Appendix J: Charges for Deferred Payment Agreements and Interim Funding Arrangements 2021-2022

Always seek independent financial advice before entering into a Deferred Payment Agreement or Interim Funding arrangement with the Council. See our ‘Deferred Payment Agreements’ leaflet for further information.

Set up fees for Deferred Payment Agreements (DPAs):

ServiceFees
Legal costs for a DPA secured by a first legal charge against freehold property in sole ownership of applicant, with no loans secured and no legal complications. £400 (+ VAT if applicable)
Variable legal costs to cover the cost of any additional work (if applicable) to secure a charge against a property or to obtain a solicitor’s undertaking. If this applies, we will provide an estimate in advance.£110 per hour (+VAT if applicable)
Other administrative costs£154.80 (+VAT if applicable)
Land Registry – registration services fees – refer to Land Registry Scale 2 fees on Land Registry websiteAt cost
Formal property valuation – where commissioned by the council – we will provide a quote in advanceAt cost (+VAT if applicable)
Specialist legal and/or financial advice commissioned by the council (if required) – we will provide an estimate in advance.At cost (+VAT if applicable)

Value Added Tax (VAT) is not included in the fees above. It will be charged on fees and charges where applicable.

Deferred Payment Agreements which meet the national mandatory DPA requirements to be secured by a first legal charge are not subject to VAT.

Annual administration fees for Deferred Payment Agreements (DPAs) and Interim Funding Arrangements

ServiceFee
Administration charge£247.80 (+VAT if applicable)
Property valuation fee (for an ongoing DPA or Interim Funding Arrangement)Quote provided in advance

DPAs which meet the national mandatory DPA requirements to be secured by a first legal charge are not subject to VAT.

Annual interest rates for Deferred Payments and Interim Funding

1 April 2021 – 30 June 2021: 0.45% (yearly rate) charged daily

1 July 2021 – 31 December 2021: 0.75% (yearly rate) charged daily

1 January 2022 – 31 March 2022: to be advised (yearly rate) charged daily

Please note: we charge the maximum interest rate as defined in the Care and Support Regulations. Interest is charged daily on the deferred balance (including any deferred administration costs) and is compounded.

Interest charges are added to the deferred payment debt.