Leaseholder charges

What is the service charge?

A service charge is a sum of money which covers your share of the cost of maintaining the common parts of the building and any external areas such as gardens, car park areas within the boundary of your estate.

What do the different service charge headings mean?

Below is a list of items which are commonly found in service charge budgets. Every service charge budget is different, so your particular development’s budget may not include all of the items below, but it may also include some items which are not listed below.

Building Insurance

The insuring of the structure of the block. Please be aware that you do not need to take out your own building insurance.

Building insurance is separate from contents insurance, which is not included in the policy we provide. You will have to arrange your own contents insurance.

Caretaking and Cleaning

Block caretaking and cleaning is typically done on a weekly basis, although the regularity of this will vary from block to block.

Controlled entry system

The maintenance of any intercom or door entry systems. If the intercom handset in your flat is faulty, this will be repaired as a repair, as the handset is part of a communal system. Note - This does not include replacement fobs or communal keys. These are charged for separately.

CCTV

The maintenance & repair of any CCTV covering the communal areas.

Lifts Service The maintenance and repairing of any lifts in the block including any emergency call button and lift telephone lines.

Fire Detection Maintenance Equipment

The maintenance and upkeep of any fire alarms, air opening vents, dry risers, and related fire safety detection equipment in the block.

Communal Lighting

The cost of electricity for the communal lighting. This also includes energy costs for powering lifts, or door entry systems.

Window Cleaning

The periodic cleaning of communal windows in the block. This does not include individual windows in a property.

Management Fee

This covers the financial and administrative running costs of providing our services.

Water Tank Maintenance and Inspection

Sometimes blocks have water tanks. These require servicing and statutory legionella testing.

Water Boosting Equipment Some block have water boosters to maintain an adequate level of water pressure in the building. Where fitted, these require annual maintenance.

Lightning Protection Equipment

Some blocks are fitted with lightning protection systems, which ground any lightning strike into the ground below the development. This cost is for the maintenance and repairs of these systems.

Block Repairs

This is general repairs to the communal areas of the block.

How do you bill me the service charge?

The service charge account year starts on 1 April and ends on the 31 March each year. The service charge is estimated each year and in February we send out the Estimate for the upcoming account year.

Charges must be paid quarterly in advance each year as follows:

• 1 April for the period 1 April to 30 June
• 1 July for the period 1 July to 30 September
• 1 October for the period 1 October to 31 December
• 1 January for the period 1 January to 31 March

Once the service charge year ends (on the 31 March) we will audit the accounts and issue a Service Charge Actual Certificate, and this is called the reconciliation period.

We will send you the Service Charge Actual Certificate by 30 September each year. This could result in either a credit or debit being applied to your service charge account. You will never be asked to pay more than the cost of providing the service.

The process is shown in the diagram below:

How do I pay?

Service charges are payable quarterly as follows:

• 1 April for the period 1 April to 30 June
• 1 July for the period 1 July to 30 September
• 1 October for the period 1 October to 31 December
• 1 January for the period 1 January to 31 March

We prefer to take payment via a direct debit and this can be set up on a monthly basis.

You can set up a direct debit by contacting our Incomes Team on 01865 249811.

How do you work out how much to estimate?

Estimates are calculated by several methods such as looking at previous year’s costs or known contract costs.

How do you work out my share of the total cost?

The total cost is divided by the number of properties within your block or estate to give you your contribution.

When are the Actual Service Charges issued?

In September each year, you will receive a Service Charge Actual Certificate based on the audited accounts which is the actual cost of providing all services for the previous service charge period.

What happens if you have over or underestimated the service charges?

If your estimated service charge was less than the actual costs this will show as a debit in your service charge actual certificate and will be invoiced to you. This is payable within 28 days of receipt of your final accounts.

If your estimated service charge was higher than the actual costs this will show as a credit in your service charge actual certificate and will be applied to your service charge.