Leaseholder charges and how to pay

Leaseholder charges cover the cost of managing, maintaining and insuring your home and shared areas.

There are 2 main types of charge: ground rent and service charge. This page explains what these charges cover, how they are billed and how to pay.

How to pay your leaseholder charges

We offer several ways to pay your ground rent and service charge.

You’ll need:

• your 10-digit customer account number which starts with 9
• your payment details

If you want to pay your service charge monthly, it is important that you contact us to let us know. If we have not recorded your instalment plan, you may receive reminder letters from us.

Pay by Direct Debit

Direct Debit is the easiest way to pay. Payments are made automatically by your bank or building society and you're fully protected by the Direct Debit Guarantee.

You can set up a Direct Debit over the phone - speak to customer services.

Pay online

You can pay your leaseholder charges by card using our secure online form.

Pay your leaseholder charges online

Other ways to pay

If you're unable to pay by Direct Debit or an online payment, there are other ways you can pay, including BACS, standing order or automated telephone payment.

See Ways to make a payment.

Ground rent

Ground rent is an annual charge paid by most leaseholders. It is fixed in your lease and covers the use of the land your home is built on.

We send your invoice for ground rent in April each year. The charge is currently £10 per year.

You do not have to pay ground rent if:

• you are a leaseholder at Singletree, Southfield Park or 52/54 Gladstone Road
• you exercised the Right to Buy your flat after 30 June 2022

Service charge and what it covers

The service charge covers your share of the cost of maintaining communal areas in the building and outside on the estate, such as gardens or car parks.

The following is a list of items commonly included in service charge budgets. Every development has a different service charge budget, so your budget may not include all of the items listed below. It may also include additional items specific to your development.

Building insurance

Covers insurance for the structure of the building. You do not need to arrange separate buildings insurance for your property. This does not include home contents insurance. You are responsible for arranging your own contents insurance.

Block repairs

General repairs to the communal areas of the block.

Caretaking and cleaning

Cleaning and caretaking of the block is usually carried out weekly, although the frequency may vary between blocks.

CCTV

Maintenance and repair of CCTV covering the communal areas.

Communal lighting

Electricity costs for lighting in communal areas. This may also include electricity used to power lifts and door entry systems.

Controlled entry system

Maintenance of intercom or door entry systems. If the intercom handset in your property is faulty, this will usually be repaired as part of the communal system. Replacement key fobs and communal keys are charged separately.

Fire detection maintenance equipment

Maintenance and servicing of fire safety systems and equipment, including fire alarms, air opening vents, dry risers and other fire safety detection equipment in the block.

Lifts service 

Maintenance and repair of lifts within the block, including emergency call buttons and lift telephone lines.

Lightning protection equipment

Some blocks are fitted with lightning protection systems. These systems safely direct lightning strikes into the ground. This charge covers maintenance and repairs of these systems.

Management fee

Covers the financial and administrative costs of managing and delivering services, including the Estate Officers and other supporting staff

Sinking fund

Money held in an interest gathering bank account. This is put aside to contribute towards the cost of any cyclical decorations and/or major works to the block or estate.

Water boosting equipment 

Some blocks have water boosting systems to maintain an adequate level of water pressure throughout the building. Where installed, these systems require annual maintenance.

Water tank maintenance and inspection

Sometimes blocks have water tanks. These require servicing and legally required legionella safety testing.

Window cleaning

Periodic cleaning of communal windows in the block. This does not include individual windows in a property.

How your service charge is billed

The service charge account year runs from 1 April to 31 March.

You are billed in 2 stages:

• an estimated invoice at the start of the year
• an adjustment once we calculate the actual costs

Estimated service charge

Each February, we send an estimated invoice for the coming service charge account year. This includes:

• a summary of the services we expect to provide
• a breakdown of estimated costs 
• the total amount you need to pay

The amount depends on where you live, the services you receive and the terms of your lease.

You should pay the service charge quarterly in advance.

We estimate your service charge using previous costs and known contract prices for planned or ongoing work. We then divide the total cost for your building or estate between the properties that receive the services, in line with your lease.

Actual service charge and adjustments

After the service charge account year ends, we review and audit the accounts to calculate the actual cost. This is known as reconciliation.

Each September, we send you:

• a Service Charge Actual Certificate showing the actual cost of the services
• an adjustment statement showing whether you have underpaid or overpaid

If you underpaid:

• the difference will show as a debit
• we will send you an invoice for the outstanding amount
• payment is due within 28 days

If you overpaid:

• the difference will show as a credit
• we will apply the credit to your account

Your service charge year at a glance

If you are late with payments

Under the terms of your lease, you must pay your leaseholder charges. This is as important as paying your mortgage.

If you do not pay:

• we may apply for a county court judgement, which can make it more difficult to obtain the best deals for utilities, broadband, mobile phones, credit cards, loans or mortgages
• we may then take legal action to take back your home and you will still be required to pay what you owe us including the court costs and any accrued interest

This is a last resort. We will always try to work with you to come to a suitable repayment agreement. 

If you are experiencing financial difficulty, contact us as soon as possible.