Useful information regarding Leaseholder Services.
This is when you purchase a ‘Flat’ or a ‘Shared Ownership’ property for a fixed length of time. In this arrangement, you're known as a 'leaseholder’.
You will have a legal agreement with the landlord (sometimes known as the ‘freeholder’) which is called a ‘lease’. This tells you how many years you’ll own the property. Ownership of the property returns to the landlord when the lease comes to an end. (you can choose to extend the lease to avoid this).
Yes
A service charge is a payment you have to make towards the landlord’s costs of providing services, repairs, maintenance, insurance and management in relation to the building where your flat is. If your block of flats is on an estate, you also contribute towards managing and maintaining the shared areas of the estate.
Service charges may be actual or estimated costs. We split service charges fairly between all the flats in the building. It is important to note that the cost of the services to tenants is not subsidised in any way by leaseholders. We pay the percentage relating to properties we do not let on long leases. Tenants contribute to some of the charges through the rent they pay.
Service charges are generally sent to Leaseholders in April of every year (or when you newly purchase your property). They cover the cost of services provided from April of that year to the end of March the following year (365 days of the year, extended if it’s a “leap year”).
Estimated service charges.
We prepare an estimate of the costs for providing work and services to your building and estate during the coming year. We usually base the estimate on costs in previous years. We then work out your contribution to these estimates and send you details.
Actual service charges
- After a financial year has ended, we use financial records and information about services (for example, grounds maintenance contracts) to work out the actual spending for every building and estate that includes at least one leaseholder.
- As with the estimates, we will take the total cost and divide it among all the properties in the block or on the estate to find the cost for each flat.
- We then work out the difference between the actual costs and the estimates for each leaseholder. We do not expect the estimate to be identical to the actual cost, so there will be an adjustment to your account, either an extra charge or a credit.
- We send you a statement each year showing these costs and the differences, together with a summary of your account showing what you have paid and other information about service charges.
- If actual costs are greater than the estimate, we tell you what the increase is and ask you to pay this difference in the following years bill.
- If the estimate is higher than the actual cost we put a credit on your service charge bill for the following year.
Service charges – Terms of Lease
The rights of a landlord to collect service charges is set out in the lease. If the lease does not contain a clause on paying service charges, we cannot collect them.
Annual service charges – what can be charged?
As we have said above, the lease lists what can be charged for. This usually includes the following types of charges although you should refer to your own lease for specific details.
Annual service charges – what can be charged?
As we have said above, the lease lists what can be charged for. This usually includes the following types of charges although you should refer to your own lease for specific details.
The ground rent is a payment each year, due on 1st April, under the terms of your lease. Right-to-buy law limits ground rent to £10 a year in right-to-buy leases (Note – this can be different depending upon when you purchased your flat or have extended your lease period). You are invoiced for this every year in conjunction with your annual service charge.
- An administration or management charge which is your contribution to the cost of administering your accounts, including arranging insurance, working out and collecting service charges, together with a charge towards the cost of managing the council’s buildings and estates. It includes leasehold services staff and staff involved in managing the estate such as monitoring, resident involvement, nuisance, and repairs.
- Block repairs – day-to-day repairs to the outside or shared parts of your building. You will be provided with a schedule of repairs carried out to the block,. when we send you our actual costs (in your annual statements)
- Caretaking services – these include inspecting the estate and building where you live, reporting faults, cleaning areas as shown on your local schedule, picking up litter, moving rubbish bins and carrying out bulk refuse collections. The charge also includes travel time, materials, uniforms and monitoring. Most work is done on a scheduled basis, and some jobs may be done every day or every week while others are done less often.
- Shared electricity – lighting shared parts, and power for items such as door-entry systems, aerial boosters, security lights outside, lifts and heating.
- Shared TV aerial – keeping a shared television aerial in working order. You have to pay even if you choose not to use it.
- Door-entry system – maintaining remote-controlled door-entry systems if these services are in place, including regular visits under a planned maintenance contract.
- Estate repairs – repair and maintenance of the outside areas of the premises (your estate and building), as defined on your lease plan. They can include estate lighting, boundary walls, paths and playground equipment. You will be provided with a schedule of repairs carried out to the block, when we send you our actual costs.
