Service charge frequently asked questions
My service charges
Why are you charging a Management Fee?
Your lease states that it is reasonable for us to charge a
management fee to cover the costs of the Leasehold Service. We
charge a standard fee for all leaseholders, as everyone has equal
access to the service.
The management fee covers the costs of managing our Leasehold
properties.
Why are service charges estimated?
Your annual service charge is due in advance of the financial
year, which runs from 1 April to 31 March each year in accordance
with your lease.
Before the start of each year we are unable to say how much will
be spent on any block because costs cannot be predicted in advance
so it is necessary to estimate a charge.
The estimate is what we think your share of the cost of services
will be.
When are service charge accounts finalised?
After the end of each financial year we will work out your share
of the actual costs of each service.
We compare the estimated cost to the actual cost and will adjust
your service charge accordingly. Actual Service Charge Invoices
showing a credit or debit will be issued by the end of September
each year.
What happens if my account is in credit?
If you are in credit this will remain on your account. if you
have arrears on other YHN invoices it will be offset against any
outstanding amount otherwise it will be offset against your
estimated invoice when it is issued the following year.
Alternatively you can request a refund by writing to: Income Team,
Your Homes Newcastle, YHN House, Benton Park Road, Newcastle uopn
Tyne, NE7 7LX or by email to income@yhn.org.uk.
I live on the ground floor, why do I have to pay towards
lift maintenance, lighting etc?
Your property is part of a larger building. Under the terms of
your lease you must pay a share of the cost of all services
provided whether you benefit directly from them or not.
Payments
How long do you allow me to pay?
If your invoice shows a debit balance please arrange to pay this
within 10 working days.
I can’t afford to pay. What can I do?
Depending on your circumstances you may be able to spread the
cost but you will be required to provide proof of your income and
expenditure. Please contact the Income Team on (0191) 278 8757 if
you wish to discuss this.
If you want a referral to The Advice and Support Team contact us
and we will arrange this for you. The Advice and Support
Worker will identify which debts you should pay first and check to
see that you are receiving all the benefits to which you may be
entitled which could help you pay your service charge.
What will happen if I don’t pay?
If your invoice is not paid on time recovery action will be
taken. If you are struggling with debts please contact us so that
we can try and get you some specialist help and advice. It is
important not to ignore the situation as non payment is taken
seriously and could result in Court Judgments against
you.
I have recently moved into this property - why have I been sent
a service charge bill for a period when I did not live there?
If the previous leaseholder did not settle the outstanding
service charges the debt stays with the property, this means you
are now responsible for these costs.
Your solicitor should have advised you of any outstanding
service charges before completion of your purchase.
Subletting
I intend to sublet the property and no longer reside
there. Who do I need to inform?
You must inform the Leasehold Team and provide details of the
arrangement together with an alternative correspondence address.
There may be certain restrictions. Please contact us for
advice.
Your Buildings Insurance may be invalid if you wish to make a
claim and you have not informed us that you are subletting.
Is my tenant responsible for paying the service
charges?
No. The leaseholder remains responsible for paying service
charges. Any legal action for breaches of lease or non payment will
be taken against you.
Insurance
What is covered by the buildings insurance?
This covers you for unforeseen circumstances such as fire,
flood, vandalism etc.
It does not cover you for general wear and tear to the
building.
It does not cover your home contents (your belongings). You
should arrange your own home contents insurance.
Details of buildings insurance cover is contained in the
insurance booklet which you should have a copy of. If you would
like another copy please contact the Leasehold Team.
How can I make a claim?
You must complete a claim form which can be obtained from the
Leasehold Team, or from our website www.yhn.org.uk. You
then need to send this to the Insurers Claims Handler who will deal
with your claim.
Can I arrange my own buildings insurance?
No. It is a condition of the lease that the Council arranges the
buildings insurance on your behalf. You are responsible for
insuring your contents.
I don’t think that the insurance value is enough. Can I
increase it?
Yes. You can ask to increase the property reinstatement value at
any time. Please write to us asking for this to be increased. Your
premium will be adjusted accordingly.
Ground floor properties
I live on the ground floor, why do I have to pay towards
lift maintenance, lighting etc?
Your property is part of a larger building. Under the terms of
your lease you must pay a share of the cost of all services
provided whether you benefit directly from them or not.
Repairs
A repair is needed to the outside of my home; can I
carry this out myself?
No. Under the terms of your lease you are not allowed to carry
out any work to the outside of your property. Any external work,
including painting that is required, is our responsibility.
If any repairs are required please report them to the Repairs
Centre in the following ways:
How much do you charge me for repairs you carry
out?
You are required to pay a share depending on how many properties
are in your block. For example you live in a block of four
properties you would be required to pay 25% of the cost of any work
carried out to the block.
How do I know when a repair has been carried
out?
If the cost of any work will cost you more than £250 we have to
formally consult you over this, giving you an estimate of the
costs.
For any work that will cost you less than £250 the work will be
carried out without the need to formally consult you. We then write
to you on a quarterly basis advising you when a repair has been
carried out and how much this has cost.
If you have any problems with the work that has been carried
out, you will need to report these to us within 10 days of
receiving this letter.
When will I need to pay for the work that has been
done?
You will be notified throughout the year of any repairs carried
out to your building and the overall cost of these repairs will be
added to your Actual Invoice after the end of the financial
year.
You are charging me for a repair that has been caused by storm
damage, fire or flood but I pay buildings insurance to you. Why do
I have to pay for this?
If a repair has been necessary that was caused by storm, fire or
flood we will carry out the external work and invoice you for your
share which you are required to pay. You will then need to
complete a claim form and send this to the Claims Handler who will
decide if they are going to settle the claim or not. Any
settlement that you may receive from the Claims Handler can be used
to pay us for the repair that was carried out.
The Leasehold Team can provide advice on this is you are
unsure.
Queries or disputes with your Invoice
If you have a question about your invoice, please contact the
Leasehold Team if you have been unable to find the answer to your
question here, please contact the Leasehold Team. We aim to resolve
queries within 10 working days.
YHN complaints procedure
Step 1 – your complaint will be dealt with informally by an
officer from the relevant department.
Step 2 – if you have spoken to the relevant officer about your
complaint and they have not been able to put things right, or you
are not happy with the result you will need to write to us and a
manger will then investigate.
Step3 – if you have been through steps one and two and you are
still not happy with the result of our investigations, you can make
a complaint to Newcastle City Council’s complaints officer who will
review your complaint at:
Democratic Services
Civic Centre
Barras Bridge
Newcastle upon Tyne,
NE99 2BN
Tel: 0191 211 5116 or 0191 211
5180
Email: complaints@newcastle.gov.uk
Free legal advice on leasehold issues can be obtained from:
Leasehold Advisory Service (LEASE)
31 Worship Street
London
EC2A 2DX
Tel: 020 7374 5380
www.lease-advice.org
Disputes between leaseholders and landlords and other issues can
also be referred to the Leasehold Valuation Tribunal. Their contact
details are:
Residential Property Tribunal Service (LVT)
First Floor
5 New York Street
Manchester
M1 4JB
Tel: 0845 100 2614