Flats are sold on a “community leasehold” basis: each buyer purchases the underlease for their property via Glenkerry Co-operative Housing Association Ltd (GCHA), at 50% of the market price as determined by the District Valuer (DV). Whenever a leaseholder decides to sell the sale price will also be set at 50% of the latest current value, also as defined by the DV. There is no option to increase the percentage paid in order to own the property outright.

The latest valuations (2020) give prices for the remnants of the original lease at between £107,000 and £175,000 depending on size (1-bed, 2-bed, 3-bed flats and 4-bed maisonette), but may well change as newer valuations become available. These prices represent 50% of the market value of the properties.

Upon purchase of the underlease there is a mandatory purchase for £1.00 of a share in GCHA, which allows for participation but otherwise has no monetary dividend attached.

The original underleases, offered from 1979, were for a term of 99 years less one day: that is, one day less than the term of the head lease. However, the headlease was extended by the London Borough of Tower Hamlets in 2019.

Therefore, if the underlease has not already been extended by a statutory period of 90 years that option will become available, at a cost, to any new leaseholder after two years in residence at the property.

Leaseholders’ responsibilities

The members of GCHA have both an individual and a group responsibility for running the Association and maintaining the block, via the elected Committee of Management. The fact that the Association is self-governing allows us not only to maintain control over our living environment, but also, through the efforts of the volunteer committee members, to keep down the maintenance and service costs.

There is also an expectation that all leaseholders will actively participate in keeping the building tidy and reporting any matters at the first opportunity.

Joining GCHA

Each new applicant who successfully passes initial assessment will be interviewed and asked, among other things, how they envisage participating in the co-operative and helping to keep the Association going. There are numerous ways in which leaseholders may contribute.

General responsibilities

All shareholders in GCHA are expected to attend each Annual General Meeting, usually every January. These meetings are held to elect members for the Committee of Management (see below), and to present reports and motions to the shareholders, as well as to receive the accounts. Shareholders may also be called upon to attend Special General Meetings, which are held to decide specific policy and/or issues.

In addition, and more informally, residents (leaseholders and their family) are expected to be “good co-operative members”; the co-operative ethos extends to living in the block comfortably. Most of the rules we have are there to ensure peaceful and quiet enjoyment of our homes, consideration for others and keeping the service charge as low as possible.