- Grounds maintenance – work to outside shared areas included on your lease plan, in other words to grassed or planted areas around the block or estate, that are not private gardens. This includes mowing grass, weeding, pruning shrubs and other plants and replanting where necessary. It also includes killing weeds on paths, playgrounds and so on. Most work is part of a maintenance contract each year.
- Buildings insurance – your insurance premium each year under the leaseholders’ block policy
We programme major work each year as part of our obligation to maintain the structure and outside of the block in which you live. This may also include improvements to your building or estate.
The cost of some programmes of major work can be high.
When we believe that works will cost you or other leaseholders more than £250 each, we have to consult you to recover the full-service charges. This will apply on top of any other consultation carried out with residents, and the procedure we must follow and the information we give you is set out in law.
There is a separate administration charge for major work to cover the cost of consultation, working out and collecting charges, and dealing with questions relating to the work and the accounts.
Please see see our Major Works Guide for more information.
This section gives you a brief guide to what we are responsible for repairing and what you are responsible for repairing. The guide is not a substitute for checking your lease. Not all leases are the same.
As a leaseholder you are responsible for the cost of all repairs to your home. As the landlord we are responsible for the structure and outside of the building and all shared areas. However, under the terms of your lease you must contribute to the cost of this work.
Our repair responsibilities (as a guide):-
- Exterior walls
- External doors and windows
- Roof
- Foundations
- Timbers and joists
- Beams
- Chimney stacks
- Rainwater and soil pipes
- Sewers and drains
- Gas, water and electricity supplies up to the flat
- Communal heating
- Communal door entry systems
- External decoration
- Decoration to internal communal areas
- Communal doors and windows
- Communal gardens, paths, walls and fences
- Communal grounds and parking areas
Your repair responsibility (as a guide):-
- Fittings such as kitchen units and sinks
- Floorboards
- Internal non-structural walls
- Plaster or other surface material on interior walls and ceilings
- Internal doors and door frames
- Toilets, baths and showers
- Radiators, cisterns, tanks, boilers and pipes in the flat
- Gas, water and electricity installations in the flat
- Fixtures and fittings, and internal decorations
- Leaks or burst pipes, including damage caused to any other property as a result.
You do not need permission from us to sell your home.
When you sell the lease, you transfer the conditions contained in it (for the period that is left on the lease) to the new owner. This includes any outstanding charges that relate to the property. Your solicitor must register the change of ownership of the lease to Bury Council within 21 days of the transfer.
If you bought your property under the Right to Buy (RTB) scheme and sell it within 5 years, you may have to repay all or a proportion of any discount you received on the sale price. Prior to any disposal of the property - other than an exempt disposal within a period of 10 years from the date of purchase of the property from the council
you must first offer the same for sale (in writing) to the council. This is known as the right of first refusal.
You should advise us when you sell your property. We will then update our records and issue further invoices and any other relevant information to the new leaseholder.
You have the right to rent your home to someone else subject to certain restrictions within your lease. As the leaseholder you will remain responsible for paying the service charges on the property unless you legally transfer the lease to your tenant. We would therefore remind you to do the following:
- Ensure the tenancy agreement you use includes the same rules and regulations that apply to you;
- Contact your mortgage provider before you sublet;
- Tell us that you are subletting to make sure that you are covered for any insurance claims you may have;
- Let us have your correspondence address so that we can send you your invoices and any other information;
• Give us the name and contact details of your tenant in case we need to gain access to the property in an emergency; and
• Arrange for any gas appliances in the property to be serviced annually. This must be carried out by a CORGI registered gas engineer. You should give a copy of the safety check record (CP12) to your tenant.
Bury Council insures the building where you live. This is because it is still responsible for the upkeep, repair and maintenance of the structure and shared areas of the block. You are responsible for getting your own household contents insurance. The insurance covers the building element of your flat 365 days a year (1st April to the following 31st March) and is auto-renewed each year.
Our insurers are Aspen Insurance. They provide a 24 hour claims helpline - 0800 358 0172.
