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Ground rent and service charges

Ground rentpile of bank notes

Leasehold is a form of tenure that is similar to a long tenancy; you need to pay the council £10 ground rent per year. Ground rent is a specific requirement of the lease and must be paid on the due date.

Service charges

Your lease sets out your obligations to pay service charges to the council in addition to your ground rent. Service charges are payments by the leaseholder to the landlord for all the services, (heads of charge) the landlord provides, to the extent that the costs have been reasonably incurred.

These will include:

Usually the charges will also include the costs of management.

Other charges

Major works

Heads of charge

Below is an overview of each head of charge that make up the service charge, and how they are calculated. Your lease will stipulate which types of services the council can charge you for and state how your proportion of costs should be worked out.

Buildings insurance

We have to provide leasehold buildings insurance on an annual basis to cover any unforeseen events that cause damage to the building’s structure. You will be recharged a percentage of the total premium. You are strongly advised to take out your own contents insurance.

Estate services

We provide a caretaking service to your block and your proportion of the full cost is charged to you using the calculation provided in your lease. Using actual expenditure figures for the financial year, the charge consists of an operational charge per property and a team charge per property.

Shared heating

This charge applies only to Flaxmans Court residents, who as a result of the design of the buildings receive heating from shared communal boilers at Esmonde House. The charge includes the costs of the supply of gas for heating, and of servicing the boilers.

Communal electricity

This charge covers the costs for the supply of our staircase/walkway lighting to individual blocks of flats. You are billed the relevant proportion of the costs for your block.

Window cleaning

You will be charged a proportion of the annual contract costs for the regular cleaning (external and internal) of communal windows in your block of flats.

Grounds maintenanceLease 2

You will be charged annually as per contract for the following types of work:

  • grass cutting;
  • rose-bed maintenance;
  • shrub maintenance;
  • annual planting of beds;
  • hedge maintenance;
  • maintaining paths and paved areas;
  • weed removal.

TV aerial

Following consultation and installation of block Integrated Reception System (IRS) digital aerials, all leaseholders were given the option to pay over five years and individual charges are applied accordingly. This service charge may also include ad-hoc repairs undertaken to an IRS aerial throughout a service charge year.

Repairs

You will be charged for any communal repairs to blocks of flats. You are billed for works to your block as per the percentage agreed in your lease. You will also be given an itemised list of repairs carried out on your block.

Other charges

You pay council tax separately from your service charge and ground rent. You will be sent details each year. You are responsible for paying your water rates, electricity, gas and any other charges straight to the individual companies that provide them.

Major works

You will be charged for any planned maintenance or improvement works undertaken to your block in a service charge year. Costs per leaseholder are based on actual expenditure during the service charge year.

The council is able to make these charges under the Commonhold and Leasehold Reform Act 2002. This act also allows the council to charge for any improvement works to the building and grounds, as well as repairs. Tenants as well as leaseholders pay a service charge.

For more information contact Housing Services by telephone: 01634 333219 or by email: housing@medway.gov.uk / leaseholders@medway.gov.uk

Write to: Housing Services, Medway Council, Gun Wharf, Dock Road, Chatham, Kent ME4 4TR

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