Service charge arrears
Advice if you're a council homeowner (or leaseholder) who has received a final reminder letter, after being in arrears for the service charge.
Help and advice
If you are finding it difficult to pay, we can discuss your options and ways we can help you. You’ll find the name and telephone number of the officer who is dealing with your account on your final reminder letter, or you can email HomeOwnership@islington.gov.uk.
You can also find useful help and advice in the Money advice section of our website. You may also wish to seek independent legal advice.
Receiving a final reminder letter
If you have received a final reminder letter, you must pay the arrears in full or contact us to agree a reasonable payment plan within the time frame stated in the letter. Otherwise we will:
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take legal action by making a claim against you in the county court for the money that you owe us.
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contact your lender (if you have one and you are a leaseholder). They may pay the arrears for you and add them to your mortgage but they may also charge you a fee for this and they might also take legal action against you.
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take action to repossess your parking space or garage if you rent one from the council.
Arrears recovery fee
Most leaseholders pay their service charges promptly. The council incurs extra administration costs in recovering arrears (sending multiple reminder letters, making telephone calls and so on) from leaseholders who pay their service charges late, and so these leaseholders are charged a arrears recovery fee at the final reminder stage.
How to pay your service charge
You can pay your service charge online. Or, check your reminder letter for details on how you can pay your charges
Receiving a claim form from the court
What to do
If you receive a claim form from the court, and you agree that you owe the money, you should pay the cost of the claim (the arrears interest, court fees and solicitors’ costs) in full so that a County Court judgment is not registered against you.
If you can’t pay in full, contact Home Ownership immediately to discuss a formal arrangement to pay by instalments.
Don’t ignore the claim form. If you do nothing, we will ask the court to enter judgment against you without further notice and you will have to pay a judgment fee and further interest.
The court costs and solicitors’ costs vary depending on the amount of the arrears.
If you don't agree that you owe the money
You can defend the case. Follow the instructions in the pack that the court sends you with the claim and make sure that you reply within the 14 days that the court gives you. There will then be a hearing in the court or your case (if you are a leaseholder) may be referred to the First Tier Tribunal. The First Tier Tribunal is responsible for deciding whether a leasehold service charge is fair and reasonable and whether you should pay it.
County court judgements
Find out what to do if a county court judgment has been made against you.