Frequently Asked Questions.
During our engagement with residents so far, questions have been asked that we feel are useful to share with everyone on the estate.
This is a ‘live’ page accurate as of April 2021, many of the answers to these questions will develop and become more detailed as we progress further in the process.
Options Appraisal Process
1. What is an options appraisal?
As part of the process, One Housing has been holding a series of consultations, these will continue over the coming months, during which several different options will be developed with the community. This includes options such as; nothing changes, refurbishment, partial demolition and infill construction (building on vacant land) as well as demolition and redevelopment. It is not simply about demolishing homes, it is about considering all options which may mean homes remain untouched, refurbished or rebuilt.
We are currently in cycle 2 of the options appraisal process, which is typically carried out in up to 5 cycles. During these cycles’ residents are asked to comment on the options that they see. The options you have seen so far have not contained lots of detail, and you have not been asked to make any final decisions, this is because the design of the options will continue to change in consultation cycles 3 and 4 based on your feedback. In this way, we ensure that as far as possible, the options reflect the wants of the local community.
As these options become more detailed, they will continue to be assessed by residents and a number of consultants (planning & financial consultants for example) in order to settle upon a single, realistic preferred option.
That option will then be put to a resident ballot. In this way, residents will decide whether it goes ahead.
2. Why do you need resident feedback at every stage?
3. Will residents get to vote on any proposals?
4. Is there a minimum threshold for turnout at the ballot?
5. Who is eligible to vote in a ballot?
My home and my estate
6. If my current home is demolished as part of any regeneration option, will I be able to move back to the new development when it’s finished?
7. I am currently overcrowded; will this be solved as part of any regeneration option?
8. The cycle 2 booklet talks about minimum space standards, what does this mean?
9. Will my tenancy rights be kept (preserved) if I am required to move away and then come back once the regeneration is complete?
Advice is available from your Independent Resident Advisers: Christine Searle,
Rob Lantsbury and Iftekhar Ahmed from New Mill. The New Mill team can be contacted on the following freephone number: 0800 0304 588.
10. Will I be required to move away because of any of these options?
11. If you build new homes on my estate as part of any regeneration option, who is going to be living in them?
12. Will I lose my parking space as a result of any option?
13. Will my rent go up because of these options?
14. Will my service charge go up because of these options?
15. Will my utility bills (electricity, gas, water etc) go up because of these options?
16. Will my council tax go up because of the regeneration?
Kingsbridge information for leaseholders – June 2021
17. If the preferred option involves refurbishment, what will I be expected to pay for?
Talking more generally, what works you can be expected to pay towards as part of a refurbishment is determined by your individual lease. Most leases allow the freeholder (in this case One Housing) to recover costs for works which involve repairs or maintenance (such as repairing the roof). In addition, some leases also allow the freeholder to recover costs for improvement works (such as adding balconies). Even leases that prohibit a freeholder recovering costs for improvements, may allow recovery of costs if the improvement is due to a law or regulation change (such as having to improve insultation due to environmental performance regulations).
In any instance, a Section 20 notice would be issued for costs we wished to recover as per normal procedure/the terms of your lease. Examples of improvements which have been shown in the options so far include the addition of lifts, balconies and improved insulation.
18. Why are you showing me options for regeneration if you don’t yet know what they will cost me?
19. Will my service charge go up because of any of the potential options?
20. If required for the preferred option, how will my property be valued?
21. If the preferred option involves the demolition of my home, will I receive any compensation?
22. Will my utility bills (electricity, gas, water etc) go up because of these options?
23. Will my council tax go up because of the regeneration?
24. If the preferred option involves partial or full redevelopment and my home is demolished, what options will be available to me?
Having said that, typically outright sale is offered to both non-resident and resident leaseholders, with resident leaseholders also having the option of taking an equity loan or shared ownership option. Some details on each of these options can be found below.
It should be noted that the text outlining the options below was taken from the landlord offer for One Housing’s proposed regeneration of Kedge House, Winch House & Starboard Way and may differ from the final offer made to the Kingsbridge leaseholders.
Outright sale – Available to both resident and non-resident leaseholders. One Housing will purchase your property for the full open market value as determined by an independent RICS qualified surveyor, plus a 10% statutory home loss payment for resident leaseholders and 7.5% home loss payment for non-resident leaseholders. We will also reimburse you for the reasonable cost of your own independent valuer, legal fees, stamp duty and financial advice relating to the sale and removal costs. Reimbursed costs are to be agreed before they are incurred through the provision of quotes. If you take this option, you would not be automatically entitled to a property within the new development. The buyback process must commence at least 18 months before the expected start on site date.
Gain full ownership of a new home within the development with an interest free loan arrangement with One Housing if required (an equity loan) – Available to resident leaseholders. You invest the full market value of your current home, plus your 10% home loss payment (less £6,500 that can be retained) into a new property within the upcoming development area.
You must invest the full value of your property, less any mandatory deductions from the agreed value (for service charge arrears or other personal debts for example) and any existing mortgage most be ported across. You will not pay any rent on the remaining equity.
One Housing will fund the difference in value and secure it against the value of the property (in effect an interest free loan). If the property is sold in the future One Housing would be entitled to receive the same proportion of sale revenue as they originally provided. The lease may be passed on once to an immediate family member as a succession. At the point of a second succession One Housing’s share of equity must be repaid through the sale of the property.
Gain partial ownership of a new home within the development with One Housing as partner (shared ownership) – Available to resident leaseholders. This option allows you to part own and part rent a newly built home within the new development. This option is for homeowners who wish to have the option to ‘buy out’ One Housing’s equity share over time. You will be asked to pay rent on the unpurchased portion of the property up to the lower of:
- 50 per cent of the value of the new property, or the full market value agreed for your existing property.
- You will be required to invest your full home loss payment, in order to get as close as possible to either of the two above thresholds (whichever is the lower).
- You are required to purchase a minimum of 25 per cent of the value of the new property.
- Rent will be charged at 2.75% on the difference between the share purchase price and the full market value or 50% of the value of the new property, whichever is lower.
- Any existing mortgage must be ported across to the new property. You can pay off a proportion (or all) of One Housing’s share at any time, subject to a market evaluation at that time. This is often referred to as ‘staircasing’.
25. Who is eligible to vote in a resident ballot for regeneration?
Eligible voters are as follows:
- Social tenants
- Resident leaseholders who have been living in their properties as their only or principal home for at least one year prior to the date the Landlord Offer is published and are named on the lease or freehold title for their property.
- Any resident whose principal home is on the estate and who has been on the local authority’s housing register for at least one year prior to the date the Landlord Offer is published.
Rob Lantsbury and Ifte Ahmed your Independent Resident Advisors specializes in leasehold matters. Please contact Rob or Ifte on the details below to discuss any matters independently.