Payment options for major works

Major works are repair, replacement and improvement works such as replacing lifts or windows, where the charge is £250 or more. We consult home owners about major works before they are carried out. 

Discount for paying your major works invoice sooner

We will give you a 5% prompt payment discount if you pay 95% of your charges within 12 weeks of receiving your invoice.

You can also set up a payment plan that comes out by Direct Debit if you can meet the conditions for the one you want.

Payment options

Up to five years interest-free

This option is available to all leaseholders.

There is no:

• minimum monthly payment
• interest
• legal charge. 

Up to 10 years, interest bearing

This option is available to you if:

• this is your only home
• charges on your invoice are at least £6,000 or for works related to communal heating systems

This option includes:

• interest - this is only be charged from year six onwards at the Bank of England base rate
• an admin fee to place a legal charge on your property - in some cases you must pay a fee to your lender
• an admin fee to remove the legal charge when you have paid the invoice. 

Up to 25 years, interest bearing

This option is available to you if:

• this is your only home
• charges on your invoice are at least £15,000.

This option includes:

• minimum monthly payments of £50
• interest - this will only be charged from year six onwards at the Bank of England base rate
• an admin fee to place a legal charge on your property - in some cases you must pay a fee to your lender
• an admin fee to remove the legal charge when you have paid the invoice.

Help and support

If you are struggling to pay your major works invoice, contact us as soon as you can. We can help you with more information and to discuss with you the options available. This could include applying to the Department for Work and Pensions, securing a charging order against your property, extending your mortgage or applying to a bank or building society for a loan.

Email HomeOwnership@islington.gov.uk

Department for Work and Pensions assistance

If you receive certain benefits or are on a low income, you might be eligible for help with the cost of major works or help to pay interest on the amount you borrow to make a payment.

You will need to contact the Department for Work and Pensions (DWP) to see if you are eligible. You must apply to the DWP within one month of receiving your major works invoice.

Placing a voluntary legal charge on your property 

This option is available if:

• this is your only home
• charges on your invoice are at least £3,000
• you are over 60, on disability benefits, or unable to pay through the other payment options
• you have enough equity in your home to cover the invoice amount.

This option includes:

• an admin fee to place a legal charge on your property - in some cases you must pay a fee to your lender
• an admin fee to remove the legal charge when you have paid the invoice
• interest at 1% more than the Bank of England base rate.

You can either:

1. make no payments until the property is sold. The interest will be ‘rolled up’ and recovered with the major works charge when the property is sold, or
2. pay the interest every month until the property is sold and pay the major works charge when the property is sold.

Buy-back

This option is available if:

• this is your only home
• you can't fund payments through:
  • a mortgage
  • a loan
  • DWP
  • charge on the property
  • any other payment options.

We will assess cases individually. This option depends on funds we have available.

Hardship capping

This option is available if you:

• are experiencing exceptional hardship
• have no alternative access to funding the full amount
• have been affected by other unexpected circumstances that are stopping you from paying.

We will assess cases individually.