FAQs

What is a lease?

 The property lease 

For shared owners, the lease is the formal legal contract between you and us setting out the rights and obligations of both parties. It is an important document and is sometimes consulted in the event of a problem or a dispute. There are two identical copies of each lease. Your mortgage lender usually holds your copy and our solicitors hold our copy of the lease.

A lease gives you rights over land or buildings for a set period of time. When this period runs out, these rights revert back to us. 

Length of the lease 

If you are the first person ever to buy the shared ownership property, the lease will usually be for 125 years. Subsequent owners take over the number of years remaining on the lease at the time of their purchase.

If you live in a flat and purchase all the property shares up to 100% ownership, you are still a leaseholder and are entitled to remain in your home until the end of the lease.

House owners who buy 100% ownership normally become freeholders. 

Common terms used in a lease  

The main sections of your lease give you information on the following:  

• A description of the property, defining the boundaries and areas you are responsible for and those we are responsible for  
• How much rent and/or service charges you must pay when the lease starts  
• How the rent and/or service charges are reviewed  
• The items included in the service charges and how we inform you of their cost  
• Arrangements of your buildings insurance  
• How you can purchase additional shares in your home  
• How you can sell your home  
• An explanation of your rights and responsibilities and ours under the terms of the lease.  

Please contact our Home Ownership team via email at mhoadmin@moat.co.uk or call us on 0845 359 6161. 

What rights and responsibilities do I have under my lease and for how long?

 As a shared owner, your main rights are:  

• To live in your home for the length of the lease. 
• The quiet enjoyment of your home. 
• Not to be disturbed by nuisance or acts of harassment by other leaseholders, members of their household or visitors.  
• For flat owners, the support and shelter of other parts of the building and the repair of the structure and the communal areas by us.  
• To purchase additional portions of the equity by staircasing.  
• Obtain the freehold if you have acquired 100% of the equity (houses only).  
• Your responsibilities under the lease. 

Your main responsibilities are: 

• To pay your rent and service charges on time 
• To pay all taxes and charges due.  
• To maintain and repair the internal parts of your home, including doors and windows.  
• To allow us or our contractors access to carry out necessary work to your home.  
• Not to alter the exterior or interior of your home without our permission.  
• Not to use your home for anything other than a private residence.  
• Not to cause a nuisance or harass other people.  
• For flat owners, not to keep a pet without our written permission (if you own a house, and your pet causes a nuisance to your neighbour, you may be asked to remove the pet from the property). 
• To inform us if and when you wish to sell your home and obtain our consent. This will not be unreasonably withheld. 
• Not to sub-let. 
• To park vehicles in accordance with your lease. 

Please contact our Home Ownership team via email at mhoadmin@moat.co.uk or call us on 0845 359 6161.

What are Moat’s responsibilities under the lease?

 Our responsibilities are:  

• To allow you the quiet enjoyment of your home.  
• To keep your home insured against loss or fire (this does not apply to you if you purchase the full 100% equity of your home and become a freeholder).  
  

If you live in a flat (and Moat holds the freehold):  

• To maintain the structure and exterior of the building.  
• To maintain the communal areas and keep them clean and well lit.  

What do I pay a management fee within my service charge for?

 As a way of improving the means by which we charge you for the services you receive, Moat has ceased to charge a standard management fee to shared owners. In its place, only those shared owners who have to pay service charges (usually those in flats), will be required to pay a management fee to Moat. This will be based on 15% of the service charge spend, if Moat provide your services for you, but 5% if you have managing agent providing your services (this covers our costs in handling your services charges).

Please note: the only variations to this will be those leases or agreements which have another defined management charge.

Previously, when a standard fee was charged to all shared owners, this covered many ad hoc costs, for example it covered our administration costs if a shared owner wanted to staircase, register home improvements, or re-mortgage. In place of paying a regular, monthly fee, we are now charging only for the specific services that you require. Please see below a menu of some of our administrative charges:  

• Transfer of lease: £85 + VAT  
• Remortgage (with further borrowing): £55 + VAT  
• Registering home improvements: £45 + VAT  
• Copy of lease: £25 + VAT  
• Extension of lease: £100 + VAT  
• Staircasing: £180 + VAT  
• Sub-letting (subject to approval): TBA  

Please contact our Home Ownership team via email at mhoadmin@moat.co.uk or call us on 0845 359 6161. 

Who will repair my home?

 The shared ownership lease is a full-repairing lease which means that you are responsible for repairs and maintenance. If you live in a house, this includes all repairs or maintenance to the structure and the inside and outside of your home.

If you live in a flat, you are responsible for the inside of your property and you will need to repair and maintain: 

• Window sills, frames and glass  
• Ceilings (except joists and beams)  
• Floors  
• Internal doors  
• All internal non load bearing walls  
• Plaster and other surfaces to floors, walls and ceilings  
• Flat entrance doors  
• Water tank (if it supplies water to only your flat)  
• Internal plumbing, gas and electricity  
• All fixtures and fittings such as kitchen and bathroom fittings (except those that are part of a shared system, such as a door entry-phone)  
• Heating systems 

For flats, it is the freeholders responsibility to carry out repairs and maintenance to the communal areas, the outside areas and the structure of the building. The cost of these communal repairs or cyclical decorations is recharged to all of the properties in the building.  

If you have damaged a communal area, you may be charged for this repair or any remedial works. 

Can I make alterations and improvements to my home?

If you wish to make improvements or alterations to your shared ownership home, you must write to us for our permission before you carry out any work. We class an improvement as any major works carried out to your home, including replacement kitchen units, bathroom suite, double glazing, central heating or any alterations to the structure of the property. We will not unreasonably withhold our permission, but under the terms of the lease, you must first receive our approval. This permission has an additional importance when you increase your equity in your property through staircasing.

It may be necessary to obtain planning permission or building regulations approval before you make any changes. In addition, a licence for alteration will also need to be drawn up by our solicitors. If you fail to do this, you will be breaking the conditions of your lease and you risk losing your home. You may also have to pay for the cost of putting things back as they were.

Please remember that repairs and maintenance are not considered as improvements. Listed below are some examples of improvements and alterations compared to maintenance and repairs. 

Improvements or alterations 

• Double glazing - windows/doors (if previously non double glazed)
• New fitted kitchen  
• New bathroom suite  
• Installation of central heating (if previously storage heating/warm air)
• Conservatory  
• Loft conversion
• Extension
• Addition of a garage/car port (does not include replacement of existing structure.
• Addition of a driveway and dropped kerb (does not include renewal of existing surfaces)

Maintenance or repairs 

• Redecorating your home  
• Floor covering (i.e. carpets/laminate flooring)
• New fence and/or patio  
• Replacement central heating boiler  
• Landscaping of garden/garden structures (i.e. summer houses,sheds)  
• Rewiring or re-plumbing
• Rendering or texturing to exterior of property
• Fitted wardrobes  

You do not need to obtain our permission for maintenance or repairs items.  

We are always willing to give help and advice over the telephone if you are unsure whether something is a repair or an improvement. Please contact us if you are planning any improvements or alterations.

If you are considering making improvements or alterations to your home, click on our home improvements leaflet which gives more detailed information on this process. 

Can I sub-let?

For information on sub-letting, please visit our sub-letting page.

How can I remortgage my property?

 When you bought your home, we approved your mortgage. If you wish to change your mortgage, you need to ask for our approval. We will not refuse this, providing your new mortgage is for the same amount as your old one and on the same terms.

This means that you cannot borrow any extra money on your mortgage or take out a loan using your home as security.

However, in certain circumstances we can allow further borrowing. Instances such as essential repairs to allow you to comply with covenants in your lease, to buy out a joint owner or to staircase may qualify for further borrowing. Please contact the Home Ownership team for further information via email or by telephone on 0845 359 6161.
Please see our  re-mortgaging and further advance leaflet  for more information.  

How do I pay my rent and will it increase every year?

 Paying your rent and service charges
Rent and service charges are payable in advance on the first of each month. All leases since 1 April 1998 require you to pay rent and service charges by direct debit.

Increases in rent and service charges
Rents are increased each year on 1 April. Rents generally increase in line with the rate of inflation (Retail Price Index [RPI]), plus up to 2% (depending on your lease).  

Service charges are reviewed at the same time. 

What happens if I get into rent or service charge arrears?

 It is important that you realise that not paying your rent or service charge could result in you losing your home via repossession or eviction.

If, for whatever reason, you skip a rent or service charge payment, you must contact us immediately. We can agree a payment plan for you to clear your arrears by paying extra each month, based on your financial circumstances. If you do not contact us, we will write to you requesting payment. If you do not pay or make arrangements to clear any arrears, there are several courses of action that we may choose to take, including: 

• Charging you interest on your arrears. We reserve the right to charge interest on any amounts owed at a percentage rate above either Barclays or National Westminster Bank base rate.  
• Approaching your lender to clear the arrears on your behalf. Any payment the lender makes may be classed as arrears on your mortgage. This can lead to the lender repossessing your home.  
• Taking action through the courts to repossess your home.  
• Obtaining a county court judgement. 
• Obtaining a money judgement order.  

What are service charges for?

