We base our calculation of the costs payable for a given year on an estimate of costs; therefore you pay an estimated service charge onaccount. At the end of the site’s financial year we calculate the actual costs incurred to establish whether there was credit or deficit of funds i.e. if more money was invoiced than spent (credit) or the amount of expenditure exceeded the value of money collected (deficit).
How do I know what my service charge is spent on?
At the end of each financial year, we provide you with a certified set of accounts prepared by an independent examiner. This shows you the expenditure on management of the defined areas.
If I live in a freehold house why do I still have to pay a service charge?
If you purchase a freehold property, you will own the home and the land it is built on. There may be other areas of open space (such as play areas, woodlands, ponds and sustainable drainage systems) that form an integral part of the development and protect the value of your property which will incur costs to maintain. Your service charge payment is your contribution to the upkeep of these shared features. Your TP1 or service charge deed will outline your requirement to contribute towards the maintenance of these areas.
If my property is empty or sublet, why do I still have to pay?
Service charge is for all the public open space identified in your TP1 or service charge deed and each property owner contributes towards the costs of the services. If we did not charge you whilst the property was empty or sublet, we wouldn’t recover 100 per cent of the costs and there would be a shortfall which would have to fall unfairly upon the other owners. Under the terms of your transfer, service charge is payable for the full duration of the ownership of your property irrespective of whether it is occupied or not.
What happens if I sell the property?
Please contact us prior to the sale and we will provide our solicitors contact details, who will guide you through the process.
What will happen if I cannot afford to pay my service charge?
If you run into difficulties please get into touch with us to discuss this as soon as possible. In the first instance please contact our Customer Services team to discuss payment options.
What happens if I withhold payment?
We appreciate that sometimes legitimate disputes may arise with regard to service charge. However we have an obligation to collect the service charge money in good time. Therefore should you not advise us of any dispute, or if we feel your dispute is not legitimate, we will take action to recover any outstanding service charges. This action ranges from reminder letters, to court action and may differ on a case by case basis. We take this action to ensure that your development has the necessary funding to provide services throughout the service charge year.
Can the service charge increase/decrease?
The service charge is an estimate of the actual costs of providing the various services arranged by the Land Trust. The costs of these services can vary depending on maintenance requirements, charges made by contractors/suppliers, changes in the frequency or level of services required and changes in legislation. At the end of each financial year, accounts are prepared and certified by an independent auditor. Where the amount expended during the year differs from the service charge estimate a balancing charge or “year end adjustment” is required. The adjustment can be a credit if we over estimate or a debit if we under estimate. If we under estimate; an invoice will be sent to you for the balance due. If we over estimate, the adjustment is credited to your account and will reduce future invoices.