Final Accounts
Why does it take so long to issue final accounts?
Why has the management cost increased to 26%?
Why have lighting costs increased?
General Inquiries
Can adaptations for disabilities be carried out to my property?
How should I report dumped rubbish?
What do Estate Services include and what am I paying for?
The cleaning in my building is not done to a reasonable standard. Who should I call?
Why is the grass not cut regularly?
If I pay service charges why do I have to pay major works bills as well?
What does the Management Charge cover?
Why are my service charges different from my next-door neighbour yet we live in the same building?
Why are my service charges higher than my neighbour if we live in identical properties?
I have a leak from the property above. Who should I inform – who will deal with the problem?
Can I change the windows in my flat?
Estimate
Why am I asked to pay for repair costs in advance?
How can I get a statement of my service charge account?
I am getting behind with my service charge payments, what will Ealing Homes do?
Why are service charges estimated?
I want to sell my flat and need information regarding the service charge and possible works.
Why do I have to pay Service Charges?
How do you work out my service charge?
I have received my estimate late, what should I do about April and May payments?
What should I do about my standing order?
As I have just received my estimate will I get an arrears letter at the end of the month?
What payment methods are available to Leaseholders?
If my service charge account is in credit, can I have a refund?
How many times a year will I be billed for service charges?
Why do I have to pay service charges when I do not believe I benefit?
If I pay service charges, why do I have to pay major works bills as well?
What if I believe I have not received a service?
I never see my caretaker and I’m not satisfied with the caretaking service.
Why are service charges estimated?
Building Insurance and Subletting
What is covered by the building insurance?
Am I subsidising other leaseholders by paying more building insurance for a similar sized property?
Why do I have to pay for a buildings insurance certificate?
How is the sum insured determined?
Why is my premium higher than my neighbours? We have exactly the same size flat in the same block?
Why does it take so long to issue final accounts?
Why does it take so long to issue final accounts?The final accounts are produced and sent to leaseholders during September for the previous financial year ending 31st March. This is due to the fact that the accounts have to be closed before Ealing Homes can calculate the actual costs for each block and estate and apportion it to your property. Compiling complex accounts including an itemised breakdown of repairs in vast numbers does unfortunately require an extended period of time.
Why has the management cost increased to 26%?
Why has the management cost increased to 26%The estimated amount billed for services to leaseholders was significantly lower than the actual management costs attributable. The reason for this is because we are now identifying central housing costs. The management fee encompasses many elements such as: · Staffing costs of the Home Ownership Team and a proportion of office rent· Maintenance and servicing of leasehold IT systems· Creating and sending of leasehold literature: Estimated invoices, final accounts, statements consultation notices, flyers, handbooks, letters etc.· A proportion of the cost of managing the estate services including caretaking, pest control, graffiti removal and anti-social behaviour· A proportion of the costs of the Community Involvement Team – creating and sending publications such as Key Issues, surveys, flyers, maintenance of the Ealing Homes website and servicing the Leasehold Forum· A proportion of the cost of support services such as finance team for processing payments and issuing refunds, procurement team who arrange and maintain contracts with contractors, human resources & payroll.
Why have lighting costs increased?
Why has lighting costs increased?The increase in landlord’s lighting costs reflects the general increase in electricity costs. Some of the landlord’s lighting costs were unreasonably high for some blocks. In these cases the lighting cost has been capped at £25 per property and an investigation is to be carried out on the meters to ensure accuracy.
I was told that my service charge account was in credit when I sold my property. Why can’t I get a refund?
From the 1st April 2005 any credit or debit on a former owner’s account at the time of sale transfers with the property and is therefore transferred to the new owner’s account. Solicitors are notified of this in presale enquiry packs. If your account was in credit, you should ask your solicitor to claim this money back from the purchaser.
Can adaptations for disabilities be carried out to my property?
In most cases you will be able to carry out adaptations to your property and may even be entitled for assistance from the Council. However, under the terms of the lease, if alterations to the property are necessary, you will first require our written consent before proceeding with the works. This is to ensure the proposed works will not endanger the structure of the building.In the first instance you should contact the Council’s Social Services department on 020 8825 8000 or email sscallcentre@ealing.gov.ukSocial Services will allocate an Occupational Therapist to investigate the possibility of installations or the provision of adaptations to assist you in your home.If the recommendations include alterations to your property you will then need to seek our written consent. As a leaseholder, you will remain responsible for the ongoing maintenance of all installations.
How do I report graffiti?
Is it the same for internal communal areas and external areas?For both internal communal and external areas you should call customer services on 020 8825 6000.
I live on the ground floor and do not use the stairwell, why I am being charged for landlords lighting provided in the stairwell?
Your property forms part of the building. Under the terms of the lease you are liable to contribute towards the cost of all services provided to the block whether you benefit directly from them or not (with the exception of heating).
How should I report dumped rubbish?
You should contact the Estate Services Team who will investigate your queries:020 8825 5405 or the East area (covering Acton, Ealing and Hanwell)020 8825 8593 for the West area (covering Greenford, Northolt, Perivale and Southall)
What do Estate Services include and what am I paying for?
Estate service includes the following:· Sweeping and cleaning of the communal areas in your building. For example, entrances, landings, stairs, handrails, drying rooms, residents store areas and boiler rooms.· Cleaning bin rooms and unblocking rubbish chutes· Checking that lifts are working and kept clean· Reporting repairs · Removing illegally dumped furniture and rubbish within 5 working days· Removing of graffiti within 7 working days (offensive within 24 hours)· Carry out litter picking in certain areas such as communal gardens, pathways and car parks.· Rotating and moving paladin bins· Pest control (individual properties and communal areas)· Removing abandoned vehicles· Replacing light bulbs· Dealing with anti-social behaviour
The cleaning in my building is not done to a reasonable standard. Who should I call?
You should contact the Estate Services Team who will investigate your queries:020 8825 5405 for the East area (covering Acton, Ealing and Hanwell)020 8825 8593 for the West area (covering Greenford, Northolt, Perivale and Southall)
Why is the grass not cut regularly?
The grass is cut based on the height of the grass that has grown rather than on a number of cuttings per year. If there are issues with the service you should contact your housing officer at the local housing office who will investigate your queries:020 8825 8822 for the East Area (covering Acton, Ealing and Hanwell)020 8825 8833 for the West Area (covering Greenford, Northolt, Perivale and Southall).
If I pay service charges why do I have to pay major works bills as well?
Neither the Council nor Ealing Homes operate a sinking fund for major works that are rechargeable under the terms of the lease. Ealing Homes’ current practice is to invoice for major works separately from the day-to-day service charges. This allows us in some cases to offer various repayment options for the charges, which can be large. Such repayments options are not available for day-to-day service charges. The charges made to your annual service charge account are for routine works and services that the Ealing Homes provides to your building and estate (if this applies). There are also major works that take place on a cyclical or ad-hoc basis such as cyclical external decoration and roof replacement works, which involve higher expenses. Under the terms of your lease agreement, you are required to contribute to the expenses incurred by Ealing Homes in carrying out works and providing services to your building and estate (if this applies).
What does the Management Charge cover?
This is to cover staff on-costs for preparing estimates, maintaining service charge accounts, sending information to the leaseholders, keeping & maintaining records, consultation and answering leasehold queries etc. It also includes a proportion of other services operated by central teams, such as Finance, HR, Payroll, Service Development, I.T. and Area Offices. (see 1.7 for more details)
Why are my service charges different from my next-door neighbour yet we live in the same building?
The method of calculating service charges is stipulated in the lease as being the rateable value of your property in relation to the total rateable values of all the properties in the block. Rateable values were set by the Inland Revenue and although frequently a higher rateable value denotes a larger property, various other criteria were used to compile the rateable value of an individual property. Generally therefore, the larger the property, the higher the service charge contribution. When the values were originally set a period of time was specified for any appeals. This period has now ended and as a result the rateable value of a property cannot be altered.
Why are my service charges higher than my neighbour if we live in identical properties?
