Service Charges
One of the key aspects of being a Leaseholder is that you will be required to pay a service charge. This is a sum of money collected monthly which covers your share of the cost of maintaining the communal area of the development and administering the contracts, buildings insurance and major work.
Learn more about service charges below:
When are service charges reviewed?
You will pay your service charge to us by direct debit.
Your service charge is reviewed on 01 April each year based on the expenditure of the previous year.
Audited accounts for each financial year are prepared and issued in September. We will tell you the new service charge amount by mid-March each year.
Got a question about service charges? Speak to a member of our dedicated team who can help with your query.
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What does the service charge cover?
Service charges can cover any of the following;
- Cost of repairing and replacing communal lighting.
- Cost of general repairs to communal areas.
- Cleaning communal areas (typically once a week).
- Maintenance and repair of communal door entry systems.
- Gardening and grounds maintenance.
- Lift maintenance, servicing and repair including the emergency telephone.
- Management charges and audit fees.
- Buildings insurance.
- Reserve fund for cyclical decorations and/or major works.
Got a question about service charges? Get in touch with our dedicated team who can help with your query.
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What's included in the service charge?
Reserve fund
This is money held in an interest-gathering bank account and is put aside to contribute towards the cost of any cyclical decorations or major works to the block or estate. The aim is to avoid the need to send large bills to leaseholders for these works. However, any shortfall will be recharged to Leaseholders in accordance with the terms of the lease.
Management charge
This covers the cost of running our leasehold management services. This includes the following:
- Administering and collecting rent and service charges.
- New build defect reporting.
- Property management - management of shared areas including cleaning and gardening contracts.
- Anti-social behaviour support.
Insurance
Because we own the freehold of your home, we need to make sure it is adequately insured. We have a block buildings insurance policy which covers all our properties. As we require insurance on so many properties the premium payable is reduced and we can pass these savings on to you.
Please note: We do not insure the contents of your flat. You must arrange your own contents insurance cover.
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Staircasing
The process of buying more shares for a Shared Ownership home is reffered to as staircasing. If you staircase to 100% you will become an outright owner.
Selling your home
Selling your Shared Ownership home is a straightforward process and is known as a resale. You can sell your Shared Ownership home at any time.
Lease and lease extensions
When purchasing a property, you will sign a lease which states your rights and responsibilities as a leaseholder. You can also request to extend your lease.