Service Charges

Service charges

A service charge is a payment that you make towards the costs of providing and maintaining services to your home. Service charges are divided equally between all of the properties in the scheme. The service charge will vary depending on where you live.

• Handy person
• Gas safety checks and servicing
• Day to day repairs and emergency repairs
• Cleaning of communal areas
• Window cleaning in communal areas
• Maintenance of communal gardens
• Electricity supply to communal lighting
• Smoke detectors
• Buildings insurance
• Maintenance of lifts
• Maintenance of door entry systems
• Maintenance of warden call alarm systems
• Management and administration.

Each year the Association estimates how much it will cost to provide these services. The estimates are based on actual cost, inflation and prices from contractors. The estimated annual service charge is charged to all leaseholders on a quarterly basis as set out in the terms of your lease. It is due quarterly in advance but can be paid by monthly standing order.

An estimate of the service charge for the following financial year is sent to each leaseholder in February/March every year. Our Housing Manager, Julie Clark, will arrange a leaseholder meeting to discuss the budget and service charges. You will be given at least two weeks notice of the meeting and should receive the papers at least 7 days in advance of the meeting.

You will be asked for your comments on the estimated charges. The estimate is itemised in accordance with the provisions of Schedule 1 of your lease:-

• Central warden call service – this includes the charge made by the local authority for monitoring the alarm system. Not all of our LSE schemes have this service
• Maintenance costs – this is an estimated cost of repairs and replacements which are the Association’s responsibility under the lease. The re-painting of the exterior and the internal communal areas is usually carried out every four years. The estimated maintenance costs also include the cost of contracts for the maintenance of garden areas, the gas servicing and the testing of fire detection/fire fighting equipment.
• Communal areas – this is the estimated cost of lighting and cleaning any communal areas. It includes the replacement of light bulbs, cleaning materials, payment of cleaners and window cleaners.
• Insurance – this is the cost of insuring the structure of the building and any items in the communal areas. It’s important to note that it doesn’t cover the fixtures and fittings of your home or your personal possessions. You should arrange adequate insurance for these items.
• Management – a charge is made to cover the costs incurred in the general management of the scheme, for example, arranging repairs, collecting service charges and attending meetings with leaseholders. This charge also includes the auditor’s fees that are incurred when the scheme’s accounts are audited annually. The management charge is within the level of charge permitted by the Tenant Services Authority (the Association’s regulator). Please note that we charge a management fee to cover our costs, not to make a profit.