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Leasehold Debt Recovery Policy

Payment options

Where payment cannot be made in one single payment leaseholders will be offered standard payment terms as follows:

Invoice AmountPayment Terms
Invoices less than £250Immediate Payment(within 28 days of invoice
Invoices between £250 and £750By following March 31st (end of Service Charge year)
Invoices between £750 and £1500Up to 12 Monthly payments
more than £1500Up to 18 Monthly payments

If payment is not able to be made under these standard terms the council may, in cases of financial hardship, agree to discretionary arrangements for payment of debts owed. In these instances the matter should be referred to the Housing Income Manager for consideration of the case and leaseholder circumstances.

Evidence of financial position i.e. income and expenditure will be requested and assessed prior to any discretionary payment terms being agreed.

Example terms that may be agreed:
Discretionary Payment Terms
  • Extension of the standard payment terms depending on the amount due and circumstances of the leaseholder.
  • Voluntary Property Charge on the leasehold property which delays payment of the charges due until the property is sold or transferred at a future date.
    N.B. A property charge will attract interest charges and legal fees
Service Charge LoansInvoices of more than £1500 may qualify for a Service Charge loan. This is available during the initial ten years of the original lease being granted. Interest will be payable on any loan granted at the local authority lending rate set by central government.
Please refer to Leasehold & Sales Team for further information.
Optional WorksIf the council has agreed to include optional works for leaseholders, for example new windows (where the responsibility for windows sits with the leaseholder and not the council).
Payment terms will be up to a maximum of 18 months from the date of billing (billing occurs upon completion of the works).

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