getting a loan

If you cannot arrange finance from a lender and have a low income, you may be entitled to a loan from Homes for Haringey. However, Government regulations require us to charge a relatively high interest rate for a loan, so this should not be your first choice.

You will also have to pay the administration costs of providing the loan. The current charges for loans are as follows:

For detailed information on loans for major works bill you can download the 'Bills for major works – a guide for leaseholders 2006' booklet.

Mandatory loan

We must offer a loan to leaseholders for the first 10 years of the lease. The loan is secured on the property, like a mortgage.

You can only get a loan for the major works part of your service charge and you have to pay the first £2,140 of your total service charge for the year yourself.  This means you can only get a loan for the major works part of your service charge that is above the first £2,140. The minimum loan available is £720 and the maximum is £28,530.

These figures were correct at September 2006.

For detailed information please see the section on Mandatory Loans in the 'Bills for major works – a guide for leaseholders 2006' booklet.

Discretionary loan

If you do not meet the statutory requirements for a mandatory loan, Homes for Haringey may be willing to give you a minimum loan of £500 at our discretion.  This will be means tested. You will have to provide evidence that you cannot to pay by any other means. We will also need proof that you are up-to-date on your mortgage repayments (if applicable) and that there is sufficient equity in your property to cover the amount we have billed you for.  

For detailed information please see the section on Discretionary Loans in the 'Bills for major works – a guide for leaseholders 2006' booklet.