Latest member question: voluntary charges for leaseholders

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We currently offer a Voluntary Charge for those leaseholders who claim to be experiencing genuine financial hardship when they are in receipt of a Major Works invoice. I would be interested to know what system members use to define genuine financial hardship.

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Author: Claire Hicks
Posted on: 29 August, 2024

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Suzy Histon

2 years ago

Hi Claire

You might be interested in our upcoming event: https://hqnetwork.co.uk/events/leaseholder-debt-supporting-homeowners-recovering-arrears-3/?swcfpc=1

We have posted your question in our Leasehold Network WhatsApp group and received three responses so far:

• We use a basic income and expenditure form which you can download from CAB or Stepchange. If they can’t afford the payments that opens up other options. Some landlords ask for evidence that the l/h has applied for mainstream credit and been refused, before offering extended payment. A lender can do a soft credit search that will give an answer and won’t affect the l/h’s credit rating
• Currently waiting for our payment options policy to be reviewed but we have asked for: If they are in financial hardship we ask in addition to an income and expenditure form being completed we will be asking for the last 6 months of all bank account statements; mortgage statement; if applicable tenancy contract (subletting); deferred arrangement to be signed and witnessed and we would look to potentially extend a payment plan up to 10 years via DD only. If they’re willing to submit all of that the evidence should support their financial hardship claim. If they couldn’t afford that than we would potentially look at a charging order with interest
• I have the same process as above. We complete an income and expenditure and can offer deferred payment if it is deemed necessary by Officers. With this we charge a land reg cost and redemption figure which gets added to the total and can be paid off later down the line. We offer up to 10 years on larger bills but for standard invoices before deferred agreements we base it on £83.33 pcm (£1k per year approx)

If you’d like to join the chat reach out to me on [email protected]

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Latest member question: voluntary charges for leaseholders

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