Major works to your home

We carry out major works in order to maintain and improve our housing stock.

Payment options for major works 

Options

We have a range of options for you to pay your major works service charges:

Option 1 - Prompt payment discount

If you are a resident leaseholder and the property is your main home, this option offers a 5% discount off the total cost of the major works service charge invoice.

You must settle 95% of the invoiced sum by the end of the financial year in which you received your estimated major works service charge invoice.

To take advantage of the prompt payment discount, 95% of the invoiced amount must be paid within six weeks of receiving the invoice or in 12 equal monthly instalments from April through to the following March. This option is only available to resident leaseholders, where the property is their main home.

Upon receipt of 95% of the invoiced sum, we will apply the 5% discount to the account.

To apply for this option, you will need to download, fill in and return the prompt payment discount agreement form.

Option 2 - Interest-free instalments over 12 equal monthly instalments

You can pay over 12 equal monthly instalments, interest-free, if:

  • you are a resident leaseholder
  • the property is your main home
  • your major works service charge invoice sum is under £3,000.

To apply for this option, you will need to complete the standing order mandate instruction form sent with your major works service charge invoice. You must start making payment immediately.

Please note: If any service charge which is due remains unpaid for 14 days, we may apply interest at the rate of 4% above the base rate.

Option 3 - Interest-free instalments over 24 months

You can pay over 24 equal monthly instalments, interest-free, if:

  • you are a resident leaseholder
  • the property is your main home
  • your major works service charge invoice sum is between £3,001-£7,500.

This period may be extended to 36 months in exceptional circumstances.

To apply for this option, you will need to complete the standing order mandate instruction form sent with your major works service charge invoice. You must start making payment immediately.

Please note, if any service charge which is due remains unpaid for 14 days, we may apply interest at the rate of 4% above the base rate.

Options 4, 5 and 6 - Discretionary loans (interest-free and interest-bearing)

  • Options 4 and 5 - Take out an interest-free discretionary loan for 48-60 months with the length of time depending on the value of the loan.
  • Option 6 - Take out an interest-free discretionary loan for 60 months with an additional 72 months added incurring interest in accordance with your lease for invoices of £20,001 and over.

We may agree to an interest-free loan, if you agree to have a charge registered against your property. Options 4, 5 and 6 offer leaseholders the opportunity to access loans from the council in order to meet the costs of the major works service charge invoice.

There are three possible loan options. How long you have to repay the loan depends on the amount you need to borrow.

  • Option 4, loan amount £7,501 to £15,000: 48 months to pay
  • Option 5, loan amount £15,001 and £20,000: 60 months to pay
  • Option 6, loan amount £20,001 and over: 60 months to pay with an additional 72 months available (interest bearing)

Please note: The interest rate payable on Option 6 will be fixed at 4% above the council’s banker's variable base rate. The council’s interest rate will be fixed as at the date you take out the loan and will remain fixed at the same rate for the life of the loan. However, the Bank of England rate may vary, so the interest charge will change in line with these changes.

To apply for this option, you will need to request a service charge loan application form from us. Fill it in and send it back with a copy of a letter from your bank or building society refusing you a loan.

We strongly recommend that you always get independent financial advice and talk to your mortgage provider (if you have one) before you sign any financial agreement.

Option 7 - Deferred payment with a charge on your property

We may agree to defer payment if a charge is put against your property. This option is available primarily for those households where the leaseholder is over 60, disabled or can show that there is insufficient income coming into the household in order to meet the costs of the major works service charge invoice.

Option 7 means that you do not have to make payments towards the major works invoice. The debt will ultimately be repaid when the property is sold or assigned, for example, with a remortgage or a transfer of equity.

Please note: The interest rate payable on Option 7 will be fixed at 4% above the council’s banker's variable base rate. The council’s interest rate will be fixed as at the date you take out the loan and will remain fixed at the same rate for the life of the loan. However, the Bank of England rate may vary, so the interest charge will change in line with these changes.

There is a standard administration fee of £452 (correct at April 2017) on loans of any length or amount. There is also an administration fee to redeem the loan of £200.

To apply for this option, you will need to:

  • request a deferred payment application form
  • provide us with a copy of the letter from your bank or building society refusing you a loan.

We strongly recommend that you always get independent financial advice and talk to your mortgage provider (if you have one) before you sign any financial agreement.

Contact us

For more information on any of the major works payment options, please contact us directly on: