Major works repayment options

This page gives information about how we can help, you can also contact your Income Officer for advice or to arrange a payment. For your own protection, please also seek independent advice before entering into any financial arrangement.

Repayment options

We understand that some leaseholders will find it difficult to pay for major works. The payment options outlined below are designed to make it as easy as possible for you to pay your share. 

Within 12 months
If you pay your bill in full within the specified time period, you will receive a 2.5 per cent prompt payment discount.

Within two year, interest-free
You pay your bill in up to 24 instalments, over two years. The minimum monthly payment must be at least £100. This is the maximum payment period available to non-resident leaseholders.

Within three years, interest free
This option is available to resident leaseholders. Your home must be your only home. You pay your bill in up to 36 instalments. The minimum monthly payment must be at least £50.

Within ten years, with interest
This option is available for resident leaseholders. Your home must be your only home and the major works charge must be at least £10,000. You pay in up to 120 monthly instalments. No interest is charged for the first five years. Interest will be charged in years six to ten, a discounted rate which will vary in line with the Bank of England base rate. You will have to pay an administration fee for us to place a legal charge on your property. At a later date, you will need to pay another fee to remove the Council's charge. 

Council loans

There are two types of loan available from the Council; mandatory and discretionary. These loans spread the costs over a period of between three and 10 years and incur interest. The two types of loan available attract different interest rates, which may vary from time to time. Both types of loan can only be taken out for an amount of £500 or more:

The right to a mandatory loan
If your lease is less than 10 years old and you have been charged more than £2,250 for any major repair work, you may have the right to a loan. The loan has interest added to it at the local authority mortgage rate.

Discretionary loan
You may qualify for a discretionary loan if you have been charged for major repair work. You have to pay interest on the loan and the length of the loan depends on the value of the invoice. The loans are like a mortgage and we will have to put a charge on your property as security for the amount you owe. This means that we will tell the Land Registry that you have a debt against the property. If you then sell the property, your solicitor will know that you have a debt outstanding that will have to be paid from the proceeds of the sale. There are fees attached to this loan which can be added to the loan if agreed.

Voluntary charge

If you are a resident leaseholder who is retired or disabled, we can secure a charge against your property, although we would expect you to pay the legal costs and interest associated with this. We would recover the debt when your property is sold or transferred. Always seek independent legal advice before placing a charge against your property.

Other options

  • You may be able to extend your mortgage at a better interest rate than we can offer. If this is an option for you, and you can pay us within the timescale specified, you will be eligible for the 2.5 per cent prompt payment discount.
  • You could apply to a bank or building society for a loan or mortgage.
  • An equity release scheme, designed to free up cash based on the equity in your home (the equity in your home is the value of your property after the charges against it, such as the mortgage, have been taken off) may be an option. There are various equity release schemes available from financial institutions.

Always seek independent financial advice before signing a financial agreement.

Need help?

If you receive certain benefits you might be eligible for help with the cost of major works or help to pay interest on the amount you borrow to pay it. You will need to talk to the Department for Work and Pensions to see if you are eligible.

If you are struggling to pay for major work, please let us know as soon as possible. We can give you more information about the options available and try to find a solution.

Please note that major works are a part of your service charges as defined in the lease. Failure to pay service charges, where there is no dispute, will be breaking the conditions of your lease.