'Right to buy' leaseholders face huge bills

Charges of up to £56,000 being levied by Hounslow Homes

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A major row has broken out over repair bills that are being presented to leaseholders who acquired their properties from Hounslow Council under the 'right-to-buy' scheme. In one reported case a couple in their seventies have received a bill of £56,000 for repairs done to their property.

There are 2,500 leaseholders of this kind in the Borough Hounslow Homes acts as the managing agent for these properties on behalf of Hounslow Council. They say the leaseholders' obligation to pay their portion of costs was made clear at the time of purchase and dismiss media reports of householders facing ruin as sensationalist.

Liberal Democrat Prospective MP for Brentford & Isleworth Andrew Dakers is calling for a Scrutiny Panel Investigation into Hounslow Homes. He has suggested the investigation should be scoped to the arms-length housing organisation's sales practices and management of maintenance costs.

Andrew Dakers said,"Whilst all appropriate bills must be paid, easy payment terms should be the starting point, and leaseholders must be able to trust the management's maintenance decisions. To clear the air and restore confidence we must also be assured that potential owners are being given the full picture of the likely maintenance costs when they sign up to the 'Right-to-Buy' scheme. This is the fair treatment they deserve."

Phil Andrews, Prospective MP for the Community Group represents the Isleworth area as a ward councillor. Leaseholders in former council properties in this area have been particularly hard hit by the charges. He said, " The 'service charge' has become to all intents and purposes an unofficial tax levied by Hounslow Council against certain members of our community."

A spokesperson for Hounslow Homes said, " The cost of improving badly designed large estates has been massive - but worth it. This is the last phase of improvements designed to tackle root and branch design disasters such as flat roofs, asbestos cladding, window replacement and security. The speed with which 'for sale' signs have appeared on the estates are testament to a thriving community which people want to buy into."

They say they have carried out the repair programme in a transparent manner and have extensive measures in place to help leaseholders who are suffering financial hardship. Leaseholders can also apply for a reduction where charges for works exceed £10,000 in any 5 year period, but charges cannot be reduced below £10,000.

Leaseholders have also been told about advice agencies and their right to go to the Leasehold Valuation Tribunal (LVT) to challenge the charges.

April 1, 2005