4. Disabled Facilities Grant - Repayment Conditions
Disabled Facilities Grant (DFG) - Repayment Condition
If you are
in receipt of a Disabled Facilities Grant (DFG) over £5,000 and
own your property
- a condition of the grant will require repayment of a proportion of the grant in certain circumstances.
- In these cases, the Council will register a Local Land Charge against your property for the repayment.
What is a Local Land Charge?
A Local Land Charges register is maintained by every local authority in England and Wales. It records details of all entries registered against a property within the Borough that fall within the definition of a Local Land Charge. These charges may be used to place a financial charge against a property.
If you wish to sell your house, the purchaser's solicitor will contact the Council to do a search of the Local Land Register which will reveal any existing charges against the property.
Why is the Council doing this?
DFGs are publicly funded and there is high demand for assistance with aids and adaptations. This mechanism provides a means of recirculating limited public funds back into use for other disabled residents.
How much can the Council register as a Local Land Charge?
If your grant exceeds £5,000 then the Council will register a Local Land Charge for the amount above this, up to a maximum of £10,000. For example:
|Amount of Grant||Amount of Local Charge|
|Up to £5,000||No charge registered|
|£15,000 and above||£10,000|
How long will the Local Land Charge remain on my property?
The Local Land Charge will remain on the register for ten years after the grant work has been completed and the grant paid.
What happens if I want to sell my home?
If you move home within the ten year mandatory grant condition period then you will be required to pay the amount of the Land Charge. Discretionary grants have no time limit so you will be required to pay the amount of the Land Charge.
Under certain circumstances, the Council may decide not to recover the debt and this decision will be made on a case by case basis, depending on the circumstances of the applicant.
What if I live in rented accommodation?
A Local Land Charge will not be registered on properties that are rented from a private landlord or a Housing Association and this grant condition will therefore not apply.