The breakdown of your service charge outlines the cost of the services you receive, usually for the maintenance of the communal areas on your estate or blocks of flats. Not everyone will pay a service charge as not everyone receives these services.
Your service charge may pay for items such as:
The way in which your service charge is set is dependent on your lease.
We calculate your service charge by looking at how much services have cost the previous year and estimating the costs over the coming year. For example, if water for the communal area cost £100 the previous year and we are advised of a 5% increase this year, we would charge £105 for this year.
Having a variable service charge means that if we estimate your service charge incorrectly we will correct this in the following year’s service charge. For example, if we estimated it would cost £220 to cut the grassed area at your scheme and it only cost us £200, the £20 overcharged would be credited to your service charge account.
The same would apply where we have undercharged for a service in any particular year.
We will write to you in September if you have a variable service charge to advise you of the actual costs of services you have received.
This is to cover the cost of your Caretaker or Scheme Manager.
This covers all communal tree pruning and felling.
This charge covers the cost of removing any fly tipped items or one off cleaning. The council are not responsible for clearing any items fly tipped in areas where the land has been adopted by us.
This charge does not cover the cleaning of wheelie bins.
We calculate this cost for your block and then apportion it between all the properties in your block. This charge is for repair works carried out to your block and not to your individual property.
These are incidental costs for things such as rock salt which may have been purchased for use on your estate. Accounts will be amended accordingly on your next service charge statement if it is not used, but only if you pay a variable service charge (tenancy agreement signed).
This is an amount paid regularly by the leaseholder to pay for any works which may need to take place in the future.
No, these funds will remain in the fund for the benefit of the scheme.
This is a charge for a service which relates directly to you as an individual resident i.e. water charges. This is not a communal charge.
One is 7% and is added to charges from Management Agents. These are marked ‘Management Charge Fee’on the statement.
The other is 15%.
This is charged to all rental customers at the standard 15% rate. The fee covers the administration costs of the services we provide.
This is quite common. An example would be where the electric bill for one block differs to another. If your service charges are ‘variable’ then each block will pay for exactly what they have consumed.
If you have overpaid, the difference will be credited to your service charge account and then either:
If you have underpaid, the difference will be charged to your service charge account and you will be required to pay the shortfall. Please contact your Income Services Officer to discuss how this can be paid.
You must contact us immediately on 0300 500 6262 and we will be able to advise and assist you.