Leaseholder FAQS

Leaseholder discounts for works confirmed after funding boost

The previous offer of discounts for resident leaseholders will apply to the full amount of £57.9m. For resident leaseholders (including shared owners) the contribution of the Council will have a 20 per cent reduction applied when rechargeable works are billed for.

The contribution from central government (£24.9m) will not be recharged to resident leaseholders. This equates to a 54.4 per cent discount for resident leaseholders who were residents at the time of the tragedy, and also at the time of being required to pay the charge. In addition, the maximum potential charge for resident leaseholders will be £15,000 over any five-year period whilst the government grant is utilised, and an extensive range of repayment methods will be put in place to ensure no one is financially stretched as a result of the refurbishment. Following a request from the Lancaster West Residents Association (LWRA), which has since been agreed at Leadership of the Council, non-resident leaseholders (e.g. Notting Hill Genesis and buy-to-let landlords) will be fully charged for the cost of works, including the government grant.
There is no limit on the level of recharge for these properties, however repayment options will be available. The table opposite summarises the full repayment options that will be available to leaseholders.

Major works payment options for Leaseholders 2023

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Leaseholder Repayment Options

Help to pay for leaseholders

If you are a resident leaseholder at the time of the tragedy, there are different options that may be available to you to help pay the remaining cost of the refurbishment.

You may be eligible to receive either a mandatory loan or a discretionary loan from the Council at differing rates of interest. Both loans can only be taken out for an amount of £500 or more and can be spread over a three to ten-year period.
Council loans Mandatory loan: Your lease is 10 years old and you have been charged more than £2,250 for any major repair work. The loan has interest added to it at the local authority mortgage rate. Discretionary loan: You have been charged for major repair work. You have to pay interest on the loan and the length of the loan depends on the value of the invoice. The loans are like a mortgage and a charge will be placed on your property. The land registry will be informed and in the event of you selling the property, the debt will be paid from the proceeds of the sale. There is also an option to secure a charge on your property.
Voluntary chargeIf you are a resident leaseholder who is retired or disabled, we can secure a charge against your property, although we would expect you to pay the legal costs and interest associated with this. We would recover the debt when your property is sold or transferred. Please note we would always encourage you to seek independent legal advice before placing a charge on your property.
Further options are available, including applying for a bank or building society loan, equity schemes and extending your mortgage at a better interest rate. Please note we would always encourage you to seek independent financial advice before signing any financial agreement. For more information, please contact lancasterwestoffice@rbkc.gov.uk