Missing Shares Guidance Document (ACC and Owners)

Where an owner is not able to fund their share of the cost of common works being carried out to their property, Section 50 of the Housing (Scotland) Act 2006 allows the Council to consider paying a ‘missing share’.

Payment is at the Council’s discretion and will be subject to criteria including the extent and scale of disrepair and available resources.

Missing shares are only paid for common repairs i.e. where title deeds show that the owners of two or more properties are responsible for repairs to the common parts of the block e.g. four in a block of flats or tenement flats.

A majority of owners must agree to the work being carried out and must show that  the correct procedure for agreeing to and paying for works have been followed before an application for a ‘missing share’ can be submitted to the Council. This will usually be in accordance with the title deeds for the property or the Tenement (Scotland) Act 2004 in circumstances where the title deeds are inconsistent or incomplete.     
 

The Private Sector Housing Unit (PSHU) deals with all applications and payments for the Council’s missing share service. The Council can consider payment of a missing share where:

• An owner is unable to pay in the funds for their appropriate share of costs or it is unreasonable to ask them to do so
• An owner cannot be identified or found, by reasonable inquiry (our Officers can assist with trying to trace absent owners) or
• An owner is unwilling to pay  their appropriate share of costs.
   

It is important that owners can show that they have followed  the correct set of procedures 
before the Council will consider their application.  Please note that the application must be made before works commence – The Council can not give consideration to any application if works have already begun.

Owners will need to show that: 

• The maintenance being carried out is reasonable
• A valid Scheme Decision has been taken in terms of the title deeds or Tenement (Scotland) Act 2004, as applicable, and that a majority of consenting owners agree to the works
• The result of the Scheme Decision taken has been notified to all owners and that any appeal periods have been observed. 
• Each owner is being asked to pay their correct share of the costs
• Written notice requesting payment has been provided to each owner, where they are traceable
• A ‘maintenance account’ has been opened, that is, a bank account set up to hold owners’ funds which is used to pay for any common repair and maintenance costs. The maintenance account should be interest bearing. The account should be set up by either the property manager (property factor) or at least two other people to authorise transactions on behalf of the other owners. The account provided to you through the Novoville Shared Repairs app can be used for the purposes of gathering funds from owners and receiving a missing share from the council.
• A person has been nominated (once the maintenance account is open) to write to all  owners, advising them that they have to deposit their share of the cost of work into the maintenance account. This process is referred to as serving a section 50 notice (s50). See more information for other owners below.
• An owner hasn’t paid their share of repair costs into the maintenance account by the final date for making payment  (a copy of the bank account or a screenshot of the account (Novoville) is acceptable).
   

As mentioned above, the Council can only consider an application for a missing share 
if it is satisfied that all owners have been provided with a section 50 notice. This is a
written notice setting out the following information: 

• Full breakdown of all maintenance which is needed
• Estimated start and completion dates
• When the maintenance was required and/or agreed (including the names of the owners who have consented and their house numbers
• An estimated cost of the work and why this is considered reasonable
• What the full share of the costs are for each owner, with an explanation of how this amount is reached (this detail should be found in the title deeds for the property or the Tenement (Scotland) Act 2004 in circumstances where title deeds are inconsistent or incomplete, if you have any issue with establishing the appropriate procedure or relevant shares to be paid by each property please seek the advice of a Solicitor, who will be able to clarify this for you).
• Evidence of the maintenance account, including details of where it is held (bank/building society/Novoville app)
• The last date  on which  owners  can pay their appropriate share into the maintenance account (this date must be included in the letters to the owners to ensure that all owners know the final date for payment))
• An owner or person nominated by the owners must prepare and issue their S50 notice. The Council cannot carry out this step for owners, if you need help with preparing this document please use the links below, which will give you templates and further guidance to guide you through the process, alternatively use the Novoville app which will take you through the full process.

• Request a Missing Share Application Form from the Private Sector Housing Unit (PSHU) (see contact details below). Your nominated person should do this.
• Complete the Missing Share Application Form, including a copy of each request for payment letter sent to the owners. We will also require evidence that the notices have been served on all owners.
• Return the form and any additional documents to us for consideration.
• You will also need to provide a bank statement from the maintenance account showing which owners have made payment into the account and the balance sitting in the account. The Council will only consider an application for missing shares where at least 51% of owners have paid their share of the costs into the maintenance account.
• The Missing Shares Service enables private property owners to undertake works to common parts of the property only.  Please note that no application will be considered if the repairs have already commenced.  If you intend to apply for assistance with missing shares on behalf of an unable/unwilling owner, this must be done prior to any works starting.

Once we receive a missing share application, we will contact any owner who has not paid into the account.

Owners who have not paid may be asked to provide details of their financial situation before the Council will make a decision on whether to contribute a missing share or not.

Owners who have not paid will also be advised of how the Council recovers the missing share along with interest and fees that apply.

If a missing share has to be paid on a property owned by a landlord their status as a fit and proper landlord may be affected.
 

If the Council chooses to pay a missing share on behalf of an owner the contribution made will be recovered through the Council’s debt policy and may result in an inhibition being placed on the title of the property owned by the non-paying owner.

The inhibition will remain on the property title and the debt will be recovered on resale or transfer of the property if this is not paid by the owner in full before then.

Any fees incurred by the Council in the process will be recharged as well as interest (the level of interest for the term of the repayment will be made clear from the outset of the recovery process).
 

There is no obligation for the Council to pay a missing share and we will only consider applications for missing shares subject to resources and Council priorities.

If the Council does not contribute a missing share, owners may still want to progress with works by covering the missing share between them and recovering their contribution from the owner privately.

Owners can get further advice on how do this from their local Citizens Advice Bureau, or their solicitor.

Citizens Advice Bureau or a solicitor will also be able to provide more advice on: - how to complete the process of issuing a section 50 notice and applying to the Council for any missing share - how costs should be split between owners according to the title deeds or Tenement (Scotland) Act 2004 - options such as serving a notice of potential liability, if appropriate, for recovering shares from non-paying owners
 

• Find out more about a section 50 notice 
• Find a Scottish lawyer via the Law Society of Scotland 
• Get further advice on recovering missing shares via the Citizens Advice Bureau 
• Novoville shared repairs  

Contact details:
Private Sector Housing Unit
Marischal College
Broad Street
Aberdeen
AB10 1AB
Email – privatehousing@aberdeencity.gov.uk