Major works for leaseholders

Major works repayment options

These repayment options are only available to leaseholders that live in their leasehold property. If the property is rented you will not be eligible for financial assistance outside the terms of your lease.

Prompt payment discount

This is available for six weeks after the estimate costs are issued in the final section 20 notice.

You will be entitled to a 5% discount off the estimated costs.

Within one year  

Your lease allows you to pay interest free within one year. You pay in 12 equal monthly instalments from April to March only.

Up to three years' interest free

This is available if the estimated costs are between £1,000 and £5,000.

The repayment period is determined by the amount of the loan required.

The conditions of this option are:

  • No interest will be charged for first three years.
  • Payments must be made in equal monthly instalments.
  • Minimum payment is £150 per month.
  • Completed applications must be received by us within twelve weeks of receiving estimated costs (from your final section 20 notice).
  • After application, agreement letters need to be signed and returned before the payment plan can start.
  • Failing to make payments as per the agreement letter will result the agreement being withdrawn and the remaining balance will be due in full.

Three years to six years

This is available if the estimated costs are over £5,000.

The conditions of this option are:

  • The same as the conditions for the three years' interest free option.

And:

  • A legal charge will be placed on the property for the major works bill, for which an administration fee of £250 will be payable in advance. This charge will be removed when the bill has been paid in full.
  • Interest on the remainder of the charge will be the Bank of England base rate plus 1%.

Six years to eight years

This is available if the estimated costs are over £15,000.

The conditions of this option are the same as the conditions for the three years to six years option.

Eight years to ten years

This is available if the estimated costs are over £20,000.

The conditions of this option are the same as the conditions for the three years to six years option and the six years to eight years option.

Voluntary legal charge (securing the cost against your property)

This option is only offered to vulnerable people with financial difficulties where all other financial means have been explored.

A legal charge is placed on the property for the major works bill, for which an administration fee of £250 is payable in advance. This charge will be removed when the bill has been paid in full.

The interest rate will be 2.5% or the Bank of England base rate plus 1%, whichever is the greater.

There are two options for payment of interest:

  • No repayments until the property is sold. Instead, interest is ‘rolled up’ and paid back with the amount of the major works charge when the property is sold.
  • Pay monthly interest until the property is sold. You then pay back only the amount of the major works charge when the property is sold.

Further information

To talk to somebody about an invoice you have received, or the payment options available, please contact the team: 

Accounts Receivable Team
London Borough of Hounslow
PO Box 638
Hounslow
TW3 9UL

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