There are a number of reasons for this they include:· That they purchased their property before April 2001 and the £30.00 flat management fee does not apply.· That your neighbours property has a lower rateable value than your property· That they purchased their property at a different time to you and either you or their property has a final account adjustment for a previous year that is not applicable to the other property.· That they are still within the initial period of their lease and therefore, the charges relating to repairs and maintenance may be limited to the amount shown on their annual service charge estimate that was issued with their offer of sale notice, plus an amount for inflation.· That there is a different insurance valuation and therefore different insurance premium for each property.· Where communal heating is provided to a block, your neighbours may have disconnected from the communal supply thus the heating element would have been removed from the service charge
I have a leak from the property above. Who should I inform – who will deal with the problem?
In the first instance you should contact your neighbour and inform them of the leak. They should either contact Ealing Homes if they are tenants or if the leak is emerging from communal pipes (generally concealed within walls or lofts) or ask them to arrange for the leak to be repaired if it is their responsibility (such as internal plumbing). If that is not possible you should contact Repairlink and explain the situation. Repairlink contact numbers:0800 181 744 for the East Area (Acton, Ealing and Hanwell)0800 181 541 for the West Area (Greenford, Northolt, Perivale and Southall)
Can I change the windows in my flat?
The repair and replacement of the windows in your flat is the responsibility of the Council.
You are required to contribute to the repair/replacement cost by way of a major works charge. If
all leaseholders are in agreement they can ask Ealing Homes to change their leases so that
responsibility for the repair and replacement of the windows is transferred to them. Please note
that all leaseholders must agree to this as well as pay for Ealing Homes’ and Ealing Council’s
legal and administration costs. The ongoing maintenance and renewal or replacement of the windows
would then become the responsibility of the leaseholders for the term of the lease.Please also note
that if you replace your windows without having your lease amended you will be required to
contribute to the cost of any future window replacement programme carried out to your
building. Your contribution will not be reduced even if you do not have your windows
replaced. You may be required to reinstate the property if the windows have not been fitted to a
reasonable standard or have not had appropriate planning and building regulations approval.
You should contact Home Ownership Services to find out about granting retrospective landlords
consent under the terms of the lease.
Why am I asked to pay for repair costs in advance?
This estimated charge is a contribution towards the cost of any routine work to the building, which might be required during the year. We will provide you with an itemised breakdown of any routine work carried out to the building in the final accounts for the year. If the amount estimated is not fully used then it will be refunded. However, if the cost of repairs exceeds the amount charged in the estimates, the amount will be debited to your service charge account.
How can I get a statement of my service charge account?
You can request a statement of account at any time, provided this covers the period since you have been the leaseholder. Please contact the Home Ownership Team on 020 8825 8291 or by email at homeownership@ealinghomes.net specifying the period you require. Please provide your full name, the address and postcode of the leasehold property concerned, your address (if different) and your service charge reference account number to help us identify you as the leaseholder concerned. A daytime telephone number will also be helpful.
I am getting behind with my service charge payments, what will Ealing Homes do?
Under the terms of your lease agreement you are responsible for paying your service charge by the 15th day of each month. In the first instance we will write to you informing you that your service charge account has fallen into arrears and request that you arrange to bring your account up-to-date immediately. If you are unable to make the required payment then you should contact us immediately. The contact details will be shown on the letter that we send to you. If you have a mortgage, your mortgage lender may be able to assist you. They may pay the outstanding bill/arrears on your behalf and add it to your mortgage. This might be cheaper than getting a loan.
What if I can't pay?
If you are having a problem with payment for whatever reason, please contact us without delay. If you are out of work, disabled or retired you may be able to get help with paying your service charges. For more information, you will need to contact your local Department for Work and Pensions office. You can also contact your local citizens advice bureau or the Home Ownership Team.
The welfare benefit system can provide help to owner occupiers in certain circumstances if they have become unemployed or are suffering financial hardship. If you are in receipt of income support or Job Seekers Allowance you should inform the benefits agency of the service charges you are required to pay. You will need to send a copy of each bill you receive - including your estimated service charge, your final account and any details of proposed works. You are required to inform them of any changes to your service charge within four weeks of receipt of the demand.
