« Previous | Contents | Next »
Listen
Repayment Charges
122. Repayment charges are a modernised version of charging orders. The Act allows a local authority to use repayment charges where it is entitled to recover certain expenses and payments, including interest and administrative expenses. The local authority will be able to register a repayment charge in the property registers in respect of the relevant living accommodation or, in the case of a demolished house, of its site. The repayable amount will be payable in 30 equal annual instalments, unless it is redeemed early.
123. A local authority will still be able to make a charging order in relation to section 131 of the 1987 Act, ie where it has incurred expenses under section 123 in the demolition of a building.
Scottish Executive approach
124. Implementation of this aspect of the Act will be taken forward by a team in Communities Scotland.
125. The bringing into force of sections 172 to 174 will make repayment charges available. Ministers have power by order to specify the form of a repayment charge or discharge and to make further provision about repayment or early redemption.
126. Repayment charges are expected to be introduced along with the bringing into force of the relevant sections of the Act permitting recovery of expenses (sections 59(1) and (2) and paragraph 6(1) of schedule 5).
Local authority role
127. Local authorities will have to decide which cases are suitable for the use of repayment charges. As well as registering the repayment charge, they will also be responsible for registering its discharge in the appropriate land register.
Local authority preparation
128. Repayment charges are updated versions of charging orders, most of which they will replace; local authority staff will have experience of the use of the latter under powers in the Housing (Scotland) Act 1987.
« Previous | Contents | Next »