Service charges
Service charges are what you, the leaseholder, pay towards the cost of managing, repairing, maintaining and improving the block in which your property is situated.
You can pay your service charge in one lump sum, or in equal instalments over 12 months.
- Cost of repairs and maintenance
- Calculating your service charge
- Service charges for Right to Buy owners
- Service charge repayments
- Major works repayment options
- Service charge debt
Cost of repairs and maintenance
In most instances, the costs of repairs are shared between the number of properties in your block. They will be calculated by dividing the total cost of the work by the number of properties in the block.
For example: if the total cost of repairing 4 properties in the block is £100, each leaseholder would pay £25.
Where we have carried out work to your own home, such as installing a fire safety door, you will be solely responsible to pay these costs.
Your service charge can include:
- administrative costs
- management costs
- care taking, concierge or estate warden services
- heating, lighting and cleaning of shared areas and stairways
- door entry systems
- day-to-day repairs
- structural repairs to building
- lift maintenance
- maintenance of shared gardens
- maintenance of boundary walls and fences
- limited buildings insurance
- external painting
Calculating your service charge
As part of your service charge, you will be billed for ongoing management charges, which all leaseholders are required to pay. The contribution and costs for these include, but are not limited to:
- leasehold management staffing costs
- number of repairs raised
- administrative cost of billing process
- block buildings insurance
- communal lighting and heating
- communal cleaning and grounds maintenance
Service charges for Right to Buy owners
If you bought your home through the Right to Buy scheme, you cannot be charged more than the estimate of service charges for the first 5 years (plus inflation) which we gave you when you bought your home.
These include:
- communal lighting charge - for homes which have communal area lighting
- garden charge - for homes with communal gardens - this charge is calculated by the total cost to the council of this work divided by the total number of properties (including tenants) who benefit from this service
- fire insurance charge - all leaseholders are required to pay this as part of the buildings insurance that we provide - this is calculated by the total cost to the council divided by the total number of properties (including tenants) to benefit from this service
- capital and planned works charges - these relate to individual homes and could include external painting - their cost depends on the level of work required
Service charge repayments
You can pay your service charge in a lump sum, or in equal instalments over 12 months.
If you're experiencing financial difficulties we may be able to offer you flexible repayment options.
Major works repayment options
Our flexible repayment options are designed to help leaseholders who may find it difficult to pay the costs of major works.
Our current repayment options are:
1. Payment in full
Pay your service charges in full within 28 days of the service charge demand being issued.
You can pay it by Direct Debit, standing order, monthly bank transfer or debit card.
2. 12-month Direct Debit plan
If you already have a Direct Debit, any service charge repayments will automatically be paid through it.
If you don’t pay by Direct Debit, contact the Leasehold Management Team to agree a repayment plan by Direct Debit.
3. Discretionary extended repayment plan
To qualify for a discretionary extended repayment plan you need to:
- have no other service charge arrears outstanding - unless these are already subject to an agreed repayment plan
- have major works charges of at least £1,000 and/or you are experiencing financial difficulties - this option requires us to carry out a financial assessment
- live in the leasehold property as your sole home - evidence of this may be required
If you think you qualify for this option contact the Leasehold Management Team.
Service charge debt
Full repayment of the service charge is required within 12 months of the invoice date.
Should the service charge remain unpaid after 12 months and there is no flexible repayment agreed with the council, additional administrative charges will be applied.
Also see
Leaseholder Management Team
Telephone: 01904 551550 (option 4, option 4)