Leaseholder charges - Adur Homes

An explanation of leaseholder charges and what they're for.

Service charges

Service charges are payments by the leaseholder for all the services the landlord provides. A list of what the landlord can and can't charge you for and the share you pay is in your lease, and landlords can only recover costs which are reasonable.

Depending on the type of home you live in, the service charges you pay may be your contribution towards the following services:

• maintaining grounds (for example, cutting grass)
• lighting in communal areas
• cleaning communal areas
• repairs to communal areas
• buildings insurance
• management fees

To determine how much each leaseholder in a block of flats pays, the total expenditure for the block is usually divided by the number of flats in the block.

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, ie from the previous 1st April through to the following 31st March. The service charge account includes an adjustment for the previous financial year, which is 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. There is no limit to how much they can go up or down as long as they are considered reasonable. You have the right to challenge any service charges you believe are unreasonable at a First-Tier Tribunal.

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 Team can provide this information on request.

Ground rent

Leaseholders have to pay ground rent to the landlord. Adur Homes' 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.

How to make a payment

For information on how to make a payment to Adur Homes, please see:

• Pay for Adur Homes services

If you can't make a payment

As a leaseholder you have an obligation to pay service charges and ground rent promptly under the terms of your lease. If they are not paid and we are able to show that the charges are reasonable, we can begin a legal action to repossess your home.

If you are having problems paying service charges or an invoice for major work please contact the Leasehold Team as soon as possible. In most cases we can arrange a payment plan to help you settle an invoice. We can also provide assistance and copy documents in support of claims for Tax Credits.

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