Your Service Charges

• How are Service Charges calculated?
• Information_about_your_Service_Charge
• Paying_Your_Service_Charge
• Problems_paying_your_invoices
• Failure_or_refusal_to_pay
• What if I don't agree with the charges?

Under the terms of your lease, you are required to contribute towards a service charge.  Your service charge is the money you pay towards the day to day running costs of your block of flats, as well as your share of any major repairs.  The charge represents your share of the expenses for the maintenance, repair, insurance and management of the building. 

The services are generally broken down into 5 areas:

• Estate Services (such as caretaking, window cleaning, grounds maintenance)
   
• Repairs and Maintenance (to the structure of the building and communal areas)
   
• Communal Heating Costs (including the costs of electricity and gas and repairing heating systems) 
   
• Buildings Insurance
   
• Maintenance Funds – see How are Service Charges calculated? 

In addition, the Trust levies a management charge based on the cost of providing the above services, currently 15%.

Ground rent is also payable and is set at £10 per year for all leases purchased under the Right to Buy or Right to Acquire scheme. 

How are Service Charges Calculated?

All management and maintenance expenses are allocated or apportioned to each individual block of flats.  Your share depends on the number of flats in the block.

Information about Your Service Charge

Every year you will receive 2 statements relating to your service charge:

In February you will receive a Statement of Estimated Expenditure for the year starting in April.  This is the best estimate of the likely costs we will incur in providing you with the relevant services.  This is based on our best estimates of costs taking into account current prices and any known changes e.g. in utility prices.  The statement will be accompanied by explanatory notes explaining what the charges are and why they have been set at the various levels.

This statement shows your annual service charge which may be paid either quarterly in 4 instalments of monthly in 12 instalments.  This amount is shown at the bottom of the statement.

As the statement is sent out in February, this gives you the opportunity to query any amounts in the budget before the start of the year.

In September you will receive a Statement of Actual Expenditure for the year ending the previous March showing what has actually been charged to your account.  This statement shows what we budgeted and what we have charged you to allow you to compare how we have performed against budget. 
This statement will also show you whether or not the payments you have made over the year were too much (in which case you are entitled to a refund) or too little (in which case we will be asking you pay the difference).

Paying Your Service Charge

Your statement of estimated expenditure shows the annual service charge and you may pay this in quarterly or monthly instalments either by direct debit, standing order or through the bank. There are a number of options available and these are outlined on the back of your invoice.

If you wish to pay by direct debit, please contact the Leasehold Service Department on 01932 235760, for a mandate or send an email to Leasehold Services.

Problems paying your invoices

If you are unable to pay your service charge invoice immediately, please contact the Leasehold Services department for assistance on 01932 235760.

The staff are there to provide guidance for you to repay the invoice and can offer you an option:

• to negotiate a realistic repayment agreement
• assistance in payment options 

We also have a free Welfare Benefits Advice Service who offer welfare benefit checks, advice, help with making claims, help with appeals. The Trust has been awarded the Community Legal Service quality mark in recognition of the excellent standards of information and advice being provided. If you wish to speak to one of our advisers, please contact 01932 235827 or refer to the Welfare Benefits Advice section

Please do not ignore any invoice as failure to act may result in final demands or being forwarded to the Trust’s solicitors for collection.

You are encouraged to contact the leasehold services department to eliminate the need for further recovery action being taken.

Failure/ refusal to pay

Your lease is a legally binding document and by signing your lease you have agreed to terms laid out in the document, which includes paying the landlord’s charges to maintain and manage your property and block. By refusing to pay you are in breach of the terms of your lease and we can go to court to seek judgement against you.

In extreme cases, the court may decide that you have seriously broken the terms of your lease and can grant possession of your flat; this is known as forfeiture of the lease. 

If we do go to court, you will incur legal costs increasing your financial problems. It is therefore very important that you work with us to sort out any problem before it escalates.

What if I don’t agree with the charges?

We will always attempt to calculate service charges fairly and accurately but if you think we have made a mistake or have charged you for works you feel have not been carried out or are of a sub standard quality, please let us know in writing and we will investigate your claim with the relevant departments and we will let you know the outcome, also in writing.

You also have the right to apply to an independent Leasehold Valuation Tribunal and both parties will abide by their decision. However, the tribunal can make a charge to hear your case.

For further information you can contact the Leasehold Valuation Tribunal (RPTS) direct, or you can contact LEASE – the Leasehold Advisory Service. LEASE is funded by the government to provide free legal advice to leaseholders and landlords on the law affecting residential leasehold and commonhold.

Their contact details are as follows:-

LEASE – Leasehold Advisory Service
Address: 31 Worship Street, London, EC2A 2DX
Telephone: 020 7374 5380 or local rate on 0845 345 1993
Fax: 020 7374 5373
www.lease-advice.org

Leasehold Valuation Tribunal
(Residential Property Tribunal Service)
Telephone: 0845 600 3178
www.rpts.gov.uk