Your service charge is set at a level to cover any expenses and services that we provide in accordance with the terms of your lease or deeds.
This can include buildings insurance, repairs and maintenance of communal areas, cleaning, grounds maintenance, communal electricity etc. We charge a management fee to cover our costs in managing these services.
If your service charges are set based on a budgeted figure for the financial year outlined in your lease, then we will also provide accounts within 6 months of your financial year-end, ie, if your lease stipulates that the financial year runs to 31st March, then the accounts will be issued to you before 30th September.
These accounts will outline all of the income and expenditure incurred in that financial year for your scheme and reconcile any over or under collection which may be due.
Some leases allow us to collect a proportion of your service charge to allow for future maintenance and repair responsibilities outlined in your lease. This contribution would be held in a fund which can be referred to as a ‘reserve fund’, ‘sinking fund’ or ‘cyclical fund’.
These funds would then be used to assist with future costs for major works such as communal roof replacements etc which may be covered under the terms of your lease. Some of our leases also require a contribution towards these funds on resale of the property. Please refer to your lease for details.
Usually your lease will specify that we provide the buildings insurance. If this is stipulated within your lease and you need to make a claim against the policy, please contact us to access a copy of the current insurance policy summary which also includes the contact details and policy number for you to make your claim directly with the policy provider.
However, if the insurance claim is regarding the communal areas of the scheme, please report this directly to us in the first instance.