Can I take out my own Building Insurance?
No. Your insurance is automatically renewed by the council as part of your lease agreement– at the end of each year it is automatically renewed. You may take out content’s insurance .
Can I ask for a copy schedule?
Requests for copy schedules can be made here. (please state your flat address)
Who are my insurers?
Our insurers are ASPEN – phone number: 0800 358 0172
- February - Issue of Ground Rent notifications.
- April - Annual Service bills issued to all leaseholders.
- October - Annual statements posted.
It is very important that we have the correct information for many reasons - emergencies, repair works, access - please contact us here with any updated details.
I am subletting my flat – do I need to tell the council?
Yes – there may be occasions where we need emergency access and need to contact the occupier, please let us know details of your tenant, you can contact us here - REMEMBER THE RESPONSIBILITY OF THE FLAT IS YOURS, NOT YOUR TENANTS.
The Property Services team can provide the advice you require – please contact them via email property@bury.gov.uk – they will then lead the process with you.
If you intend to make alterations to your flat, which may impact on the structure and fabric of your flat, always seek advice before doing so, as you may be in breach of your lease if you don’t – request an alteration form by contacting the Housing Services team or call us on 0161 686 8000 (there may be a small fee involved) – you will then be contacted by a specialist advisor from the council.
Contact Housing Services and ask for the Sustainability and Investment Team. Information about Section 20 notices.
If you wish to sell your flat and would like to offer it to the council, please contact the Property Services team - property@bury.gov.uk for further information.
We have not received a Grounds Maintenance service recently - who do I contact?
Schedules are always built in for the month, year, however, if the service hasn’t been provided, please contact the Housing Services Team. Please state your address in all correspondences.
If you need to make a general enquiry or report a repair. You can contact the council in a number of ways:
- Online Form
- Payments: 0161 253 5056 or customeraccounts@bury.gov.uk
When we send your annual service charge invoice on the rear of the invoice it gives details of the various payment methods you can use to pay your service charge:-
- The Customer Accounts Team at the council collects all payments, you can pay in many ways.
Telephone - 0161 253 5056
E-mail - customeraccounts@bury.gov.uk - DEBIT or CREDIT CARD (Visa Credit, MasterCard, Visa Electron, Visa Debit or Maestro)
24 hour automated telephone service 0300 456 0542
24 hour internet payment facility using our secure card server at www.bury.gov.uk - BACS OR INTERNET/TELEPHONE BANKING
Barclays Bank PLC, 1 Central Street, Bury BL9 0JN
Sort Code 20-16-24 Account Number 33020983. Please ensure that you quote your
invoice number as shown on the front of this invoice or send a payment advice to the
Income Section, Room 2, Second Floor, Town Hall, Knowsley Street, Bury, BL9 0SP (Email - income@bury.gov.uk) - POST OFFICE you can use your bar-coded invoice at any Post Office free of charge.
- PAYPOINT OUTLET
Use this bar-coded invoice at any PayPoint outlet free of charge by cash or debit card.
How to check that your payments are up to date
If you need a statement of your account at any time, You can set up an online rent account here.
Your lease says you must pay service charges promptly when we demand. If you are having a problem with paying for whatever reason, please contact us. Depending on your circumstances we may allow you to repay any arrears in instalments; we will be able to offer advice such as putting you in touch with independent debt counsellors and help you to claim any benefits you might be entitled to.
It is important that you pay your service charges promptly. If you do not and do not contact us, or if you fail to keep to an agreement, we will take legal action to recover the money you owe. This could affect your credit rating and mean that you also have to pay court costs. If you fail to pay your service charges, you have broken the conditions of your lease, and you could lose your home. This is known as ‘Forfeiture of the lease’. If you forfeit your lease, you are not entitled to any money back and usually have to pay any service charges and costs you owe. You can ask the court to give you your lease back if you pay all the charges and costs you owe quickly, but you only have a short period of time to ask the court to do this.
I need to make a general enquiry or report a repair. You can contact the council in a number of ways:
- Phone - 0161 686 8000
- Online Form
- Payment 0161 253 5056 or email customeraccounts@bury.gov.uk