What are Service Charges?
Service charges are costs that have been incurred by the Council when looking after the block that your flat is situated in. These include the routine maintenance , repair and cleaning of shared areas and structural parts of the block and the grounds. From time to time we have to do major works of repair and improvements. Your share of the total cost will be in your service charge.
The Council under the terms of the lease are obliged to provide the Building insurance cover for the flat. The Council also has pass on the costs of administering the service.
The Service Charge will include one or more of the costs detailed below. This list is not exhaustive and does not include items of major works and improvements that might be rechargeable over and above any annual service charge account.
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DISTRICT/COMMUNAL HEATING - where district/communal heating is supplied to properties a charge is levied for the provision of heating and hot water to individual flats and communal areas. Charges are also levied for the servicing, repairs and replacement of equipment
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FIRE PREVENTION EQUIPMENT - the Council provides fire-fighting equipment for communal areas of some multi-occupied properties. Charges are levied for the supply, servicing, repair and replacement of the equipment.
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WINDOW CLEANING - in some blocks a private contractor is employed by the Council to clean areas of communal glazing to windows and doors.
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LIFTS - in blocks where lifts are provided, charges are levied for the electricity and the servicing, repair and replacement of the lifts.
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INTERNAL LIGHTING - relates to the consumption of electricity in blocks where communal lighting is provided to stairwells, entrance halls and landings, and where there is external security lighting.
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CLEANING - in certain blocks the Council provides a cleaning service to the communal areas of the block.
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COMMUNAL TV AERIAL - the Council provides a communal TV aerial facility to a number of blocks throughout the city. Where the service is provided costs can be incurred for the supply, service, repair and replacement of the equipment.
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WATER SUPPLY BOOSTER - this charge relates to the electricity consumption of the water supply booster which increases the water pressure to some multi-storey blocks. Charges are also levied for the supply, servicing, repairs and replacement of the equipment.
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CARETAKING - a caretaker is employed in some blocks to deal with the day-to-day management of the block. The recharge relates to the employment costs and related running costs of the block.
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STEEPLEJACK INSPECTIONS - it is necessary for steeplejacks to inspect the structure of high rise buildings regularly.
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RESIDENT HOUSING OFFICER - Resident Housing Officers are employed in certain blocks of flats and are responsible for duties associated with the management of the block.
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HORTICULTURAL MAINTENANCE - garden areas surrounding certain blocks of flats are covered by a horticultural maintenance contract. Where a contract exists charges will be raised for this service.
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GAS SAFETY CHECKS - the Council, as Landlord, is required to carry out annual safety checks to gas flues in leasehold properties. The Council is only responsible for checking the flue if it forms part of the structure. It is not responsible for checking items such as boilers, fires and cookers. If a leaseholder employs a contractor to maintain their own equipment and the contract includes a safety check to the flue, the Council is not required to undertake a further check. However, you as a leaseholder must provide evidence of the contract to the Council in order to comply with legislative requirements.
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BUILDING INSURANCE & INSURANCE PREMIUM TAX - under the terms of the lease the Council is obliged to provide the Building Insurance cover for the flat. The charge levied includes the annual premium and Insurance Premium Tax payable in respect of the individual flat.
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PAINTING - the Council retains responsibility for the painting of external areas and any internal communal areas. This is carried out as required and is determined by the Council or its agents. Where a property is identified as being part of a painting programme, leaseholders will be notified of the intention to paint their property together with estimated costs. If a leaseholder does not wish to have their windows and doors included within the programme they must notify the Council in writing. However, the Council is still responsible for painting any communal areas of the block. Each leaseholder will be required to pay a proportion of the cost for external/internal communal areas, e.g. gutters, fascia boards, foyers, stairwells and landings.
If any repairs are carried out to the flat or the communal areas prior to painting, in order to fulfil the painting contract specification, a proportion of the cost will be recharged to leaseholders.
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MANAGEMENT FEE - the Council is obliged to recover all costs involved in managing leasehold properties. The management fee is reviewed annually and includes such items as supervision and administration of all services, maintenance of appropriate records and computer systems, responding to leaseholder enquiries, production of Service Charge and Ground Rent notifications, billing and debt recovery.
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COMMUNAL REPAIRS - are costs incurred by the Council in carrying out any repair or maintenance work to a specific flat, to the communal areas in a block. A proportion of repairs undertaken to the roof, foundations, guttering, internal communal areas, the external structure or access paths of all flats will be rechargeable to leaseholders. More specifically, items such as lift maintenance and controlled entry systems are proportionately rechargeable where these services are in place. In general the Service Charges are divided equally by the number of flats within a block of flats. (eg A total recharge of £200 for a block of 4 flats will result in a charge of £50 for each flat). There may be exceptions to this.
You, as a leaseholder, will benefit from some or all of these services and from works of maintenance, repair and improvement undertaken by the Council in respect of the block and grounds, and the shared areas and structural parts.
The Lease provides that the Council will recharge you for a proportion of all maintenance and management expenditures. Where costs relate specifically to your flat, the cost will be recharged to you in full.
The amount of Service Charge is not fixed. It will vary from year to year, depending upon on a number of factors including:
- variations in the nature and extent of the services the Council provides to the block
- variations in the repair and maintenance requirements for the flat/block
- improvement works which have been carried out
- increases due to the effects of inflation