Your service charge
Your annual service charge bill pays for the services to your building and/or estate. The general terms of the lease sets out what we can (and cannot) charge for, and how your share of the charge is worked out.
The cost of building insurance (for the shared areas, structure and outside only) is also included in your service charge bill.
Service charge estimate
Each April, you will receive a service charge bill for the coming financial year (1 April to 31 March), this is based on the amount we estimate will be spent. The bill breaks down how much you pay for each service, giving both your share of the cost and the total cost for your building and estate.
When preparing the service charge bills, we look at the amount we spent in previous years and the budget for the service in the coming year. We try to make your service charge bill as accurate as possible to lessen the difference that will be included in the next year’s bill.
The cost of day-to-day repairs is the most difficult charge to estimate and often the cause of large costs at the end of the year. Under the terms of your lease, service charges are due for payment within 21 days of you receiving the invoice.
Actual service charge
By October each year you will receive a statement of the actual costs. This tells you the actual amount spent on each service. We will work out the difference between the amount we charged you at the beginning of the year and the amount that we actually spent during the year. We then include this difference in April’s service charge bill so you only pay the amount it has cost to provide the services.