Payment For Major Works
EastendHomes will invoice you for the estimated costs as detailed on your Stage 2 (Section 20 notice). This invoice will be issued in the April of the year that EastendHomes estimates it will incur the cost of the major work.. Under the terms of your lease you have agreed to pay towards reasonable estimated expenditure before the costs have been incurred. EastendHomes will then serve a final account once the work has completed and the final costs are known.
A full set of our accounts will be available for you to inspect and we will provide you with a breakdown of the costs.
We will deduct any works that you will not be changed for such as internal works to tenanted properties.
Providing Assistance to Leaseholders
We acknowledge that paying for major works can put a significant financial burden on many leaseholders. We offer a number of repayment options. If you are worried about how you will be able to pay for the works, make an appointment to see an Officer from the Home Ownership Team, who will discuss the repayment options with you.
Some leaseholders may choose to pay for the cost of the works in full within 28 days.. Leaseholders who pay the cost of works in this way will be given a 5% discount.
Interest-free by Direct Debit
All estimated invoices can be paid over the time specified in the S20 notice interest free. The repayment terms are a maximum of four payments over one year.
Charge on the Property
This option is principally aimed at leaseholders of a pensionable age, who live in the property, are in receipt of a state pension and who do not have a mortgage or loan registered on their property. EastendHomes will take a stake in the property equal to the value of the major works.
Some leaseholders will be eligible to have the cost of their works capped at no more than £10,000 provided that they fulfil all the following criteria:
• The property must be the leaseholder’s only or principal home and the leaseholder must occupy the property
• The leaseholder must be the original Right to buy purchaser
• The leaseholder must not have any service charge arrears
• The leaseholder must be in receipt of a state pension or disability benefit
Where a major works invoice exceeds £10,000 and a leaseholder, after an independent financial assessment covering income, expenditure, and savings, is found to be in hardship, they will be allowed to pay a percentage of the total cost of the major works that is deemed reasonable. The agreed repayment plan should enable the major works invoice to be cleared in two years or when the lease is transferred or the property sold if sooner.