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When a neighbour won't pay: Edinburgh's missing shares

The missing shares scheme in Edinburgh lets the council consider paying a non-paying owner's share of a common repair, between £500 and £20,000, then recover the money from that owner.

By the Pipes Up the Stair site team · how pages are checked · Updated

Looking along a street of tall sandstone tenements with turrets in Polwarth
Polwarth Gardens.

Every tenement seems to have one: the owner who can't be traced, the landlord who never replies, the neighbour who simply refuses. Without their share the roof or soil stack repair stalls, and everyone else's flat suffers.

The City of Edinburgh Council runs a Missing Shares Service for exactly this, but it comes with strict conditions and no promise of payment.

What is the Missing Shares Service?

A way for the council to cover a missing share and chase it later. The council says that where an owner is unable to pay, can't be found or is unwilling, it can consider paying a missing share of the repair bill and recover the cost from that owner. The Tenements (Scotland) Act 2004 gave councils this power in section 4A, in force from 1 April 2015. Without it, Rule 5 of the Tenement Management Scheme leaves the other owners to pay the gap and recover it themselves.

Which buildings can use it?

Mainly unfactored tenements with three or more properties. The council's factsheet says it applies where title deeds show that the owners of more than two properties are responsible for the common parts. The council's shared repairs pages add that the title deeds should set out the shared areas and each flat's part of the bill. It approves factored buildings only in exceptional circumstances, and does not accept buildings with a housing association.

What must owners do before applying?

Set up the money side properly. The factsheet says owners must open a maintenance account and serve the notice it calls an S50 notice on every owner, and that the council cannot do this step for them. Under the Tenement Management Scheme, owners can require each other to deposit their share of an estimated cost, with no less than 28 days allowed; any deposit above £100, or above £200 across 12 months, needs written notice and must be held in a maintenance account.

How much needs to be paid in already?

At least 51% of owners must have paid their share into the maintenance account. Until then, the council won't look at the application. On a stair of eight flats, in practice that means at least five owners paying first.

How large can a missing share be?

Between £500 and £20,000 for each share. The factsheet says the minimum share which can be applied for is £500/share and the maximum is £20,000/share. A smaller unpaid amount stays for the owners to sort out among themselves.

When is it too late to apply?

Once the repair has begun. The factsheet is clear that no application will be considered if repair works have already started, so apply before the scaffolding goes up.

Does the council have to pay?

No. The factsheet says there is no obligation for the Council to pay a missing share, and payment depends on its resources. Plan the repair as if the money may not come.

How does the council get its money back?

Through its debt recovery policy. The owner who didn't pay is invoiced for their share plus a 10% admin fee, interest may apply, and the council may place an inhibition on their title.

£500

smallest share the council will consider

Source: Missing Shares factsheet

£20,000

largest share per owner

Source: Missing Shares factsheet

51%

owners who must have paid in first

Source: Missing Shares factsheet

Missing Shares checklist
ConditionWhat the factsheet says
BuildingOwners of more than two properties responsible under the deeds
FactorFactored buildings only in exceptional cases
Housing associationNot accepted
PaperworkMaintenance account and S50 notice, done by owners
TimingBefore work starts

Asked on the stair

Can a single owner apply for a missing share?

The process runs through the owners as a group: a shared maintenance account, notices to every owner and at least 51% paid in. One owner acting alone won't meet those steps.

What if the absent owner's share is £300?

That is below the £500 minimum, so the council won't consider it. The other owners would need to cover and recover it under the Tenement Management Scheme.

Does a factor managing the stair rule out the scheme?

Not completely, but the council approves factored buildings only in exceptional circumstances.

What law does the council rely on?

Its factsheet cites the Housing (Scotland) Act 2006, and section 4A of the Tenements Act sets out the power to pay a share.

Where this comes from

  1. City of Edinburgh Council: Missing Shares Service factsheet — eligibility, 51%, £500 to £20,000, recovery
  2. City of Edinburgh Council: Shared repairs and maintenance — what the service does
  3. Tenements (Scotland) Act 2004, section 4A — council paying a share
  4. Tenement Management Scheme — Rule 5, deposits and maintenance accounts
  5. City of Edinburgh Council: Shared areas — shares set out in the title deeds