How the council recovers costs

Your council can use a ‘repayment charge’ to recover repair costs. It is registered on the title deeds and means that an owner will have to pay off the debt (including interest and admin charges) when they sell their property. The presence of the Notice may also make it difficult to sell.

If flat owners or commercial property owners do not pay a repair bill, the council can, in many cases, register a repayment charge with the title deeds.

The council must first serve a notice on the owner, telling them it plans to do this to recover repair costs. The total cost can include the cost of serving the order and interest charges. The owner should be given the opportunity to make at least five annual payments. The order can be paid off early.

If an owner sells their flat before paying off the repayment charge, they will be forced to pay off the remainder of the repayment charge from the proceeds of the sale.

Legal reference

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