Leasehold Service Charges

Service charges for leaseholders are contributions to cover the cost of maintaining and managing the building and communal areas. These charges are set out in the lease agreement and can vary from one block to another.

Ashford Borough Council Leaseholders pay a variable Service Charge, based on the repairs carried out in any financial year, together with a contribution for communal cleaning and electricity if applicable. The Service Charge also includes an annual management fee which is set to recover the cost of providing the Leasehold Management Service. All Leaseholders contribute the same Management Fee.

The following list provides a breakdown of all service charges and what they cover:

Repairs as demised in the lease agreement e.g. structural or other repairs to the block or shared services. Leaseholders will be liable to contribute towards communal repairs and repairs to the fabric of the building. Leaseholders are not charged for repairs or improvements carried out within Council owned flats.

Communal Cleaning where a leased property has communal areas, then a cleaning charge may apply. This could include the internal cleaning of communal areas, cleaning of internal and external communal windows, lighting and fire alarm testing.

Communal Electricity where a leased property has communal areas, then an electricity charge may apply. This can include communal lighting, lifts, door-entry systems and television amplifiers.

Emergency Light Discharge Tests & Electrical Installation Condition Report is required to be completed by the Council as the freeholder. This ensure that emergency lights automatically activate and provide illumination for the required duration during a power outage. Additionally a formal inspection and testing process is conducted to check the overall safety and condition of the building's electrical wiring and fixed equipment. The works are carried out by Ashford Borough Council's Electrical Services Division. Only blocks with communal areas receive these charges.

Management Fee covers the cost of managing all the leasehold properties owned by the Council. This includes maintaining records, producing statements, correspondence, dealing with day-to-day queries, billing & consultations.

Administration Charge covers the administration costs of carrying out work & arranging services to the building. This could include service contracts, tender documents, compliance management and repair reports.

Service charges are calculated based on actual costs incurred during the financial year the Service Charge relates to. Leasehold Services obtains a report of all communal repairs that have been carried out to the block or building that houses the leasehold property, and the charges are divided by the total flats in the block in accordance with the terms of the lease agreement.

Communal Cleaning Charges are calculated based on the Schedule of Rates provided by the cleaning company at the start of the contract, again divided by the total number of flats in the block.

Communal Electricity Charges are calculated using the invoices from the electricity supplier and divided across the block. Costs for electrical testing varies each year as advised to us by the Council’s Electrical Services Division.

The Management Fee is calculated by looking at the cost to employ the staff on the Leasehold Services Team together with the printing and posting costs of insurance, ground rent, quarterly statements and annual service charge documentation.

Service Charges are billed once per year, and payment is due within 28 days from the date of the letter. Ashford Borough Council will produce a ‘Calculation of Service Charges’ by 1st September each year.

Yes, all Leaseholders pay annual Service Charges, however these vary from block to block. Some Leasehold flats do not have a communal area, so are not liable to contribute towards communal cleaning or electricity costs.

Yes, Service Charges for the management and maintenance of a block are charged separately to the annual Buildings Insurance and Ground Rent.

Each Leaseholder will receive a ‘Calculation of Service Charges’ by 1st September each year, detailing their charge for the appropriate financial year. Alternatively, Leaseholders can contact the Leasehold Services team to find out their Annual Charge.

There are various methods of payment available including via an automated payment line, bank transfer and online payment. Please refer to the ‘Methods of Payment’ section on your Service Charge letter, or see the ‘Methods of Payment’ information in the Leaseholder Handbook.

We understand at times Leaseholders can face financial worries and we encourage early communication so that a resolution can be reached. If you know you will not be able to make your payment by the due date, please contact us as soon as possible via telephone or e-mail. You may be required to complete an Income and Expenditure form so that we can understand your circumstances.