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Adur Homes - Leaseholders
Charges

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The landlord arranges provision of the services (The leaseholder pays for them)

Details of what can (and cannot) be charged by the landlord and the proportion of the charge to be paid by the leaseholder will be set out in the lease.

Usually the total expenditure for the block is divided by the number of flats in the block to determine the proportion due from each leaseholder.

Service charge accounts are issued in September/October of each year. They are based on an estimate of the charges for the current financial year i.e. from the previous 1 April through to the following 31 March. The service charge account includes an adjustment for the previous financial year being the difference between the actual expenditure incurred and the estimated account previously paid. The adjustment could be either a debit or credit.

Service charges can vary from year to year, they can go up or down without any limit other than that they are reasonable.

Landlords can only recover costs which are reasonable. Leaseholders have rights to challenge any service charges they feel are unreasonable at the Leasehold Valuation Tribunal (LVT).

Items of major work/expenditure are not included on the service charge account, but are billed separately on completion of the work.

When considering the purchase of a leasehold flat it is important to find out what the current and future service charges are likely to be. The Leasehold Administration Service can provide this information on request.

Instalment facilities can be arranged for any invoice for service charges or major work. The Leasehold Administration Service can provide detail of the terms that can be arranged for settlement of invoices.

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What happens if a leaseholder doesn't pay?

It is the leaseholder's obligation to pay service charges and ground rent promptly under the terms of the lease. If they are not paid and the landlord is able to show that the charges are reasonable, then he can begin a legal action to repossess the flat.

If you are having problems paying service charges please don't ignore the problem but contact the Leasehold Administration Service. Generally appropriate arrangements can be made for settlement of invoices.

The service will also provide assistance and copy documents in support of claims for Tax Credits.

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What are service charges?

Service charge are payments by the leaseholder for all the services the landlord provides.

A list of what we can and can't charge you for and the share you pay is in your lease.

Depending on the type of home you live in, the charge you pay may be your contribution towards the following services.

  • Maintaining grounds (for example cutting grass)
  • Lighting communal areas
  • Cleaning communal areas
  • Repairs in communal areas
  • Buildings insurance
  • Management fees

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What is ground rent?

Because leasehold is a tenancy it is subject to payment of rent. Adur's ground rent is a nominal £10 paid annually in advance on 1st April.

Ground rent is a specific requirement of the lease and must be paid on the due date.

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How do I make a payment?

See the making a housing leaseholder payment webpage.

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