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Financial difficulties and assistance with payments
If you are having financial difficulties it is important that
you do not ignore it, help and advice is available for you.
Advisors at the Benefits Agency can give you guidance and help you
manage your financial commitments.
Assistance with payments
Under the Housing
(Service Charge Loans) Regulations 1992, right-to-buy
leaseholders have the right to a loan in the first 10 years of
their lease.
Loans are only available for charges relating to repairs and
improvements. The conditions of the loan are subject to the amount
of service charge you are required to pay in any one financial
year, including contributions to major works. The amount of loan
you are entitled to is adjusted annually by reference to the retail
price index. For information on the current conditions of the loan
please contact your home ownership officer.
We will let you know if you qualify when we send a service
charge demand.
The Mandatory Reduction in Service Charges (MRISC)
MRISC is legislation designed to protect leaseholders when
government funds are allocated to regeneration areas. An example of
this type of government initiative fund is New Deals for
Communities (NDC). If works are carried out to your property/block
we have to reduce the service charges if charges exceed £10,000 in
any five year period.
Claiming benefits
There is a range of benefits that you may be entitled to, either
to pay directly for your housing costs or to increase your income
more generally. Specifically, you may be eligible for assistance
with ground rent and service charge payments if you receive Income
Support. Eligibility will depend on individual circumstances.
For further advice please contact:Leasehold Advisory Service
Phone: 020 7383 9800 (lines are open Monday to
Friday from 9am to 5pm)
Payments by mortgage lenders
Many leaseholders will have a mortgage with a bank or building
society. The mortgage lender will often be prepared to add debts of
ground rent and service charges to the existing mortgage and pay
us. However, if you are also in mortgage arrears, the mortgage
lender may be unwilling to consider this. They may also be
unwilling to consider making such arrangements on more than one
occasion.
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