Your charges
Major works
Major works can take some time to complete. We will not usually be in a position to know the actual costs of works until the programme is completed and the contractor's accounts have been summarised, checked and audited. In the meantime, the council will estimate the amount payable by each leaseholder according to the value of the works programmed to be completed each year. You will then be billed for this amount. When the works are completed, your service charge account will be adjusted to reflect the difference between the estimated amount and the actual costs.
From time to time we have to carry out works to your estate or block to keep it in good condition. Major works can include refurbishing lifts, replacing windows or roof repairs, for example. You will always be consulted on any major works that we intend to carry out. This will give you an idea of the kind of costs that are involved and when you will be expected to pay them.
If you want more information on major works in the pipeline where you live you should contact the your Estate Manager in the Housing Department.
Ways to pay
We realise that not everyone will be able to pay bills for major works immediately, but there are various measures that you can take to make the payment easier.
Download the 'Easier Ways to Pay for Major Works' leaflet for more information.
A savings account
You can save towards the cost of major works, for example in a National Savings or bank or building society account. As soon as you hear about the works, you should put as much money aside as you can spare. Then, when you receive the bill, you will have money in your account to help pay the outstanding amount. Also, while you are waiting for the bill, you could be gaining interest on the balance in your account.
Claiming benefit
If you are a pensioner or are in receipt of state benefits such as Income Support or Job Seekers Allowance, you may be able to get help with the cost of major works. You should contact the Department of Works and Pensions (formerly known as the Benefits Agency) who will advise you on how to claim. You must apply promptly after receiving the bill, and certainly within one month, or you will not be entitled to benefit. If your claim is refused, you have the right to appeal against this decision. You should contact your Estate Manager in the first instance if you need help with your appeal. Again, you must act promptly to avoid losing your appeal rights.
Extending your mortgage, or borrowing through a new mortgage
You may be able to apply for an extension of your existing mortgage, but you will need to speak to your mortgage lender about this. If you do extend your mortgage to cover the cost of major works, the interest rate is likely to be better than that offered by the council's own Deferred Repayment Scheme.
A private loan
You can apply to your bank or building society, or other lenders, for a personal unsecured loan to cover the cost of the major works. Unsecured loans do not involve a mortgage, so your home is not directly at risk if you do not maintain the payments. But interest charges are generally much higher than a mortgage, so you should check carefully what level of interest and other costs you will be charged, whether you can afford all the payments, and what further costs or penalties may apply if you cannot do so. This may well be the most expensive option.
The Council's deferred repayment scheme
This is a loan scheme run by the Council and designed to help spread the cost of major works over an agreed number of years. Interest will be charged at a variable rate. You can choose the length of the loan which best suits your needs, provided that it is repaid well before the works are due to be renewed. For example, a loan for window repairs and repainting could be for only four years, but for a new roof it could be twenty. The loan will involve a council mortgage on your home, which will be separate from any other mortgage you may have. As with any other mortgage, your home may be at risk if you do not maintain the payments required. There is no initial charge for the scheme except the Land Registry fee, which is currently £50.
NB: This loan scheme is only made available to owner/occupiers.
Houseproud
You can apply for a loan from Houseproud to help with the cost of major works if you aged 60 or over, or a homeowner of any age who's disabled or has a disabled person living with them. There are a variety of loans available through the scheme, which are tailored to your individual needs. In addition, this loan scheme carries a guarantee of no repossession. For information: Telephone: 0800 783 7569 (freephone) or go to www.houseproud.org.uk
More advice
If you would like more information and/or advice about ways of paying for major works, you should contact the Finance Department (Income Collection Service) on (020) 8871 6297 or email debtorsaccounts@wandsworth.gov.uk. Please provide your full name, the address and postcode of the leasehold property concerned, your address (if different) and your service charge account reference number to help us identify you as the leaseholder concerned. A daytime telephone number will also be helpful.
If you would like independent advice about handling debts or money management, then you should contact the the CAB (details of which are in our "Easier Ways to Pay for Major Works" leaflet.
If you would like more detailed information about the major works which you now have to pay, then contact your Estate Manager in the Housing Department.
