The Rates Deferment Scheme was introduced in Northern Ireland on 1 April 2010 for pensioners aged 60 or over who own and live in their own home.

This is a payment choice for pensioners who want to postpone paying their rates. Pensioners who are eligible can postpone paying their rates until their death, until their house is sold or transferred or until the agreement with Land & Property Services is broken.

If you defer payment of your rates bills, the postponed rate amount is a debt secured against your house. Interest is also due on this debt. The debt and interest will be payable when you die, if you transfer or sell your house, or break the deferment agreement.

You can apply to defer rates if you are 60 or over on 1 April 2010 and you:

• own your own home and occupy it as your only or main residence;
• have at least 40 per cent equity in your home, (this means that 40% of your house’s value is free from a mortgage, debt or charge);
• have a capital value on your property of £50,000 or more, (this means the market value of the house if you put the house up for sale).

If more than one person owns your home, all owners must apply and meet the scheme's requirements.

There are two stages in the application process for rate deferment. When you make your initial application, Land & Property Services will estimate the amount you will defer in rates and interest on the debt during a period of up to thirty years.

If you decide against deferment, you can cease the application at this early stage with no costs to pay for this stage of the application.

If you want to defer payment of your rates, Land & Property Services will need information about anyone else who lives in or jointly owns your house and if there are loans or mortgages against the house.

If you go ahead with deferring payment of your rates, you will sign a legally binding agreement with Land & Property Services.

There are costs involved in arranging the agreement between you and Land & Property Services.

You will need a solicitor to confirm you own your house. You will also pay other professional fees and charges to set up the agreement with Land & Property Services.

If you require more information about the rates deferment scheme, contact Land & Property Services or download the guide to rates deferment.