Service Charge Arrears
If you do not pay your service charges you will be in breach of your lease and arrears recovery action will commence; arrears recovery action may result in additional charges being incurred and these will be added to your outstanding balance.
In line with Section 167 of the Commonhold and Leasehold Reform Act 2002, we may seek forfeiture of your lease if you do not pay your ground rent, service charges or administration charges (or a combination of them) and the total amount is more than £350 or you have owed arrears for more than three years. This means you would lose your property.
If you find that paying your service charges in full will cause you difficulty, the Council offers a number of standard repayment options to help manage the cost.
Even if none of the standard repayment options are suitable for your current circumstances, we may be able to agree a longer term arrears repayment plan which would be subject to reasonable additional management charges.
If your property is mortgaged, the Council may also approach your mortgage provider to arrange payment of your arrears. This will help to ‘consolidate’ your debts by adding the money owed to your mortgage balance and will avoid any need for court action.