Service Charges, Rent & Other Fees
Service Charges, Rent & Other Fees
Here you will find information about our Service Charges, Rents and Other Fees
It is important that you keep up to date with your service charge and rent payments. Failure to pay on time (in accordance with your lease) could result in court action being taken.
It is therefore essential that you contact us immediately if you fall into financial difficulty and are unable to make your usual payments. We may be able to direct you to organisations who can help, provide benefits advice or discuss repayment agreements.
- Service Charges
Your service charge is set at a level to cover any expenses and services that Together Housing provides 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 Together Housing will also provide accounts within 6 months of your financial year-end, ie, if your lease stipulates that the financial year runs to the 31st March, then the accounts will be issued to you before the 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 the landlord 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 your landlord provides the buildings insurance. If this is stipulated within your lease and you need to make a claim against the policy, please click here 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.
If you have purchased your property on a shared ownership basis, then rent will be applicable on the share of the property that you do not own.
For example, if you own 50% of the property, then you will pay rent on the remaining 50% that Together Housing owns.
Rent is calculated on the value of the shared you are not purchasing and applicable at the time of purchase which is outlined within your lease as the ‘Specified Rent’. Your lease will also stipulate when and how the rent can be increased.
- Ground Rent
Your lease will stipulate whether you pay a ground rent to the freeholder.
As a leasehold property, you do not own the land on which your property is built and the freeholder of this land may be due ground rent for the use of their land.
Your lease will stipulate how much is payable, if and when this will increase and when it is due.
Some leases refer to peppercorn rents. If your lease lists a peppercorn rent, this means that the rent is nominal and usually not collected by the freeholder.
For any other ground rent amounts, the freeholder of the land will serve you with a notice of ground rent along with the invoice in accordance with legislation as prescribed in Section 166 of the Commonhold and Leasehold Reform Act 2002.
- Other Fees
Your lease may allow Together Housing to recover other fees from you for costs that we incur in managing the scheme/your property in accordance with your lease. These may be referred to as administration costs, management fees, legal fees etc within your lease.
Please click here to see our our current fees.