The Housing (Service Charge Loans) Regulations 1992 came into force on 17th August 1992. They state that, provided certain conditions are met, some leaseholders have the right to request a loan from the Housing Corporation towards the cost of service charges for major repairs.

The conditions which have to be met are set out below. Any RSL who issues a demand to pay service charges relating to major repairs must check this circular and, if it believes (having sought legal advice if necessary) that the leaseholder may be entitled to a mandatory loan from The Housing Corporation, it must inform the leaseholder of their rights and how to claim the loan.

The amounts in the following text relate to the period 1 April 2006 to 31 March 2007.