Leaseholder on benefits and Major Works repair bill

SplinterCell

Hello,

I am leaseholder in a council block that is managed by my local authority. I am currently in receipt of income based Employment and Support Allowance (ESA). The major works repair programme on my block was recently completed and I am expecting to receive a bill in the region of £13k. Unfortunately since I am currently on benefits, I am going to find it difficult to meet the payment requirements on my own.

I would like to know if the DWP provide any financial assistance for bills of this type? I have heard mixed messages in relation to eligbilty. I recently read that the bill would be covered as a "service charge" if the major works were essential and carried out as part of a government funded programme (which I believe is true in my case), but I have also read that major works bills are treated as something entirely different and are not covered by the DWP. The yearly service charge for my flat is currently covered by the DWP, but I would really like to know if I can apply for financial assistance with the major works bill too?

I'm quite worried about this situation and I'm currently trying to explore other avenues of recourse. I would be grateful if anyone could provide some input.
I will be happy to provide more information if required.

AnnieO1234

The chances are they'll put a charge on your property; like a mortgage, but DWP won't help with major works as far as I am aware. Xxx

SplinterCell

AnnieO1234 wrote: »

The chances are they'll put a charge on your property; like a mortgage, but DWP won't help with major works as far as I am aware. Xxx

Have you heard of such a case before? My local authority keep telling me that I can seek help from the DWP.

Why would they say such a thing if it is a dead end?

Thanks for the input.

phill99

Because it gets you off their backs.

[Deleted User]

Why don't you go back to your LA and ask how why and where you get help with this money. Might give you a hint as to your next step.., who to contact to confirm what you have been told.

Or possibly contact your MP and ask him to enquire. Sometimes a letter from your MP can get more information than you can.

theartfullodger

You need to sort this as your freeholder is presumably also the council & if you don't get payment sorted or a plan-to-pay sorted you could have your lease "forfeited" (oh yes..) - and become homeless: Unlikely but possible.

What quotes or contracts or whatever were you given/signed/agreed before all this started??

Suggest contact local CaB for advice (or Solicitor is you have a few quid).

SplinterCell

deannatrois wrote: »

Why don't you go back to your LA and ask how why and where you get help with this money. Might give you a hint as to your next step.., who to contact to confirm what you have been told.

Or possibly contact your MP and ask him to enquire. Sometimes a letter from your MP can get more information than you can.

I have gone to my LA - I even have a leasehold caseworker advising me. And she told me to contact the DWP and said they will provide assistance. I have contacted the DWP and they told me that I should send in the final invoice when it is due and they will look at it since it would be treated as a "service charge".
I have recently read that if the major works is funded by a government funded programme then it will be covered by the DWP. The works on my block were done as part of the government's Decent Homes programme which aims to bring council properties up to a certain standard.
The problem is I have also heard contradictory information which suggests that major works aren't treated as service charges and are therefore not eligble for DWP assistance.

theartfullodger wrote: »

You need to sort this as your freeholder is presumably also the council & if you don't get payment sorted or a plan-to-pay sorted you could have your lease "forfeited" (oh yes..) - and become homeless: Unlikely but possible.

What quotes or contracts or whatever were you given/signed/agreed before all this started??

Suggest contact local CaB for advice (or Solicitor is you have a few quid).

I'm aware of that which is why I'm having many sleepless nights over it. And yes, my local council is the freeholder.
Didn't sign any contracts, received an estimated invoice last year and my life has unexpectedly gone downhill this year which will make dealing with this bill far more difficult than I thought it would be.
I'm not disputing the bill - as a leaseholder I'm aware that I have to contribute. It's just I am going to struggle to pay for it by myself and am just trying to see if I can get any help.

Thank you for the input.

Angie_B

Does your Freeholder have any information on their website or in a booklet about paying Major Works Bills? My old freeholder (Lambeth) used to have various options as they understood that people would not necessarily have tens of thousands of pounds to hand instantly.

Options included: instant payment (with discount); payments spread over 2, 4, 5 or 10 years; or having a charge put on the property so the bill was paid when the property was sold.

If the DWP cannot help, don't panic. There are options available that mean that you will not be hounded for the money instantly. Communication is key though - keep talking to your caseworker and make sure they know what you are doing to try to sort this out.

SplinterCell

Angie_B wrote: »

Does your Freeholder have any information on their website or in a booklet about paying Major Works Bills? My old freeholder (Lambeth) used to have various options as they understood that people would not necessarily have tens of thousands of pounds to hand instantly.

Options included: instant payment (with discount); payments spread over 2, 4, 5 or 10 years; or having a charge put on the property so the bill was paid when the property was sold.

If the DWP cannot help, don't panic. There are options available that mean that you will not be hounded for the money instantly. Communication is key though - keep talking to your caseworker and make sure they know what you are doing to try to sort this out.

Hello. I am not far from where you were - my freeholder is Lewisham council. And yes, the payment can be spread over a number of months - 36 months for bills over £10,000. However, assuming the bill is £13k, the monthly repayments over 36 months would still be incredibly difficult for me to meet by myself. The advice about getting financial assistance from the DWP exists on several London local authority leaseholder booklets.

I have also read case stories in other LA booklets where the entire bill was covered by the DWP. This is why I was hopeful, but I have also read that the bill would not be covered as major works don't count as eligble "service charges". This is where my confusion arises from.

The DWP are covering the regular annual service charge for the current year,
My caseworker has told me several times that the DWP do help leaseholders with major works bills. It's hard to not worry since I am in such a vulnerable position financially - on benefits, no family or parents.

I've been keeping an email trail with my leasehold caseworker since I was assigned one.

Thank you for the advice and input.