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Major works

Major works costs for leaseholders

As the owner of a property within a council block, you are responsible for a portion of the costs of major repair works, known as major works. These could include a new roof for the block, new windows or fire prevention measures, such as fire doors.

These charges are in addition to your usual day to day service and routine repair charges. If they are more than £250, we will need to consult with you (this is known as a ‘Section 20’ consultation).

Make a major works payment

How we calculate your costs

The amount you pay towards any communal major works costs is calculated using the Rateable Value (RV) of your property. The total RV of your block is divided by the RV of your property. This gives the percentage you will need to pay towards the total cost.

For example: If the RV of your flat is 232 and the RV sum of all the flats in the block is 2768, your percentage of the major works cost would be 8.38 per cent (232 divided by 2768) x 100. So, if the major works cost is £221,047.17, your contribution to the cost would be £18,523.75 or 8.38 per cent of the total block cost.

To find out the Rateable Value of your property go to the Valuation Office Agency.

Example of a calculation in a Section 20 consultation notice:

£ 221,047.17   x   232 (Rateable Value of Flat)   =  £18,527.07
                                2768 (Rateable Value of Block)

An estimate of the major works costs is provided as part of the Section 20 consultation. When the work is complete you will be invoiced for the actual cost of the works, which may be higher or lower than the estimate.

Leasehold financial assistance

We offer a support package to leaseholders in council-owned blocks for major works costs.

For non-resident leaseholders, payment is due within 14 days of the invoice. In certain circumstances, we may consider an extended repayment term of up to two years with interest.

For resident leaseholders, there is a two years’ interest-free repayment agreement from the date of work costs being invoiced. Additional payment terms are below, to cap contributions at £300 per month with interest payable:

  • £7,200 to £10,800 up to three years
  • £10,801 to £14,400 up to four years
  • £14,401 to £18,000 up to five years
  • £18,001 to £21,600 up to six years
  • £21,601 to £25,200 up to seven years
  • £25,201 to £28,800 up to eight years
  • £28,801 to £32,400 up to nine years
  • Above £32,401 up to ten years

There is also a five per cent prompt payment discount for payment within 14 days of an invoice being raised. Voluntary pre-payments can be made by leaseholders to achieve this.

Interest rates are variable and based on the council’s rate of borrowing. Rates are set for each year from 1 April to 31 March. Interest will be calculated monthly and added to your major works account. 

For more information, email the team.

You can also get financial advice by contacting any of the following organisations: