Leaseholder service charge

If you have any problems with your property service or works, report them immediately, do not wait until the end of the year invoice.

Invoice payment due dates

You will receive three invoices per year, these are due:

• April - Ground rent and Insurance
• between June and July - Services charges including management fees 

You may also receive a Major works invoice, this will be issued any month one financial year after they are completed.

You must pay these charges in full within 28 days of receipt of the invoice. If you need to discuss a payment instalment plan, you must contact us within this period.

Invoices explained

Service charge invoice

Your annual service charge will vary each year as it is based on actual expenditure. The costs of carrying out repairs and other communal services are divided between leaseholder and tenant residents. To ensure these costs are divided fairly, they are calculated in the following ways:

Communal services 
The total cost of the service to the block is divided by the number of tenant and leaseholder homes for:

• energy and communal lighting
• horticultural service and grounds maintenance
• repairs and maintenance to the estate, complex or neighbourhood
• caretaking

Block services 
The total cost of the service to the block is divided by the number of ‘habitable rooms’, any room that is not a kitchen, bathroom, or WC. Dividing costs this way is considered fair, as some homes are larger than others. Block services include:

• lift maintenance
• entry phone maintenance
• repairs or maintenance to block
• communal heating (if applicable)

Block service charge example:
Repair cost to block £500
Number of habitable rooms in the block 25
Charge per habitable room £500 ÷ 25 = £20
Charge for 2 bedroom flat consisting of 3 habitable rooms , for example  2 bedrooms and  1 living room.  3 rooms × £20 = £60

Management and administration fees

Under the terms of your lease you will be required to pay this charge.

These costs include:

• staffing costs for the leasehold services team
• office rental, office running expenses 
• computer systems
• customer focus/contact center
• housing management costs
• legal expenses
• administration 

The cost is calculated each year based only on expenses that year, it is not fixed. Costs are divided fairly between leaseholders and freeholders, there is a standard fee for each type of residence. 

Ground rent

Ground rent is a fixed charge as written in your lease agreement and will not change from year to year.

Building Insurance premium 

The building insurance premium will vary from year to year depending on our negotiations with the building insurers over the premium for the financial year.  It is a requirement of your lease agreement to have building insurance only through us.