Leasehold Debt Recovery Policy
Non-payment of service charges
Non-payment will be pursued as breach of covenant (terms of the Lease Agreement). We aim to prevent leasehold owners from accruing serious debt, which may lead to involvement of mortgage lenders in capitalising arrears, which could in turn lead to repossession. We will deal with non-payment of service charges with the same principles as applied by the corporate debt policy. However as leasehold is a specialist area there are a few further remedies available to the council when recovering debt.