Service Charges

Service charges are levied on properties where tenants or leaseholders (including shared owners) have communal responsibility for the upkeep of an area e.g. hallways to blocks of flats or communal part of an estate or a communal service such as communal lighting, fire alarms, door entry systems, lifts etc.  The actual services provided are specified in the lease or as changed by subsequent agreement.

 

Variable Service Charges

BCHF operates a system of variable service charges. Tenants or leaseholders are charged for the services they receive provided on the basis of costs actually incurred.  You will be consulted annually about which services and the level of service you require.  The service charge is based on the estimated cost of providing those services for the following year plus allowances from previous years.

If in previous years the actual cost was more than the amount collected in service charges, then the service charge in the following year will be increased to recover this deficit in the service charge account.  Conversely if the amount collected was more than the actual cost, the money will be refunded to you by reducing the service charge in the following year.

 

Sinking Funds

BCHF has created sinking funds for the replacement of major items of equipment so that the cost will be spread over a number of years. 

 

Monitoring the Work

Our Contractors who carry out service charge work sign a board at each block of flats to show when the work was carried out.  You are invited to help us monitor this work by letting us know if the work was not carried out within 14 days of the due date, or if you are dissatisfied with the standard of the work.  If the work is not done then the service charge account will be credited.

For independent advice, you may visit the Leasehold Advisory Service website.