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.
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 charge
If 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
Leaseholders Frequently Asked Questions
What could the Council actually charge leaseholders for?
Which parts of the buildings are ‘common parts’?
How will leaseholders be consulted on how proposed future works are specified?
How does the Section 20 Consultation work?
When will we know what will and won’t be potentially recharged?
How will the Council calculate overall refurbishment costs and how will this be broken down as charges for leaseholders?
Who can I contact for independent advice?
Improving Leaseholder Services: An Overview
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