Decision details

To consider additonal payment options.

Executive Summary

The last review of major works service charge payment plans was undertaken in January 2023. Following this the Cabinet Member for Housing Services extended the 60-month payment plan to 120 months (60 months interest free, with up to an additional 60 months, subject to interest). As part of this review a discretionary service charge loan option was also introduced enabling leaseholders to pay their major works service charge invoice using a legal charge against the property and to make payment over a period up to 25 years, subject to interest.

Summary of Decision

1.  The Cabinet Member for Housing Services has agreed to the introduction of the ‘Voluntary Service Charge Loan’ payment option for leaseholders.
2. The Voluntary Service Charge Loan will complement the existing payment plans available to our leaseholder and will allow a charge to be placed on the property. The capital sum and any interest will only be repaid when the property is sold (assigned). The fee to set up the loan and to register the charge against the property can also be added to the loan
3. The Cabinet Member for Housing Services has agreed to the eligibility criteria (paragraph 4.6) and the recommendations from Finance (paragraphs 5.1 – 5.8) as to which bill range is sustainable