Decision details

Payment Options For Leaseholders Receiving Major Works Invoices

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

Reviewing the current payment options and seeking approval to extend the payment periods in line with the value of the invoice received.

Decision:

1.            That approval be given to offer the following menu of payment options for resident leaseholders and for non-residential leaseholders who do not sublet more than one Hammersmith & Fulham leasehold property where the property is owned by individuals[1]:

 

 

Invoiced amount

Interest free period available

Interest bearing period available

Total repayment period

> £7,500 < £12,500

36 months

48 months

84 months

> £12,500 < £17,500

48 months

60 months

108 months

> £17,500

48 months

72 months

120 months

 

2.         To agree to an interest rate for leasehold payment options based on 0.25% above the average council lending rate[2] for the previous year for the above.

 

3.         To delegate authority to the Lead Director for Regeneration Planning & Housing acting through the Director of Finance & Resources (Regeneration, Planning & Housing), in consultation with the Cabinet Member for Housing, to consider any applications from leaseholders on the grounds of extreme hardship to vary the length of repayment periods.

 

4.         To delegate authority to the Lead Director for Regeneration Planning & Housing, in consultation with the Cabinet Member for Housing, the ability to agree payment plans on a project by project basis where leaseholders estimated bills are likely to be in excess of £22,500

 

5.         To approve a change to the terms for discretionary loans to allow a maximum loan period of 25 years.

 

6.         To approve that any loan or repayment plan for a sum of £12,500 or above to be secured as a voluntary charge on the property.  The administration cost associated with this should be borne by the applicant and will be £150.

 

 


[1] i.e. the options will not be available properties owned by a company, trust or similar vehicle.

[2] This is the rate at which the Council could borrow from PWLB for the period of the loan granted to the leaseholder at the time of lending or at the start of the year as appropriate. It cannot be lower than 3.13%.

Report author: Jana Du Preez

Publication date: 07/03/2018

Date of decision: 05/03/2018

Decided at meeting: 05/03/2018 - Cabinet

Effective from: 12/03/2018

Accompanying Documents: