Major Works service charges payment plans
To provide support to our leaseholders we offer the following payment options for our major works service charges;
| Invoice | Term | Payment options available |
| Up to £2,000 | 12 months | If your invoice is under £2,000 you can spread your payments over 12 equal monthly payments. No interest is charged. |
| £2,000 and above | 24 months | If you receive an invoice for more than £2,000 you can spread payments over 24 equal monthly payments. You must complete an extended payment instalment form. No interest is charged. |
| £2,000 and above (Resident Leaseholders only) |
60 months | If you receive an invoice for more than £2,000 you can spread payments over five years in 60 equal monthly payments. This option will not be made available where the property is sublet, owned by a company, or owned by a housing association. You must complete an extended payment instalment form. No interest is charged. |
| £20,000 and above (Resident Leaseholders only) |
120 months | If you receive a bill for more than £20,000 you can spread payments over ten years in 120 equal monthly payments. No interest is charged for months 1-60. Interest is charged on the balance remaining at month 60 at 1.5% above the Bank of England Base rate for months 61-120. This option will not be made available where the property is sublet, owned by a company, or owned by a housing association. You must complete an extended payment instalment form. |
| £20,000 and above | 300 months | If you receive a bill for more than £20,000, Westminster City Council is now offering a Discretionary Service Charge loan, available to all leaseholders who are unable to secure borrowing from their mortgage company or a personal loan. This option will not be made available where the property is owned by a company or owned by a housing association. Where the property is sublet, we will review the application on a case by case basis. The service charge loan will be secured by a way of a legal charge on the property for a maximum of 25 years. Interest will be charged at a variable rate of 1.5% above the Bank of England base rate and will be reviewed annually. You will also need to pay the administration costs involved. Westminster City Council is only a lender of the last resort. |
| £20,000 and above | Voluntary Service Charge Loan | If you receive a bill for more than £20,000, Westminster City Council is now offering a Voluntary Service Charge loan, available to leaseholders who meet the eligibility criteria, including a financial assessment, financial hardship and those who are unable to secure borrowing from their mortgage company or a personal loan. This option will not be made available where the property is owned by a company or owned by a housing association. Where the property is sublet, we will review the application on a case by case basis. The service charge loan will be secured by a way of a legal charge on the property. Interest will be charged at a variable rate of 1.5% above the Bank of England base rate and will be reviewed annually. The administration fees to set up the loan and to register the charge against the property can also be added to the loan. |
If you have any questions about your major works service charge invoice and how to make payment, please do not hesitate to contact Leasehold Operations directly where our staff will be able to discuss the payment options available to you. Our friendly team are waiting for your call.
Telephone: 0800 358 3783
Email:[email protected]
