Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: November 19, 2025

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.