Your Rent and /or Estimated Service Charge for 2014-15
Towards the end of February you’ll receive notification of your new rent (if you’re a shared owner) and new estimated service charges for 2014-15 through the post.
Keep a look out for these documents as they contain important information, including what your monthly rent/service charge will be from 1st April 2014.*
How is my Rent increase calculated?
Your current rent will be increased by the Retail Price Index (RPI) annual percentage increase, plus either ½% or 1% depending on the terms of your individual lease. Your lease will contain full and specific details of how your individual rent increase is applied.
How is my Estimated Service Charge calculated?
If we provide services to your block and/or estate or buildings insurance, we analyse their current costs and estimate them for the coming year.
Communal repair costs may also be included in the estimate. Because we don’t know in advance what communal repairs might be required in the upcoming year, the actual costs compared to the estimate can sometimes vary quite a lot.
In September 2015 you’ll receive details of the actual costs for services we’ve estimated in 2014-15. For all the info you need on this, visit our article here.
What if the services for my property are delivered by a managing agent?
Some of our developments have managing agents who provide some or all of the services. We base our estimate on the latest managing agent budget available to us. These costs are shown on your service charge estimate as ‘Managing Agent Charges’.
If you’d like to know details on what the managing agent at your property delivers, please contact your Property Manager on 0300 456 2929 (option 4) or by email.
Is anything else included the Estimated Service Charge?
If you’re liable to pay ground rent, this charge will be included in your estimate.
Some properties have a sinking fund attached to them which is designed to help spread the cost of larger bills such as cyclical redecoration of the communal areas. Sinking fund contributions are charged monthly along with your estimated service charge. The sinking fund money is kept by us in a separate interest bearing account.
Your service charge estimate will also include a Management Fee which is a contribution towards our cost of providing your services.
Where can I find more information?
The notification being sent to you this month contains an information leaflet with a detailed explanation of your Service Charge Estimate. You can also find it online here, or contact your Property Manager on 0300 456 2929 (option 4) or by email.
(*Note – if you are a DIYSO home owner you’ll receive your 2014-15 rent & service charge information at least one month before the rent increase month detailed in your lease.E.g. If your rent is increased in December you’ll receive your notification before the end of October. As a DIYSO home owner the service charge you pay is an actual cost and therefore the information above about estimated service charges does not apply)