3. Annual service charge
Under the terms of your lease, you are required to pay a service charge each year. This contributes towards the cost of services, maintenance and management of the building and any communal areas.
The amount you pay will vary depending on where you live and which services are provided to your home or block.
How service charges are set and billed
Each year, we follow a set process to calculate and collect service charges:
- February – you will receive details of the estimated service charge for the coming financial year
- Quarterly bills – service charge bills are issued on:
- 25 March
- 24 June
- 29 September
- 25 December
- September – you will receive a statement of account showing the actual costs from the previous year
If the actual costs are lower than the amount you paid, your service charge will be reduced in the following year.
If the actual costs are higher, your service charge will increase to reflect this.
Challenging service charges
You have the right to challenge:
- the reasonableness of a service charge, or
- the standard of works or services provided
Further information on how to do this can be found in your lease.
What your service charge may include
The services listed below may appear on your service charge statement. You will only be charged for services that are provided to your home or block.
Service charge descriptions
Ground rent
Ground rent is the rent paid by you, as the leaseholder, to us as the freeholder for the use of the land on which your flat or maisonette is built.
Your ground rent is fixed at £10 per year and is billed on 1 April for the 12 months ahead.
Block insurance
We are responsible for insuring the structure of the building, including the walls, roof and foundations.
This does not cover your personal belongings or the internal fixtures of your home. You must arrange your own contents insurance. We can offer an internal insurance policy, with the premium paid alongside your service charge.
Grass cutting
This covers maintaining communal green spaces on your estate, including grass cutting, care of shrubs, hedges and trees, and keeping paved areas clear of weeds.
Communal electricity
This pays for electricity used in shared areas, such as lighting in hallways, power for communal TV aerial boosters, and operation of door entry systems.
General repairs
Day-to-day repairs to communal parts of the building and estate, including the door entry system.
Each individual repair under this heading costs less than £250 per leaseholder. We will notify you in advance of any works that are expected to exceed this amount.
Door entry maintenance
The cost of an annual service contract for the door entry system, carried out by a specialist contractor. Routine repairs are included under general repairs.
Management fee
This covers the cost of managing leasehold properties, including:
- communication and advice for leaseholders
- managing contracts with external service providers
- calculating and collecting service charges
Communal cleaning
The cost of cleaning communal internal and external areas of your block, usually carried out every two weeks.
Future maintenance fund
Also known as a reserve fund, this is money collected over time to help pay for planned or cyclical works, such as redecorating internal communal areas.