Appendix J: Charges for Deferred Payment Agreements and Interim Funding Arrangements
2024-2025
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):
Service | Fees |
---|---|
Legal services initial flat fee for the first 5 hours | £567 (+ 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. [1] RBC Legal Services hourly charge rates can be viewed at page 18 of: Appendix 9 – Fees and Charges Proposals from April 2024 | Hourly fee based on pay rate [1] (per hour) |
Other administrative costs | £176.10 (+VAT if applicable) |
Land Registry – registration services fees – refer to Land Registry Scale 2 fees on Land Registry website | At cost |
Formal property valuation – where commissioned by the council – we will provide a quote in advance | At 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
Service | Fee |
---|---|
Administration charge | £281.90 (+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 2024 – 30 June 2024: 4.65% (yearly rate) charged daily
1 July 2024 – 31 December 2024: 4.05% (yearly rate) charged daily
1 January 2025 – 31 March 2025: 4.25% (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.
For further information about how the maximum interest rate is calculated see paragraph 9.71 of the Care and Support Statutory Guidance.