (otherwise called privately built leasehold property).
These are flats where the Council owns the freehold of the Estate.
In most cases there is a management company, which looks after the management of the estate.
Where the lessee does not have a 100% interest she/he will have a shared ownership lease, which requires that she/he will pay rent to the Council for the share of the property still owned by the Council. She/He will also pay service charges to the management company.
When the lessee buys the remaining share from the Council, the lessee does not get the freehold (which is retained by the Council) but is entitled to another lease. The Council continues to hold the freehold interest. The lessee will cease to pay shared ownership rent but will continue to pay ground rent and the service charges.
The management (or residents) company:
- has a lease from the Council of the amenity areas and the structure of the buildings.
- is responsible for maintenance of the structure of the buildings and these amenity areas and insurance.
- makes a service charge which is payable by the lessees whether they are shareowner or 100% leasehold.
- pays a ground rent to the Council.
There are some lessees where there is no management company. These are usually leases of maisonettes where there are two in a block (one of the ground and one of the upper floor).
Management Companies and Shared Ownership.
Management companies exist to manage the structure of the buildings and the communal areas as stipulated in the individual leases of flats.
Each lessee of a flat should be a member of the management company relating to his or her estate.
If you feel that there is any malpractice within the management company in carrying out its duties and responsibilities, you should immediately contact the Home Ownership Team, who will investigate your enquiries and respond appropriately.
All Shared Ownership Tenants require a licence to sub-let their property.
Shared owners can request a licence to sub-let their property by writing to Basildon Council's legal department at:Legal ServicesBasildon CouncilThe Basildon CentreSt Martin's SquareBasildon, EssexSS14 1DL.
If you sub-let your property
As you are still the legal owner you will still be responsible for paying your monthly rent on the percentage of the property still owned by Basildon Council. So please remember, if you sub-let your property it is vital that we are aware of your new correspondence address.
Applications to buy the remaining percentage of your shared ownership property, (known as 'Staircasing')
The Home Ownership Team welcomes applications from shared owners who wish to purchase the remaining percentage of their Basildon Council shared ownership property .
Completed applications should be returned to the Home Ownership Team.
£25 application fee - In accordance with the requirements of the lease to your shared ownership property, applications must be accompanied by a cheque for £25 made payable to Basildon Council, or if you prefer to pay by Credit Card or Debit Card please phone 01268 533333.
Please note: Applications to buy the remaining percentage of a shared ownership property cannot be accepted if:
- a court has made a possession order stating that you must leave your shared ownership property
- you are an undischarged bankrupt or have a bankruptcy petition pending against you
- you have made a legal arrangement with creditors (people you owe money to) and you still owe them money.
Applicants may be eligible for a discount - If you have been the tenant in a Basildon Council shared ownership property for 3 years or more you may be eligible for any available discount. However please be aware that applicants can only benefit from any available discount if their shared ownership property has been their only home during the entire period of shared ownership and has never been sub-let to a tenant.
Shared Ownership Rent Payments
Shared ownership properties are held on a leasehold basis where the Lessee owns a part share (often via a mortgage) and the remaining share is rented from the local authority.
- Rent is due in advance on a monthly basis.
- Rent payments can be made by:
- Standing Order - to arrange a standing order please contact the Home Ownership Team and they will send you a form that you will need to hand into your bank/building society. See contact details bottom of page.
- Direct Debit - to arrange a Direct Debit, please contact the Home Ownership Team and they will send you a mandate that you will need to complete and return. See contact details bottom of page.
- Credit/Debit Card - by phone to 01268 533333 or at the automatic payment machines on the ground floor in the Basildon Centre.
or by cash at the automatic payment machines on the ground floor in the Basildon Centre. CASH PAYMENTS SUSPENDED: Cash payments at the Basildon Centre have been suspended until further notice due to the coronavirus pandemic.
If the shared owner falls into arrears a procedure will be followed to recover outstanding payments due to Basildon Council.
Selling your Shared Ownership Property
As stated in your lease, if you wish to sell your property you must first offer Basildon Council first refusal.