How do you calculate my service charge?
If you pay a service charge for your home, we will send you an estimated service charge every year, usually in February. This is our forecast of how much we think it will cost us to provide the services during the next year. You will have to pay this estimated service charge as stated in your lease. The terms of your lease set out your share of the costs.
These payments are known as ‘variable service charges’, as the amount you have to pay varies if the cost of providing the services changes within the year, or is different to our original estimate.
Usually you will be required to pay your service charge in 12 equal payments on the first day of each month. Some leases state the service charge is payable quarterly or annually in advance, but if you would like to pay monthly this can be arranged by setting up a standing order or Direct Debit.
At the end of each financial year we calculate how much it has actually cost us to provide the services to your estate. We then compare this figure to our estimate and make any adjustments, taking into account if our estimate was more or less than the actual costs. We will send you an Income & Expenditure account to explain the actual costs.
If the estimate was lower than the actual costs, we will add the balancing charge to your customer account and you will need to make payment of any outstanding balance. If the estimate was higher than the actual cost, we will usually credit your customer account with the difference.
To help keep our overall management costs as low as possible, we charge an administration fee to any leaseholders who regularly miss payments. This amount covers our costs in dealing with enquiries about late fees, and varies depending on how much we have to get involved.
View your statement and balance using My Account