Frequently Asked Questions

Leaseholders in General Needs (Non Sheltered) Accommodation - Changes to Service Charges

Q. What are service charges for?

Service charges are your share of what it cost us to manage, maintain, repair and provide services to your building and communal areas. For example, they can include:

  • heating and hot water
  • lighting
  • caretaking
  • gardening
  • repairs and maintenance
  • building insurance
  • administration costs
  • lifts and maintenance

There are extra charges when we do major repairs and improvements.

Q. Why are service charge arrangements changing?

Recent amendments to government legislation mean that we must provide you with a breakdown of those services and improvements that have been carried out on your particular property or block of flats and charge you an appropriate share. We will also provide you with specific details about your rights and obligations with any demand for payment of a service or administration charge.

Q. What are the changes?

From autumn 2008, you will receive a statement detailing the work and accompanying costs particular to your property. This will then be used as a basis for the next 12 months' service charge. This process is outlined in your lease and will allow you to see exactly how your service charge is being spent.

Q. How will service charges be calculated?

Charges will be based on the actual cost of the work for your home or block of flats. In previous years, we have charged a minimum fee to all leaseholders as it was not cost effective to provide charges specific to each property or block. The changes in legislation, however, mean that this no longer applies and we will be providing you with this detailed information.

This will mean you will only be paying for work that has taken place on your home and/or block of flats, but we want to point out that this is likely to result in an overall increase for most leaseholders.

Q. What difference will this make to the levels of service?

There are no proposals to change the levels of service; only the way the costs are recovered will change.

Q. Will I see any benefits?

You will be involved in consultation on major works and long-term agreements that affect your property or block of flats and in some cases will be able to suggest suitable contractors to carry out the work.

You will also be able to see exactly how your service charge is being spent.

Q. Will everyone have to pay the same?

Your lease sets out the specific percentage or proportion of the service charge payable by you.

Q. Is there any limit to the amount the service charges can increase by?

The service charge is variable and will reflect the true cost of services and works carried out to your property or block, therefore the charge can go up or down from year to year, without any limit other than that they are reasonable.

You have rights to challenge service charges if you feel they are unreasonable through the Leasehold Valuation Tribunal.

Q. Can I object to work that I don't think needs to be done?

We will consult with leaseholders before any major work is carried out and state why the work must be done (unless it's an emergency). Whilst you won't be able to object to the work, you will have a greater say as to how the work is carried out and who carries out that work.

Q. When will I have to pay?

You will continue to pay as you do now, under the terms of your lease.

Q. Where can I find out more information?

Contact: Leaseholder Services on (01954) 713334 or email: leaseholder.services@scambs.gov.uk (This link will open in a new window)

Or write to: Leaseholder Services, South Cambridgeshire District Council, South Cambridgeshire Hall, Cambourne Business Park, Cambourne, Cambridge CB23 6EA

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Or for independent advice contact: LEASE - The Leasehold Advisory Service, 70-74 City Road, London, EC1Y 2BJ

Tel: 020 7490 9580 or local rate on 0845 345 1993

Fax: 020 7253 2043

Email: info@lease-advice.org (This link will open in a new window)

Website: www.lease-advice.org (This link will open in a new window)

LEASE provides free advice and guidance to leaseholders and landlords on all aspects of leasehold law, including problems with service charges.