Lib Dems help leaseholders in recession

3.30.49pm BST (GMT +0100) Wed 27th May 2009

Councillor Barbara Smith

Struggling leaseholders in Islington have been thrown a lifeline by Islington's Liberal Democrat council to reduce the financial pressure on them during the recession.

Last week's meeting of the council Executive agreed a new package of support:

• increasing the time leaseholders have to pay back major works bills without interest from two to three years. For leaseholders with bills over £10,000 the interest-free period will be extended to five years.

• giving all leaseholders who can't get a loan for their major works bill the choice of having a charge placed on their home so the payment can be delayed until the property is sold.

• offering leaseholders with major works bills an extended ten year payback period.

Barbara Smith, Islington's new Executive Member for Housing, said:

"Islington's Liberal Democrat council already offers leaseholders one of the most generous support packages in London. This is our third review of repayment options since February 2006 alone.

"But in light of the recession we felt it was only fair to look again now at how we can help leaseholders finding it difficult to make ends meet. Many of our leaseholders are struggling to get private loans at the moment so we are stepping in to help.

"This new help will be available to all leaseholders getting a new major works but also to leaseholders who are currently paying a major works bill if they want. The extension of interest-free periods will also help reduce leaseholders' monthly outgoings and we are cutting the minimum amount they're expected to pay.

"This help for leaseholder will mean that Islington is once again well ahead of the game in London."