Leaseholder recharges are changing – here’s what you need to know
The way we recharge leaseholders for major works is changing from 21 September 2026.
If you’re a leaseholder, your lease will include a clause or clauses about repaying your fair share of the cost of repair and improvement works to the block that you own a property in. It might be referred to in your lease as ‘paying contributions to landlord’s costs.’ Most leases have clauses for both repairs and improvements, but some pre-1990 leases only cover repairs.
When we do repair or improvement works that cost more than £250 per flat, we must by law talk to you about the type and cost of works, and about which contractors will be used. This is because we own the building that your flat is in, and as your landlord we have obligations in the lease agreement to keep the block, communal areas, and services we provide maintained and in good repair. Leaseholders are required to pay a fair share to the costs we incur, it is important that costs are shared equally and are not subsidised by tenants’ rent money.
We ask for full payment within either 21 or 30 days of invoice. The amount of recharge is capped at £10,000 for works funded by the government, but if they’re funded by the council or another agency, there is no upper limit to what can be recharged. The law allows you to make hardship representations to have charges reduced or waived or apply to government for a loan depending on how much the total charges are. Our local approach offers more flexibility and more payment options and this is where we’re planning changes.
The difference the changes will make
Current approach - We cap recharges for works funded by the council or other agencies, at £10,000 plus increases related to the Consumer Price Index (CPI), which is about £13,500 as of June 2026. We also offer the following payment options to leaseholders.
New approach (from 21 September 2026) - All the payment options detailed above will remain available, but the cap on works paid for by the council or other agency will be removed, meaning if your recharge is more than £13,500 you’ll pay the full amount - more than you would have before. Any leaseholders who have been consulted on major works under the current approach (which includes a cap on the amount of recharge) but have not been invoiced yet will not see a change in their recharge amount.
