What Is A Service charge?
The service charge is an annual charge that applies to all sold Council flats and occasionally sold Council houses.
The service charge is paid by leaseholders to cover their share of the Landlord’s costs of repairing and maintaining the structure of the building and for providing various common services.
The Leaseholder’s share of the costs is calculated by dividing the total cost by the number of flats in the block.
The annual service charge is paid in quarterly instalments. A bill is sent to each Leaseholder in April, July, October and January each year telling you how much to pay.
How Much Will The Service Be?
When you applied to buy your flat you were sent a Section 125 Price Notice that provided details of the purchase price and the estimated service charges for the first 5 years of the lease. This information will give you some idea of the likely annual cost in the future.
How Will I Be Informed Of The Costs?
You will be sent a service charge bill in April, July, October and January each year telling you how much to pay in that quarter.
At the end of each financial year, the actual cost of the services and repairs will be calculated and the actual cost compared against what you paid in estimated charges for the same period. Details of the actual cost will be sent to you with the quarterly bill sent to you in October.
What Happens If The Estimated And Actual Costs Are Different?
If the estimated and actual costs are different your current year’s bill will be adjusted to take account of the difference.
If the estimated costs you have paid are more than the actual cost, your current annual bill will be reduced in October and January by the amount you have overpaid.
If the estimated costs you have paid are less than the actual cost, your current annual bill will be increased in October and January by the amount you have underpaid.
What If I Have A Query About Service Charges?
If you have a query about your service charge you should telephone or write to the Income And Home Sales Section at Wigan and Leigh Housing.
If your query cannot be answered immediately the matter will be investigated and you will be contacted with a reply.
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