Major works – choice of payment methods

As some major works costs can be high Southwark Council offers more ways to pay than for other service charges.

You can pay as set out in your lease and make payments quarterly in advance on 1 April, 1 July, 1 October and 1 January, but we also offer these payment methods:

• you can pay in 12 equal monthly instalments, interest-free.
• you can also pay in instalments over any period between 12 and 36 months without interest being added. But if you miss a payment, you’ll immediately have to pay the whole of the outstanding debt, and interest will be added until the balance is paid. The interest charged will be as stated in your lease (5% above NatWest base rate).
• you can pay by instalments over any period between 36 months and 10 years, but interest will be added monthly to the outstanding balance. Also, because this is an unsecured debt, the interest will be as stated in your lease (5% above NatWest base rate).
• if your financial circumstances mean that you can’t pay your major works charge using any of the above schemes, we may agree to put a voluntary charge on the property. This means that you don’t have to make any payments, but the amount of the charge, plus interest, will be secured on your property and paid when it’s sold.Service charge loansYou can also approach your mortgage company or another lender, who may be able to offer you a better deal.
• Last updated: 01 July 2016
• You can also apply to Southwark for a service charge loan . This is a mortgage on the property and can be repaid over periods up to 25 years. We’ll charge interest and  an arrangement fee to cover our legal, valuation and administrative costs.
• Please contact Southwark Home Ownership if you want to pay by any of these payment methods.

(details correct as at January 2017 – taken from the Southwark Council website)