Housing Costs for interest on loans for major repairs

Can someone please advise - one of our leasehold schemes has had some major repairs done to the roof.
Leaseholders are being asked to pay a sum of £4000.
If they are already receiving Pension Credit can they be advised to obtain a loan to pay this amount and then claim for the interest on the loan to be included in the PCr assessment as a housing cost or would such a loan be precluded because it has been obtained whilst the PCr claim is ongoing?
Thanks in advance.

Hi Lyn,

If you take out a loan to pay for certain repairs and improvements you can get help with this with PC (and IS, income-based JSA and income -based ESA).

You must use the loan for the repairs and improvements within six months (or longer if reasonable).

In addition, you can only get help with loans for certain specified repairs and improvements to maintain the fitness of your home for human habituation.

This includes damp proofing.

Although not specifically covered it may be possible to argue that this includes certain repairs to a roof.

In CIS/2132/1998 the Commissioner held that -

“As regards [roof repairs], a roof obviously prevents water entering a building and, thereby, prevents damp occurring. A roof fulfils a number of functions. It keeps out the elements. It provides security. It is an important part of the structure of the building. It is an element in the architectural and aesthetic appearance of the building. It is appropriate to describe a repair or improvement as a damp proof measure if that is its sole or predominant purpose. It is not appropriate to describe a repair or improvement in this way if that is merely one part of its function. So, a repair to a roof may, depending on its nature, be a damp proofing measure. However, the renewal of a roof does not fall within [roof repairs].”

See - http://www.administrativeappeals.tribunals.gov.uk/aspx/view.aspx?id=1468

The usual restrictions on help for loans taken out while on the above benefits do not apply to loans for repairs and improvements.

See pages 136-137 of the Disability Rights Handbook 2010/2011 and pages 829-830 CPAG Handbook 2010/2011.