Property and deferred payments

Fees and charges

Interest

The loan amount will have interest charged on it and this is linked to the cost of Government borrowing which is reviewed on 1 January and 1 July every year.

The interest will be compounded daily and will be added to the balance on a weekly basis. Interest will apply from the day you enter into the Deferred Payment Agreement. Please contact our Client Finance Team for the current rate of interest.

Admin fees

We apply an administrative fee for arranging the Deferred Payment. The fee covers the costs of providing the deferred scheme as well as the legal costs, Land Registry fees for registering a charge, the property valuation costs and staffing costs. You will be notified of the fee amount, and it will be included within the Agreement.

You can choose to pay the administration fee upfront or add it to the Deferred Payment Arrangement. Please note, if you choose to defer the fee by adding it to the agreement, interest will accrue on this amount.

The administrative fee is non-refundable once you have advised us of your intention to proceed with the Deferred Payment Agreement.

How will I know how much I owe you?

You will receive bi-annual deferred payment statements from us. These statements will tell you how much you owe, including any administration charges, interest, and how this has been calculated.

Will I have a formal agreement with the Council?

Yes, if the Deferred Payment Agreement is confirmed, you will enter into a legal agreement with the Council by signing a deferred payment agreement document. We will then place what is called a ‘Legal Charge’ on your property to ensure the loan is secured. You will be charged for the cost of doing this.

What does the Deferred Payment Agreement cover?

The Deferred Payment Agreement covers your responsibilities and those of Council.

One of your responsibilities will be to make sure that your home is insured and maintained. If you incur expenses in maintaining your home while you are in residential or nursing care, these will be allowed for in the amount that you are assessed as contributing each week from your capital and income. This is known as your Disposable Income Allowance. The Disposable Income Allowance is a fixed amount of up to £144.00 per week and must be offered by us if a first legal charge can be secured on the property.

What are my responsibilities during the period that the Deferred Agreement is in place?

• have a responsible person willing and able to ensure that the necessary maintenance is carried out on the property to retain its value; you are liable for any such expenses
• insure your property at your expense
• provide information on an annual basis about the property and its status - this will be requested by us, and you will be required to provide proof of the above insurance being in place; and
• pay any assessed weekly charge in a timely and regular manner; if you fail to pay your assessed charge, we reserve the right to commence recovery processes as set out in our Debt Recovery Policy