 You normally pay service charges if you live in a flat or a house that has communal areas. These charges cover the cost of buildings insurance and of providing services and repairs to the communal areas. Typically, service charges can include: 

• Cleaning of communal areas  
• Maintaining communal gardens  
• Maintenance contracts for amenities such as entry-phones and lifts.  
• Communal repairs and maintenance. 
• Surveyor’s fees.  
• Administration charges incurred in setting up contracts and providing services.  
• Building insurance (this becomes your responsibility if you purchase the full 100% equity of your home and become a freeholder).  
• Contributions to sinking fund for cyclical redecoration and/or major works.  

Contributions to replacement reserves for major items, such as lifts.  

How are service charges calculated?

During autumn each year, we look at how much has been spent on providing services and estimate how much will be needed in the next financial year. This estimate is based on actual costs, inflation and quotations from contractors.

In February, we write to you telling you how much we will charge each month for the twelve month period starting in April. This information is sent with the letter informing you of the rent increase and includes a breakdown of how the service charges have been calculated.

The proportion of the overall charge which you pay is set out in your lease. For example, if you live in a building consisting of ten flats where cleaning to the communal areas is provided, the cost of the cleaning service would be divided by all the flats benefiting from the service, so you would pay one tenth of the total calculated cost.

Please remember that if you pay service charges as a shared owner, you will continue to pay service charges even if you staircase to full ownership.

Sinking funds and replacement reserves
Sinking funds and/or replacement reserves are used for major repairs, equipment replacement and cyclical decorations to communal areas. We collect small amounts each month from each resident and hold money in a high interest bank account. When work is needed this fund is used to assist towards the costs. We will tell you each year how much has accrued in the fund, including any interest added.

Year end account
Once a year, between May and September, we calculate the service charge payments you have made, compare these to the actual costs of providing the services, and send you a breakdown of costs compared to payments. We refund the difference if the total you have paid is higher than the actual cost. Likewise, if we have undercharged you, we will request an additional payment.

If you receive two or more day-to-day services (such as cleaning and gardening), we will write inviting you to a meeting where we will present the year end accounts and copies of all relating invoices. At the meeting we will also discuss our performance in delivering recent services and ask what services and standards you expect in the new financial year. 

If you do not wish to attend a meeting, you are welcome to write to us asking to inspect the invoices or any documents relating to your service charges. The information will be made available to you within one month. Depending on the number of invoices, a small charge may be made. We will also provide a written summary of service charges.

Appointing a surveyor
A recognised residents' association has the right to appoint their own qualified surveyor to advise them on service charge matters. The residents' association must pay for the surveyor’s costs. The surveyor will have the right to inspect and copy any documents held by us relating to service charges. 

Are the service charges reasonable?
If you believe the service charges are not reasonable once you have seen our information, please contact the Service Charge team on 0845 600 1006 or via email at customer@moat.co.uk. If you are still unhappy you can contact your local Leasehold Valuation Tribunal and apply for a decision on whether the charges are reasonable and fair. You will have to pay the cost of your application.  

What am I covered for and what can I claim for under my building insurance?

This charge covers the cost of the buildings insurance that we hold for all shared owners and leaseholders. The insurance covers the buildings only, it does not cover the contents of your home and you will need to arrange your own insurance for this.

As part of Moat, with around 20,000 homes, we are able to provide buildings insurance cover at very competitive rates. This is charged to you within your service charges each month.

People are sometimes unclear over what is covered by the buildings insurance. Basically, it insures you for damage to the structure of your property.

For example, if your water tank leaks and damages your ceiling and walls, you would be able to claim for the repair to your ceiling and walls, but not for the repair or replacement of the water tank. This is because the insurance company would consider the repair or replacement of the tank as maintenance and therefore, your responsibility. This is standard procedure among insurance companies.

If you need a copy of the buildings insurance policy or a summary of the main provisions, or if you wish to make a claim, please ask the Home Ownership team for information via email or telephone on 0845 359 6161. 

What can I do about a noisy neighbour?

 You have the right to live peacefully in your own home and we expect you and your neighbours to treat each other with consideration. It is a condition of your lease that you do not cause a nuisance or create a disturbance.

If you do experience noise nuisance from a neighbour, there are steps you can take. The first step is to speak to the neighbour causing the noise, as they may not be aware that they are disturbing you. If this does not solve the problem, contact your Neighbourhood Officer. We can offer advice on dealing with disagreement. Many councils and other agencies have mediation services that can help sort out disputes.

Your local council's Environmental Health Department also has certain powers to deal with noise nuisance. They may ask you to keep a diary of the times and types of nuisance you experience.

Sometimes a little thought and consideration is all that is needed to make your neighbourhood a more pleasant place to live in. Please remember to: 

• Set the volume on your stereo or television so you can hear it, but it is not too loud to be a nuisance  
• Use your washing machine or hoover in the daytime or the early part of the evening  
• Park your car in your own designated space or driveway and not in your neighbour's place  
• Ensure your children are supervised and not causing a nuisance to other people 

Click hereto see a copy of our policy and procedure for dealing with nuisance and anti-social behaviour, or a copy is available free of charge on request. 

