Ways to pay estimated major works costs
Some major works costs can be high, so we offer more ways to pay for these.
You can pay as shown in your lease and make payments quarterly in advance on 1 April, 1 July, 1 October and 1 January, but we also offer these payment methods:
Both resident and non-resident leaseholders may pay over 12 interest-free equal monthly instalments by setting up a standing order.
If you're a resident leaseholder, you can also pay in instalments over any period between 12 and 36 months interest-free, depending on the estimated amount.
However, you must contact us on receipt of the invoice and complete and return the extended interest-free payment scheme agreement form before the 1 of April.
If the bill is more than £7,200, resident leaseholders may apply for an extension of the 36 months interest-free period to 48 months. For any estimated amount below this, you’ll only be entitled to up to 36 months maximum.
If you fail to make an agreed monthly payment you will receive a reminder letter.
If you contact us straight away, we'll usually reinstate the payment plan either requesting that you make the missed payment before reinstating the plan or setting up the monthly plan with a higher monthly figure to ensure all the payments are made according to the original schedule.
However, if you fail consistently to maintain your agreed monthly payments the installment option will be withdrawn and the whole of the outstanding debt will fall due immediately. Interest will be added until the balance is paid. The interest charged will be as stated in your lease (5% above NatWest base rate).
The extended interest-free payment schemes are restricted to resident leaseholders only. In those instances where leaseholders occupy an alternative dwelling as their principal home, the statutory and contractual repayment requirements as set out in the lease will apply. However, there is the option to apply for a discretionary loan, using the contact details provided on the invoice.
To apply for the extended interest-free agreement plan, complete and sign the below online form.
Service charge loan
This is effectively a mortgage on the property which can be repaid over a term of up to 25 years. Interest will be charged on the loan.
We will charge an arrangement fee to cover our legal, valuation and administrative costs, but this can be included in the loan. Obtain a quote on our service charge loan page.
Before you apply
You should first contact other lenders such as your mortgage company to see if they can offer you a loan. They might even be cheaper.
We offer additional ways to help you pay major works service charges. We can offset major works service charges by taking an equity share in your property, either by way of a shared ownership lease (equity share scheme under s309) or by way of a legal charge (equity loan scheme under s308). In both cases, we need to do a valuation of the property to see what the works cost as a percentage of the value.
Page last updated: 17 May 2023