Service Charge Payment Policy Approved

A ‘Service Charge Payment Options Policy’ was today approved by Wrexham Council for leaseholders who have flats under the ‘Right To Buy’ scheme.

The aim of the new policy appears to be to assist leaseholders cover service charge costs via statutory or discretionary loans.

The Council could own a block of flats, however leaseholders have bought the flats inside the building. This could trigger large bills for repairs or improvements to the block as a whole.

Wrexham Council currently have leased around 450 flats to former tenants who have purchased their properties under the Right To Buy legislation.

In some cases individual leaseholders can be asked to pay up to £6,000 for their share of the cost of refurbishing their block of flats.

The new policy will allow a discretionary loan , which the Council say is aimed at those aged 60 or over, or those on low incomes. The loan would be secured against property. The policy will also allow interest free installments.

The new loans though will have ‘administration fees’ varying from £100 to £200, with the latter appearing more common.

It is therefore possible the Council could offer a loan for £250 with an administration charge of £200 on top, with the total £450 due inside 12 months.

The full report can be found here…