Why do I pay a Service Charge?
As you live in a managed development, a number of services are arranged by the Management Company and the costs are shared by the owners. Your Lease or Transfer Deed will show the proportion of the costs you have to pay.
At the start of the financial year, a Service Charge budget is prepared and sent out to all owners. This budget is an estimate of costs for the forthcoming year which is based on previous years expenditure.
Following the end of the financial year, Service Charge Accounts, are prepared for each development, as in accordance with the lease or deed, and legislation. The service charge accounts detail the actual expenditure during the year and are certified by an independent Chartered Accountant, as being accurate.
When the accounts are prepared we compare what the actual costs have been to what we have billed during the year, based upon the budget, to identify any surplus or deficit. If expenditure has been lower than anticipated then there will be a surplus that will be credited back to your account; if costs have been higher there will be a deficit, and an additional charge will be payable.
Why has my Service Charge increased?
As the Service Charge is an estimate of the actual costs of various services, they can be depending on Contractors charges changing, utility providers increasing their charges, or the level of repairs needed might be higher than anticipated. For example, utility suppliers for electricity or water may increase their prices on communal supplies, or usage might be higher than previously anticipated.
How do I pay my Service Charge?
Payments can be made by cheque, standing orders or calling the office and we can take a payment over the phone.
What should the notice of intention to carry out major works contain?
A notice of intention must be sent to each leaseholder. The notice must describe in general terms the works proposed, or specify a (reasonable) place and hours at which a description may be inspected. The notice should also give the reasons why it is necessary to carry out the proposed works and invite observations in writing within 30 days. Where applicable it should also inform leaseholders of their right to nominate a contractor. The landlord must have regard to any observation received by the due date and seek estimates from nominated contractors where applicable.
What is Ground Rent?
If you live in a leasehold property, you have purchased your home for the remainder of the term of the lease. Under the terms of your lease there is a ground rent payable to the owner of the land and the building, the freeholder. The amount of ground rent, how it is paid and when it will increase is stated in the lease and will not change if the owner of the freehold changes.
If I have a maintenance issue – who should I call?
If you are an owner of the property, then please call the offices of KTS Estate Management on 01903 889799. If you are renting the property, then in the first instance, please call your Letting Agent.