Annual Service
Charge Estimate
This leaflet explains how service charges are
worked out and what you are responsible
for as a leaseholder or shared owner.
Estimated and actual service charges
Service charges represent a share of our costs of providing and
maintaining services to your block and communal areas. You’re
required to contribute towards these costs under the terms of
your lease.
The financial year runs from 1st April to 31st March the following
year. After the start of the financial year we have to send you a
reasonable estimate of the amount we expect the service charges
to be.
Long leaseholders pay these estimated charges by four equal
instalments in advance on 24th June, 29th September, 25th
December and 25th March. But you can choose to pay by Direct
Debit in 12 monthly payments from April to March.
Shared owners pay these charges monthly, along with their rent.
www.mhs.org.uk
1.
What my service charges cover
The communal services you receive vary
according to where you live and the type of
property you own. The services that apply
to your home are shown on your estimate.
A list of the services that can be provided
by mhs homes is detailed on the following
pages, together with an explanation of how
we calculate the costs.
twice yearly bin cleaning and reporting
communal repairs. Your neighbourhood
officers and environmental managers monitor
the standard of cleaning and the grounds
maintenance and carry out regular estate
inspections to resolve any issues raised by
the residents.
Communal aerials
Repairs and maintenance of communal aerials
Communal general repairs
We sometimes have to make repairs to the
structure as well as external and communal
parts of a building. This charge will also
include maintenance to any water tanks
provided in the block and pest control
measures taken in the block
Communal glass cleaning
How we make our calculations
All calculations are based on the cost of
providing the service to your block and
communal areas except where stated
below. In order to calculate the estimated
block and/or estate service cost we look at
previous estimated bills and final accounts
and we adjust for inflation. We then work out
your proportion of the total block or service
cost. Your proportion is stated in your lease.
Sometimes leases show a percentage figure.
Other type of lease may say that you must
pay a “Reasonable proportion”.
Services provided
Caretaking
This charge is for the cleaning and upkeep of
external and internal communal areas such
as corridors, lifts, walkways and bin/shed
enclosures. It also includes litter picking from
paths, grass and drying areas, fly tipping,
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The charge is for monthly cleaning of communal
windows in the block. This service is provided
by an external contractor and the details can
be found on the notice boards in your block.
Lighting maintenance
Inspection and maintenance of emergency
lighting systems, where they’re installed
Door entry system
Where provided, the door entry system
charge covers the cost of its repair and
maintenance as well as the cost of the
telephone line.
Grounds maintenance
This charge is for maintaining communal
land including car parks, flowerbeds and
grassed areas. It includes a charge for
the maintenance of shrubs, and for tree
inspections every three years.
Lift maintenance
We look after your lifts, if applicable, making
sure they are in good repair. We use a
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contracted company to maintain the lifts
and pay them a fixed amount each year.
Lift costs are made up of annual planned
and preventative maintenance measures,
reactive repairs, electricity, lift monitoring
(phones/alarms) and lift inspection costs.
The management company sends invoices
directly to mhs homes for their service charges
along with any other obligations under the
Head Lease or Transfer (for example, ground
rent). We then pass on the charges to you.
Security maintenance
We run four types of funds to collect funds
towards large items of expenditure:
• cyclical maintenance
• roof replacement
• lift replacement
• general reserves.
This charge is for the cost of installation,
running and maintenance costs of CCTV.
electric gates and car parking barriers where
installed.
Water charges (communal)
This is the costs of a landlord’s water supply
to enable maintenance of the building and
grounds.
Gas (communal)
This is the cost of a gas supply for communal
heating facilities, where installed.
Electricity (communal)
This charge covers the maintenance of lamp
columns and replacement of light bulbs on
your block and communal areas. It includes
the cost of electricity supplied to all the
lighting, including entrance halls, balconies,
stairwells and on the estate grounds. It also
includes the cost of electricity supplied to
any equipment in the communal areas such
as door entry systems, water pumps and
smoke alarms. The timers will be changed
twice a year in Spring and Autumn to ensure
hallway lighting is adequate to coincide with
seasonal changes.
Maintenance of equipment
This charge is for inspection, maintenance
and repair or any plant or machinery at the
building, for example water pumps.
Management company charge
In some buildings and estates, the services
are provided by a management company.
www.mhs.org.uk
Reserve/sinking funds
Building insurance
Under the terms of your lease, we have to
insure the building against a range of risks.
The most cost effective way to do this is for
us to arrange cover for all our properties
with a single insurer. You should take out
separate cover for your contents and
personal belongings.
Annual audit fee
Each year the final accounts are reviewed
and certified by independent auditors. This is
to ensure that the service charge statement
represents a fair summary of the income and
expenditure, is sufficiently supported by
accounts, receipts and other documents
and has been prepared in accordance with
Section 21(4) of the Landlord & Tenant Act 1985.
Management fee
We charge you a fee for administering your
We charge you a fee for administering your
service charge account. This fee covers costs
over and above those already explained
above, including:
• Staffing and office costs of the parts of the
leasehold services that deal with service
charges
• The calculation, billing and collection of
service charges
3.
• Providing information about your service
charge account and general information
on all aspects of home ownership
• The administrative and IT cost of calculating
and sending you invoices, statements and
accounting for payments made.
Estimate of major works planned
during 2017 to 2018
Kent, ME4 4LL quoting your reference
number and address on the reverse of the
cheque. Please note we do not issue receipts.
Home or telephone banking
Please quote your reference number. Our
bank sort code is 60-05-09 and our bank
account number is 55357415.
PayPoint/Post Office (Allpay card required)
We’re giving you advance notice of work
we’re planning to do during the year. You
don’t have to pay for this now, but you may
want to start putting money aside. There
may be some money held in a sinking fund
towards the cost of the work. If the work is
going to cost you more than £250, we’ll need
to hold a full consultation with you. You’ll
see the final figure for the cost of the work in
the statement we send to you in September
2018 and payment will be due then.
Cash payments can be made anywhere you
see the Pay Point sign. Please take your
payment card with you. If you need a new
card, please call us on 01634 565333.
How to Pay Your Service Charges
Mincom
Direct Debit
We offer a text phone service for customers
with speech or hearing difficulties. If you
have a text phone, call 01634 301330.
Please contact us on [email protected]
or visit www.mhs.org.uk if you don’t already
pay by Direct Debit but would like to. You’ll
be offered the option to pay over 12 monthly
instalments starting in April.
ayments 24 hours, 7 days a week by
P
Debit and Credit Card
• Pay online using your online account at
www.mhs.org.uk.
• Payment line
• To make payments call 01634 565333 and
select Option 2.
•Payments can be made with one of the
following types of Credit/Debit cards:
Visa, Mastercard, Switch, Solo, Visa, Delta.
In person
• Visit mhs homes at Broadside, Leviathan
Way, Chatham, Kent, ME4 4LL
• We’re pen Mon-Fri 8:30am – 5:00pm,
Saturday 8:30am – 2:00pm to pay by
cheque only.
Services charged for but not provided
If we’ve estimated for a service that you don’t
receive (for example a lift, but there isn’t one
in your block), please email contactus@mhs.
org.uk to let us know. We’ll investigate and
remove that cost going forward if appropriate.
We’ll also tell you if your service charges
estimate is going to change. If removing the
cost would only make a small difference to
your overall bill, we probably won’t change
the estimate for this year. But you’ll be able
to see that you’re not charged for that item
when you get the final bill in September.
By post
Make cheques payable to mhs homes and
send to Broadside, Leviathan Way, Chatham,
www.mhs.org.uk
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