Shared ownership charges and how to pay

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

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

How to pay shared ownership charges

Shared ownership charges are due on the 1st of each month. We offer several ways to pay.

You’ll need:

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

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 the charges by card using our secure online form.

Pay your shared ownership 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.

Rent

Before April each year, you will be sent a letter showing what your rent will be for the upcoming account year.

The rent is often referred to as 'subsidised' or 'discounted' because it's lower than the market rent you would pay in the local area. The rent is limited to a % of the value of the share we own.

Your lease and the letter will explain how the rent for the upcoming year is calculated.

Service charge and what it covers

The service charge covers your share of the cost of maintaining communal areas in the building and outside areas 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

A sinking fund is money set aside in an interest-gathering bank account to help pay for major works or cyclical maintenance and decoration to your block or estate. It is added to each year. This helps reduce the amount you need to pay when work is carried out.

Before any work starts, we will tell you the total cost and how much will be covered by the sinking fund.

It does not appear as a separate cost in your reconciliation letter, but you still need to pay it as part of your estimated service charge.

To find out the contribution for your property, email landlordservices@oxford.co.uk.

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 account year runs from 1 April to 31 March.

You are billed in 2 stages:

• your rent and an estimated service charge invoice before the account year starts
• an adjustment after the account year ends

Estimated service charge 

Before April each year, we send an estimated service charge 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 (you pay a share of the total)

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

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.

There are two exceptions to this:

• insurance costs, which are based on the rebuild cost of the property (not the market value)
• management fee, which is a fixed charge for all shared ownership properties and covers:
  • managing estates
  • managing service contracts and buildings insurance
  • running the contact centre (for queries such as repairs or defects)
  • legal services
  • preparing accounts, service charge officer and income collection

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
• if your account is already in credit, speak to customer services to request a refund

Your account year at a glance

Charging for major works

If we need to carry out work to your block or estate and your contribution will be more than £250, we will consult you formally before the work starts.

For more information, refer to Consulting leaseholders and shared owners about major work.

If you are a new model shared owner, your lease includes a £500 annual allowance for essential repairs during the first 10 years. See Housing repairs allowance for new model shared ownership for what this covers and how to claim.

If you are late with payments

Under the terms of your lease, you must pay your shared ownership 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 at rentsteam@oxford.gov.uk as soon as possible. We will discuss how we can help you and give you advice.