Service charges include such things as:
- Electricity for communal lighting
- Grounds Maintenance for grass cutting
- Repairs to footpaths, drying areas, fences and boundaries
- Cleaning or window cleaning, where provided
- Any repairs and maintenance or improvement works
- Insurance (see below)
- Administration – the costs involved in amending a lease or providing information to a Solicitor when a leaseholder sells a flat can be recharged
- Annual Management Fee.
How are Service Charges Calculated?
Service Charges are calculated by dividing the total costs of the work which was carried out to the block by the number of flats in the block. If a roof repair cost £400 and there are four flats in the block, each leaseholder would be charged £100. It does not matter where on the roof the leak occurs, you are still responsible for paying a proportionate amount of the cost. On the other hand, if the leak occurred directly over your flat and was affecting only your flat, you would still only be charged a quarter of the cost.
Paying your Service Charges
You are required to pay your bills within 14 days of receipt and the Council can take legal action if you don’t. For some major or very expensive works, the Council may provide a loan to help pay the costs, you would be advised if this was possible on your invoice. Alternatively, you may wish to approach your bank or building society.
If you are having difficulties paying your invoice, you should contact the Council’s Accounts Receivable Section as soon as possible as they may be able to arrange for you to pay in instalments.
There are several ways you can pay your Service Charges which are listed on the back of your invoice or you can pay quickly and simply online.
Insurance
You must have buildings insurance in place to meet the costs if, for example, the block of flats caught fire. You have the option of finding your own insurance or paying the Council an insurance charge to cover this. We will ask you to provide a copy of your Certificate of Insurance if you choose to arrange your own and may charge you a fee if you do not.
You may also wish to take out contents insurance to insure your personal belongings and furniture.
