Leaseholders Payment Options (Major Works) Policy
Statement of intent
The Council owns the freehold of the building that the flat or maisonette is in, and is responsible for the upkeep of it. Leaseholders are required to contribute towards the cost of maintaining the structure of the building and common areas under the terms of their lease.
Leaseholders pay for the smaller works, for example, cleaning and general day-to-day repairs as a part of their annual service charges. Where the service charge is payable for larger scale works, these charges are commonly referred to as ‘major works’ charges.
These kinds of work can include (but are not limited to):
- Decoration of the block
- Window and door replacement
- Roof replacement/refurbishment
- Lift replacement/refurbishment
- Insulation work
- Communal rewiring
- Fire Safety upgrade works
The Council has a duty to maintain its housing stock, and as such leaseholders are required to make a contribution towards repairs and improvements carried out in their flat block. In doing so, the Council must ensure that the full costs for works under any major works programme are fully recovered as soon as possible.
It is important that a range of payment options are available to assist leaseholders, and that any failure to pay does not unduly impact upon other residents who have paid their contributions.
To make sure that these costs are recovered in an efficient way, the Council has adopted a comprehensive approach to recovering costs due from leaseholders, and in doing so is committed to ensuring that all leaseholders are aware of the range of options available to them and the actions that the Council will take to recover major works contributions.
This policy covers the range of payment options for major works which will be offered on behalf of the Council:
- Recognises and reflects the need for a variety of options to assist leaseholders to pay.
- Acknowledges the importance of recovering full costs of services so as to prevent delay to future services and works programmes.
- Is compliant with the terms of the lease the relevant legislation.
- Takes into account good practice guides.