What do I do about rubbish?

 Rubbish left in communal areas can be dangerous and unsightly. Household refuse collectors will not take away large household items such as old mattresses and chairs as part of their normal collection.

If you have any rubbish that is not household waste, please contact your local council as they can sometimes arrange for a special collection or advise you where the nearest rubbish dump is situated. Please do not leave rubbish expecting Moat or anyone else to clear it. If we have to arrange for a special collection, the cost will be added to everyone’s service charge. You would not wish to pay for your neighbour’s thoughtlessness, so please do not make them pay for yours. 

Can I join a residents' association?

 We actively encourage and support residents’ associations. Through residents' associations, you can sometimes have greater influence than if you act as an individual. Residents’ associations can get involved in the management of an estate, propose ideas for improvements, organise social events and have real control in how we provide communal services.

We will support all associations that are properly constituted and have gained recognition from Moat. We will help service your association by arranging meetings, photocopying agendas and minutes and attending at least one meeting a year on request.

If you would like to know more, please contact us  for information on how to start a residents' association. 

What are my rights to information and confidentiality?

 Your right to information
We aim to act in an open and honest way in everything we do. You have certain rights to information held by us, including the right to inspect your personal or property paper files and any information we hold electronically.

If you believe that any information about you is incorrect, please tell us so it can be corrected or removed. You could be entitled to claim compensation for any damage or distress caused by us keeping incorrect information.

To view these records, you should contact the Home Ownership team to make an appointment on 0845 359 6161 or alternatively email a member of the team. If you want a copy of the information we hold about you, please send us a request in writing and we will send you the information within ten days. We may charge fees for providing photocopies and computer prints.

Confidentiality
We hold all information confidentially. We will not discuss or show anyone your records without your consent. If you would like a copy of our full confidentiality policy, please contact us. 

I want to move – what do I do?

 Transferring to another shared ownership home

We operate a transfer list for shared owners who wish to move to another shared ownership property. There is also a national organisation called Shared Ownership HOMES who may be able to help.

Please contact our Resales team on 0845 359 6161 to discuss the options available.

Selling your shared ownership home

If you own less than 100% of your home and you wish to sell your share then you must inform us in advance. Within your lease conditions, we have a period of one to two months to find someone to buy your share from you. This is called the nomination period. We charge an administration fee for selling your property which is much less than estate agency charges. This charge will vary depending on your lease.

Please contact our Resales team for further advice on selling your home. 

I want to add/remove my partner to and from my lease. Can I do that?

 If you wish to add or remove your partner to or from your lease, you will require Moat's permission. Please contact the Home Ownership team via email or by telephone on 0845 359 6161. 

Please see our transfer of lease leaflet for more information.  

How can I pay my account by debit or credit card?

 To pay by debit or credit card just telephone our Customer Service Team on 0845 600 1006. Please note that the cardholder must be the resident. Once the transaction is made we will send you a receipt to confirm payment. 

My Housing Benefit is not being paid/is incorrect. What should I do?

 If you have a problem with your Housing Benefit, you should contact your local authority as soon as possible. The local authority should inform us of what is happening; however we would advise you to contact us if there are any problems. 

I am in arrears, who can I speak to?

 If you are having problems paying your rent you should contact our Customer Service Team immediately on 0845 600 1006. We can set up a payment agreement with you and provide you with any advice regarding welfare benefits and debt. 

I am having problems with my neighbour. What can I do?

 In some cases if you are having problems with your neighbour it is a good idea to approach them yourself and try to resolve the situation between you. However if this does not work and the problem continues it is advisable to contact us for further advice. 

How do I report a communal repair?

 To report a communal repair, contact our Customer Service Team on 0845 600 1006. To help us provide you with an efficient service, please have as much information as possible ready before you phone.
Alternatively you can report your communal repair online. Please click herefor more details. 

Why do I have to pay rent on my shared ownership home?

 The rent you pay is low - less than 3% of the share value that you have not yet purchased. Moat borrows money that funds the development of new affordable homes; the rent you pay services the loan that was taken out to fund the development of your shared ownership home. If you buy more shares in your home (staircase) then the rent you pay reduces (although your mortgage payments may increase if you borrow more money to fund the staircasing).

Why do I have to pay for all the repairs and maintenance on my shared ownership home when Moat owns part of the property and doesn't pay anything towards these?

 By becoming a shared owner you sign up to a "fully repairing lease". This means you accept responsibility for all repairs and maintenance on the property as a condition of the purchase. Although you pay rent to Moat, you live in the home as a home owner. If you pay for any improvements that add value to your property, you gain the benefit from these when you eventually staircase or sell the property.

See our home improvements leaflet for more information.