When will I pay my service charge?

The service charge period is based on our financial year, which runs from 1 April to 31 March. You pay your annual service charge each year in April, in advance, on an estimated basis. The estimate covers what we think your share of the cost of the services will be.

Then, after the end of the financial year, we work out your share of the actual costs and compare the difference between the estimated charge and the actual charge. Once this has been done your account is adjusted and an invoice issued in September. 

Why do I pay an estimate?

We have to charge an estimate because we do not know in advance how much the cost of providing the services will be. Some charges, for example, block repairs, are difficult to predict because we do not know what repairs will need to be carried out, how many or how often.

We send you your estimated service charge at the start of the financial year, which begins on 1 April. We send the actual service charge after the end of the financial year. If the estimated charge was more than the actual charge, we will put a credit on your service charge account for the difference. If the estimated charge is less than the actual charge, we will put a debit on your account.

How is the actual service charge calculated?

The service charges are worked out by our Finance Department once the accounts have been finalised after the end of each financial year. 

If you disagree with a particular part of your service charge, you must tell the Leasehold Team and pay the part of the charges that you agree with while your complaint is being investigated. If you have any questions about the quality or standard of the services to your block please inform us.

Why do I have to pay the service charge as well as council tax?

Leaseholders sometimes ask why they have to pay us a service charge as well as paying Council Tax. The service charge is paid to the council as your landlord under your lease. It covers your share of the cost of the services we provide to your block or your estate.

Council Tax covers the services that the council provides to residents in Newcastle upon Tyne as a whole, such as social services, planning and leisure. By law, the council has to keep separate from Council Tax any income and spending to do with its managed properties. This means that Council Tax cannot be used to pay for the services you receive under your lease.

It also means that you are not paying for the same services twice.

What if I don’t agree with the charges I’ve been asked to pay?

If you don’t agree with a service charge or with a valuation for works, and you are not satisfied with the company’s response, you may want to have your case heard by the Leasehold Valuation Tribunal (LVT)..