Postponement of charge

If you bought your property through Right to Buy, the repayment of the discount you were given will have been secured by a legal charge against your property.  If you bought with a mortgage, the lender will also have secured the money it has loaned you through a legal charge on your property.

If you want to remortgage your property or get another secured loan during the discount repayment period, it is likely that your mortgage company will want you to get a postponement of charge. This means your remortgage or new loan takes priority over repaying the Right to Buy discount.

For us to agree to a postponement of charge your loan must be for an approved purpose as specified in Section 156 of the Housing Act 1985 (as amended by Section 120 Leasehold Reform, Housing and Urban Development Act 1993):

• carry out work to your property or to make improvements
• pay your service charge (including major works and buildings insurance)
• remortgage to change mortgage companies
• take out a loan to repay other loans secured against the property  to pay interest owed on a mortgage or remortgage

If the request is being made:

• during the Right to Buy application process, you will need a letter of postponement
• within the 5 year discount repayment period (but after completing Right to Buy), you will need a deed of postponement.

Islington Council’s interest is registered as a second charge and in the event the property is repossessed the repayment of the mortgage would take priority. The letter or deed of postponement would require Islington to reduce its interest in the property to a third charge.

Letters or deeds will not be approved for kitchen appliances, garden landscaping, conservatories or any other alteration prohibited by the lease.

See the home ownership administration fees in useful documents below.