Leaseholder Charges

Ground rent is a fee that some leaseholders pay to us, separate from service charges. It usually applies to leasehold properties where we own the block. It's a fixed amount set out in your lease and paid to the freeholder. It isn't linked to services or maintenance.

Not all leaseholders pay ground rent, many lease extensions reduce it to a peppercorn rent (a very small or token amount).

We keep accurate records and only charge ground rent if your lease requires it.

If you pay ground rent, your lease will clearly state:

• The amount of ground rent
• How and when to pay
• Any rules about future increases

Your service charges cover the cost of looking after shared spaces and services that benefit everyone in your building or estate. They're made up of two main parts:

Block service charges

These apply to the shared areas inside your building. They cover cleaning and lighting in communal hallways and stairwells, repairs and maintenance to shared areas, lift servicing and safety checks, fire safety measures such as alarms and equipment check, and general upkeep to keep your building safe, clean, and comfortable. These services make sure your building is well maintained and meets safety standards for everyone who lives there.

Estate service charges

If your home is part of a wider estate, this charge covers shared outdoor spaces. It includes paths, car parks, green spaces, bin stores, and estate lighting. It often involves seasonal work such as grounds maintenance, tree care, and winter gritting. These services help keep the estate safe, tidy, and pleasant for all residents.

Sometimes, we enter into long-term contracts (lasting more than 12 months) for services such as cleaning, grounds maintenance, or lift servicing. These are called Qualifying Long-Term Agreements (QLTAs).

If the cost of any service under a QLTA is expected to be more than £100 per property in a year, the law requires us to consult with leaseholders before entering into the agreement. This ensures transparency and gives you the chance to comment on the proposed arrangements.

Management costs cover the work involved in running the services you receive. This includes staff time, administration, arranging inspections, managing contracts, and supporting customers. 

Your lease tells us how we calculate these costs, and we follow those terms carefully to make sure everything is fair and transparent.

These charges also make sure your lease is properly managed, covering services that help you understand your rights and responsibilities as a leaseholder.

Management costs include:

• Expert leaseholder support - helping you navigate your lease terms and obligations.
  
  
• Building management - making sure communal areas are well-run and maintained.
  
  
• Administration costs - processing service charge accounts, handling lease queries, and managing payments.
  

 

Example calculation for a management cost

If the total cost of services for your block is £10,000 and your lease says management costs are calculated as 10% of reasonable costs, then:

£10,000 × 10% = £1,000

This £1,000 is shared between all leaseholders according to the apportionment set out in your lease.

This type of insurance protects the structure of your home, including walls, roofs, windows, and permanent fixtures. It does not cover your personal belongings, so you'll need separate contents insurance for those.

Buildings insurance covers your property against unexpected events such as fires, floods, and other major risks. The cost (known as the premium) is based on several factors, including:

• Financial Conduct Authority (FCA) guidance
  
  
• Risk assessments
  
  
• The property's reinstatement value (the cost of rebuilding your home)
  
  
• Property size and type
  
  
• Previous claims history (premiums may rise if the building has had claims before)

We regularly review our insurance contracts to make sure we're getting the most suitable cover at the best possible cost. We also consult with customers to ensure value for money while maintaining adequate coverage, so you can feel confident your home is properly protected.

We send you a copy of the insurance policy at every renewal, and if you need another copy at any time, you can request it from us.

Administration costs are charges for certain tasks we need to carry out to help manage your lease. These are different from service charges, ground rent, or insurance. You may need to pay these costs when we support you with legal or lease-related processes.

Examples of administration charges include:

• Valuation costs
  When we need to check the value of your home to help with things like selling, remortgaging, or extending your lease.
  
  
• Solicitor or legal fees
  Costs for legal work connected to buying, selling, or making changes to your lease.
  
  
• Help with lease extensions
  We review your lease, work with your solicitor, and prepare the documents needed to extend how long you can own your home.
  
  
• Help with resales
  We check the buyer's details, complete the required forms, and make sure everything follows the rules in your lease.
  
  
• Help with remortgaging
  We provide your mortgage lender with the information they need and confirm details about your lease.

We review and publish these costs every year to make these processes clear and transparent, so you understand what you're paying for.

Major work refer to significant repairs, maintenance, or improvements carried out on a building or estate that leaseholders contribute to through service charges. 

This type of work goes beyond routine upkeep and often involve large-scale projects that keep your building safe, compliant, and in good condition:

Examples of Major Work

• Roof replacements - Fixing or replacing worn-out roofing materials
  
  
• Structural repairs - Addressing issues with walls, foundations, or balconies
  
  
• Lift replacements - Installing new lifts or carrying out major repairs
  
  
• Communal decorations - Repainting or refurbishing shared areas
  
  
• Fire safety upgrades - Installing or improving fire alarms, sprinklers, or emergency exits
  
  
• Major work can also include external decoration, window replacements, and upgrades to shared systems.

 

How do we find out when 'major work' is needed?

We find out in two ways:

• It's part of a plan of work done in a cycle (cyclical maintenance), where we schedule large projects in advance to keep buildings in good condition.
  
  
• When customers or colleagues report repairs that require urgent or significant attention, triggering us to respond.

If the cost of major work is more than £250 per property in the block, the law requires us to formally consult with leaseholders under Section 20 of the Landlord and Tenant Act. This gives you the chance to review the proposed work, understand the costs, and provide feedback before we start any work.

How Are Costs Shared?

Your share of the cost is calculated using the apportionment method set out in your lease, so everyone contributes fairly according to their property's terms.

Overview of the Consultation Process

The consultation process normally involves several stages, and some stages require a minimum 30-day consultation period. This gives you time to consider the proposals and respond with your comments or observations. The stages typically include:

• Initial Notice of Intention - We explain what work is needed and invite your feedback.
  
  
• Tendering and Estimates - We obtain quotes and share them with you for review.
  
  
• Final Decision - After considering your feedback, we appoint a contractor and confirm the costs.