Major Works

Paying for major works

Every building needs major works carried out to it now and then to ensure it is properly maintained and retains its value.

As we improve our properties and these works are carried out, under the terms of your lease you will be charged with a proportion of the cost. The work can be costly and the unwelcome charges difficult to pay as a single sum without causing financial hardship. For this reason, the Council has worked with leaseholders to agree some new payment options we hope will ease the burden and be more favourable to leaseholders than the terms of the lease. This leaflet sets out how the Council can assist in minimising the financial hardship for you.

How will I be invoiced

We will consult you before any work is carried out and tell you how much we estimate you will be asked to contribute towards the work. This estimate is based on the tender we select from the options submitted.

We will only invoice you once the work has been completed.

To ensure the final invoice is in line with what you were expecting, based on the estimated costs, we will not issue a final account invoice that is more than 20 per cent greater than the estimate provided when we consulted you on the works.

Payment options summary

The below table details some of the main changes we have made to the payment options available to leaseholders. These measures are designed to help leaseholders pay the invoices for major works on their properties.

The updated options	What's changed?
If you are a resident leaseholder and this is your only home, you can spread your payments over a maximum of 20 years* for invoices of £40,000 or more.	This was previously 10 years.
If you are a resident leaseholder, and this is your only home, you have a 5-year interest free period over which to pay your invoice.	This has increased from a 2-year interest free period.
If you are a non-resident leaseholder, you can spread your payments over a maximum of 3 years* for invoices of £40,000 or more.	This was previously 2 years.
If you pay your bill in full within 12 weeks of the invoice date, you will receive a 5 per cent prompt payment discount.	This has increased from a 2.5 per cent discount.
If you are a resident leaseholder, and this is your only home, the maximum amount we will ask you to pay monthly for major works is capped at £500.	The maximum monthly costs were previously uncapped.
We have a flexible approach to overpayments, so if you’re able to, you can pay lump sums towards your invoice, in addition to your monthly payments, without penalty, whenever you wish.	Previously we had no policy for overpayments.
To make use of the extended payment options on invoices of £15,000 or above, you will need to agree to the invoice being secured to your property by way of a charging order for which a fee of £240 is payable.	We’ve raised the threshold from £10,000 to save you time and administration fees.

*Please note, where applicable, interest will be charged at Bank of England base rate plus one percent, and will be reviewed annually.

Ways to pay

Whichever method you choose to pay, you will need to quote your 11-digit payment reference number. You can find this on your invoice.

Online

Make one-off payments on our website.

Over the phone

Use your debit or credit card to make a one-off payment over the phone, by calling 0203 974 4670 and selecting option 6.

Direct debit monthly payments

Set up monthly payments to leave your bank account so you don’t need to think about it. This can be set up over the phone by calling 020 7605 6464.

Via internet banking

Using the Council’s sort code: 57-20-40 and account number: 00000000.

By cheque

Make your cheque payable to “Royal Borough of Kensington and Chelsea” and put your 11-digit payment
reference number on the back of the cheque.

Help if you are having difficulty paying​

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 talk to the Department for Work and Pensions to see if you are eligible.

If you are struggling to pay for major works to your building, please let us know as soon as possible. We are here to help and can give you more information about the options available and discuss solutions. This could include securing a charging order against your property, extending your mortgage at a better interest rate, applying to a bank or building society for a loan, or signing up for an equity release scheme.

Contact us on 020 7605 6464 or email [email protected]

Please note that major works costs are a part of your service charges as defined in your lease. Failure to pay service charges will be breaking the conditions of your lease.

Struggling with debt?

If you are having problems with debt, lots of organisations provide advice and information packs that can help with this. For example:

National Debtline

To download a pack from National Debtline, visit www.nationaldebtline.org.

Step Change Debt Charity

Get expert debt advice by calling 0800 138 1111, Monday to Friday, 8am to 8pm, and Saturday,
8am to 4pm. To make use of free online debt advice, visit www.stepchange.org.

Kensington and Chelsea Citizens Advice

Call 0300 330 1174 or visit www.citizensadvice.org.uk/local/kensington-chelsea