How the Ombudsman can help leaseholders and shared owners

A lease is a contract which allows someone to own or rent a property for a period of time, like a number of years. A lease can be ‘short’ or ‘long’.

Short leases last for a short period of time, like weekly, monthly or yearly. We often refer to these as tenancies. Those who have a short lease are called ‘tenants’. We do not deal with tenancies in this factsheet.

Long leases last for longer periods of time, usually more than 21 years. Long leaseholders are usually just referred to as ‘leaseholders’ and are generally regarded as homeowners.

This factsheet is for those with long leases. It also includes information about shared ownership leases.

Shared owners are generally regarded as leaseholders. There are some exceptions to this.

Instead of owning all their home, shared owners only own a share of it - like 30%. The landlord owns the remaining share. Shared owners may have the right to increase their ownership share. This is called ‘staircasing’.

We consider complaints about housing management – for example property condition and repairs, complaint handling and antisocial behaviour affecting residents in their home.

We can also investigate complaints about the calculation, collection, or communication of a service charge. We cannot consider the amount of service charge or level of increase.

Common topics from shared owners and leaseholders considered by the Ombudsman:

• complaint handling
• property condition
• charges (calculation, collection, or communication)
• estate management
• buying or selling a property
• anti-social behaviour
• health and safety (including building safety)
• information and data management
• staff
• reimbursement and payments
• occupancy rights
• resident involvement

We are not free to consider all complaints referred to us. We cannot consider complaints which:

• are about those who are not members of the Ombudsman's Scheme
• do not relate to what the landlord has or has not done – such as complaints about unconnected third parties like developers or surveyors
• have been to court
• do not relate to housing management
• relate to the sale or disposal of local authority-owned properties, often called Right to Buy, which can be considered by the Local Government and Social Care Ombudsman
• the conveyancing process and complaints about legal services are considered by the Legal Ombudsman

While leaseholders and shared owners can make complaints to us about housing management problems with their social landlord. It might not always be the most suitable option depending on the area of complaint.

We may not consider complaints where the Ombudsman considers it quicker, fairer, more reasonable or more effective to seek a remedy through the courts, another tribunal service or procedure.

The Ombudsman may not be able consider disputes which can decided by another body, including:

• valuations, which can be decided by District Valuer Services
• negligent liability for which can be decided by the courts
• allegations that one or more of the parties has breached the terms of a lease, which can be decided by the courts
• rent and service charge levels and increases, which are more appropriately decided by the First-tier Tribunal (Property Chamber)

A remedy is how the Ombudsman ensures that matters are put right after we investigate a case.

If the Ombudsman finds the landlord has got things wrong, we can order it to:

• apologise
• pay compensation for distress and inconvenience and in some cases financial losses
• comply with its policies and procedures and the lease agreement
• take some action / or refrain from taking some, such as enforcing a legal right under the lease
• review its practices, policies and procedures
• take other reasonable steps to secure redress within the powers of a member

The First-Tier Tribunal (property Chamber)

Can support on issues of level of service charge, lease extension or breaches of lease agreements  

First-tier Tribunal (Property Chamber)

The Leasehold Advisory service (LEASE)

Offers free advice on leaseholder and shared ownership matters.  

The Leasehold Advisory service

The Royal Institute of Chartered Surveyors (RICS)

The Royal Institute of Chartered Surveyors (RICS) can help you to resolve disputes about an independent surveyor.

The Royal Institute of Chartered Surveyors

District Valuer Services (DVS)

Is the specialist property arm of the Valuation Office Agency (VOA) they provide independent, impartial, valuation and professional property advice across the entire public sector, and where public money or public functions are involved.

District Valuer Services

Financial Ombudsman

May be able to assist if you think your mortgage valuation was inaccurate or was valued at a lower than market rate. 

Financial Ombudsman

New Homes Ombudsman Service

If you are unable to resolve a complaint with a developer of a new build home, the New Homes Ombudsman may be able to assist with your complaint. Where a social landlord develops or commissions new homes or offers shared ownership homes, the landlord will be a member of our Scheme. That means the complaint will fall within the jurisdiction of the Housing Ombudsman only.

The Housing Ombudsman and New Homes Ombudsman have signed a Memorandum of Understanding (MoU) setting out how the two bodies will work with each other. It also clarifies any potential overlap in the jurisdiction of the Ombudsmen to ensure that it is clear  which complaints they investigate.

The Housing Ombudsman and New Homes Ombudsman Memorandum of Understanding

New Homes Ombudsman Service

The Legal Ombudsman

Is an independent complaints body that can investigate complaints about legal services in England and Wales.

The Legal Ombudsman