Trafford Housing Trust

Leaseholder - Service Charges & Billing

UtilityBills_300_altIt costs us money to carry out repairs or work to keep your property or block in good condition, to manage it, and to provide any other services for you.  Service charges are your share of these costs.


If you live in a leasehold property, your lease says that you must pay service charges. The amount we charge depends on where your property is and what services we provide. If a neighbour's service charge is different from yours, this may depend on the provisions in their lease or when they purchased the lease.  We pay the tenants' share of the costs for repairing, maintaining and managing properties and blocks. The tenants then pay us back through their rent and service charges. Leaseholders don't put any money towards tenants' service charges.

 

We divide up the cost of each service by the number of properties that use or benefit from it.  For example, if you live in a block of eight flats, your share of the cost will be 1/8th of the total cost.   So, if the total service charge for a block of eight flats costs £160, we will divide this amount by four so each flat will pay £20.

 

Costs are divided up in different ways for different services.  Some costs are worked out for each individual property, for example your building insurance premium. Other costs are worked out for the whole block then divided by the number of flats to find out the cost for each household, for example cleaning, grounds maintenance and communal lighting.

 

If you want to know what we charge you for, please look at the service charge invoice we send to you every September. The following information will provide you with details of what is normally included in your service charges. You may not be charged for all of these services. You will only be charged for services you receive.

 

Ground rent

A charge for using the land where your property is.  This is currently £10 a year (depending on what your lease says). The amount is set by law and all leaseholders must pay.

 

Communal lighting

Your share of the cost of lighting shared areas both inside and outside your block.  The electricity cost for the block is divided equally among the total number of properties in the building.

 

Lift maintenance

Your share of the cost of servicing any lifts in your block and keeping them in working order.  The cost for the block is divided equally among the total number of properties in the building.

 

Communal cleaning

Your share of the cost of cleaning the shared parts of your block. The costs include staff wages, training, materials, stores and other costs.  The cost of providing the cleaning service is divided equally among the total number of properties in the building.

In low-rise blocks the service covers general cleaning of the shared areas inside the building, including sweeping and mopping floors and stairs, dusting ledges and surfaces, cleaning marks off walls and cleaning inside glass, sweeping the entrance and picking up litter.

In high-rise blocks the service covers general cleaning of the shared areas inside the building, including sweeping, mopping and buffing the floors and stairs, cleaning chute rooms, dusting ledges and surfaces, cleaning lifts, cleaning marks off walls and cleaning inside glass, sweeping the entrance and picking up litter.

 

Grounds maintenance

Your share of the cost of maintaining the grounds surrounding your block.  This includes cutting grass, looking after shrubs and picking up litter.  The cost of maintaining the grounds depends on the size of the area of grass surrounding your block.  The cost is divided equally among the total number of properties in the building.  The major part of the work includes:

• picking up litter from grass and shrub areas around blocks every two weeks;

• cutting grass around blocks roughly once every two weeks depending on the weather;

• spraying weed killer on shared areas, fences around blocks of flats and hard surfaces like concrete slabs

We do not maintain your garden areas if they are privately owned.

 

Maintenance of fire protection equipment

Your share of the cost of the annual servicing and repairs to Fire Protection Systems and Equipment within high/low rise blocks of flats.  The cost for the block is divided equally among the total number of properties in the building.

The major part of the work includes:

• servicing and repairs to fire alarm systems, emergency lighting systems bin rooms fore suppression systems and fireman's switches ("the Services")

• servicing and repairs to dry risers

• servicing and maintenance of portable fire extinguishers and fire blankets

 

Buildings insurance

It is a condition of your lease that Trafford Housing Trust arranges buildings insurance for your property.  This means you are covered in case there is any damage to the structure of your property. This covers the roof, walls, ceilings, floors, doors and windows and the full cost of rebuilding the property.   The policy covers the building, but not the contents such as your furniture and other belongings.  We strongly recommend that you also take out home contents insurance.

 

Administration fee

 

The 15% administration fee is what we charge you for managing leasehold properties. This includes the cost of staff, administration, calculating and collecting service charges and answering your questions. The fee also covers the cost of us arranging and inspecting repairs in shared areas.  We add up what it costs us to provide services for leaseholders, then divide it between all of our leaseholders.

 

Service Charge Disputes

We will always try to work out your charges properly and fairly but if you think we have made a mistake or charged you for something you have not had, please do the following.

• Tell us straight away - we will look at your account again and make sure it is correct.  From September 2011, you will have 28 days within which to dispute your service charge invoice.  This will give us the opportunity to investigate your query thoroughly and efficiently.

• When you contact us, please tell us exactly what charges you don't agree with and why.

• If we investigate the dispute and we believe you have been charged correctly and you still think you are being charged unfairly, you will be able to apply to an independent leasehold valuation tribunal.

 

Leasehold valuation tribunals have been set up under the Housing Act 1996. Either you or we (your landlord) can apply to the tribunal to settle a disagreement about charges. The tribunal will decide:

• if the cost of the services we are charging for is reasonable;

• if the work being charged for is of a reasonable standard; and

• if the amount we are asking for is reasonable.

 

You cannot appeal to a tribunal if:

• a court or tribunal has already made a judgement about your charges; or

• you have already agreed that the charges are correct.

 

The tribunal may decide that you must pay all of the charges, or they may decide that we must reduce our charges to you. When the tribunal have made a decision, we have to accept it.  The tribunal can charge up to £500 to hear your case. The tribunal can choose to charge these costs to us or you. They are more likely to charge you if they do not think you have a valid claim. If you want a leasehold valuation tribunal to consider your service charges, please contact:

Residential Property Tribunal Service
First Floor
5 New York Street
MANCHESTER M1 4JB

Tel: 0845 100 2614 or 0161 237 9491

Fax: 0161 237 3656

Email: northern.rap@communities.gsi.gov.uk

Website: http://www.rpts.gov.uk/index.htm

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