Purpose

To agree leaseholder repayment
options for capital and revenue charges including large capital
bills which cannot be paid in full upon request and require
instalment payment plans with interest free
terms.  

Content

Noted
repayment terms for annual revenue service charges
will remain unchanged at 10 months for resident and 4 months for
non-resident leaseholders.
 
Agreed
that late payment charges will be levied in relation
to annual revenue service charges if invoices remain outstanding
following the conclusion of the relevant repayment periods, this
aligns with the lease provisions and late payment
legislation. 
 
Agreed
to the following changes to leaseholder repayment
terms for capital major works:
 

o  
For leaseholders who live in their property:
a stepped repayment period based on the value of the capital major
works invoice, as set out at 4.4.2, with a 2-year interest free
period from the commencement of charges
 

o  
For leaseholders who are not resident in the home
(non-resident leaseholders): a stepped repayment period based
on the value of the capital major works invoice, as set out at
4.4.2, with no interest free period from the commencement of
charges
 

o  
For all leaseholders, interest payable on
capital major works invoices will be linked, in priority order,
to:
1.   
the relevant interest rate set out in the lease
provisions, or if no interest rate is specified,
2.   
the relevant Public Works Loan Board interest rate,
which is the loan funder of the Housing Revenue Account housing
capital programme
 

o  
For all leaseholders, offer a 5% discount for
paying capital major works invoices in full in the first
year
 
Requested
the Cabinet Member for Housing, Neighbourhoods and
Homelessness to review the approved policy in practice and report
back in 12-18 months.