Your lease states that you have to pay service charges promptly on demand. It is important that
you pay your service charges promptly. If you fail to do so and do not contact us, or if you fail
to keep to an agreement, we may take legal action to recover the money you owe. If you fail to pay
your service charges you have broken the conditions of your lease and you could lose your home.
Why are service charges estimated?
The terms of your lease and the Landlord and Tenant Act 1985 (as amended) provides for service charges to be paid in advance. You are required to pay your service charge on an estimate and an adjustment is made to your account when the actual costs are known. At the start of each year we estimate the charges which is based on the actual cost of providing the service to your building over the previous 4 years and adding a projected inflation allowance for the forthcoming year. This gives us a good indication of the amount we are likely to spend on your block and estate for the forthcoming year, however, we cannot know with any absolute certainty that there will be no additional costs incurred during the year.
I want to sell my flat and need information regarding the service charge and possible works.
These sorts of enquiries will usually come through a solicitor, however some leaseholders
will contact us themselves. These enquiries are known as pre-sale enquiries and we sell an
information pack to the current leaseholder (or their representative). Sometimes the
prospective purchaser (or their representative) will request this information, but unless Ealing
Homes has written permission from the current leaseholder, the Data Protection Act prevents us from
providing this information to prospective purchasers.
Any requests for a pre-sale enquiry must be made in writing and a charge is made for the
information that must be paid before this information is provided.
I was told that my service charge account was in credit when I sold my property. Why
can’t I get a refund?
Any credit or debit on a former owner’s account at the time of sale is transferred to the new owner’s account. Solicitors are notified of this in presale enquiry packs. If your account was in credit, you should ask your solicitor to claim this money back from the purchaser.
Why do I have to pay Service Charges?
As a leaseholder you have a responsibility to pay your share of the costs of the day-to-day running of your block of flats as set out in the lease. You share those costs with other leaseholders in your block and your landlord.
How do you work out my service charge?
We work out the service charge in line with the method set out in your lease, using the rateable
value of your home, block and estate. A rateable value is a unit of value given to a property which
was fixed by the Inland Revenue. Rateable values depend on a number of conditions but,
usually, the larger the property the larger the rateable value.
For the building that the flat is part of we divide the rateable value of your flat by the
total rateable value of your building. We then multiply the result by the total annual cost of
services and repairs to your building to get the charge for the flat.
The cost of services to tenants is not subsidised in any way by leaseholders.
I have received my estimated bill and there has been a high increase in my service charge. Why is this?
The service charge for 08/09 is based on our best estimate of what that service will cost over the next 12 months.
At the start of each service charge year - which runs from 1 April to 31 March - we prepare an estimate of the costs we expect to pay. This is calculated by using the latest available actual costs for the previous 3 years with an uplift for inflation. In the 2006/07 final accounts, charges were higher than anticipated due to repairs & maintenance costs and some blocks being affected by higher estate services charges. As the final costs for 06/07 are used as part of the estimating process, this has increased the amount quite substantially that some leaseholders will be required to pay in their estimate for 08/09. This will however ensure that there is not a large difference between estimated and actual costs as happened in 06/07.
I have received my estimate late, what should I do about April and May payments?
A letter was sent to all leaseholders to advise that the estimates would be late. Leaseholders were advised in that letter to continue to pay their monthly charge for 07/08.
If you have made a payment for April and May based on the 07/08 monthly payments then you will only be required to pay the difference between the April and May charge for 07/08 and 08/09 by 31st May 2008.
If you have not made any payments for April and May then you will be required to pay the two
months together by 31st May 2008.
What should I do about my standing order?
If you are paying your monthly service charge by standing order, you can either
Send in a cheque for April and May by 31st May 2008 and set up the standing order for the remaining 10 months, or
Set up your standing order so that the first standing order payment is for April and May which
is sent by 31st May 2008 followed by 10 monthly payments to be paid by the 15th day of each month.
As I have just received my estimate will I get an arrears letter at the end of the month?
As we have sent out the estimates late this year, we will not send you an arrears letter this month. You should have continued to pay the monthly service charge in April and May. We will allow you to the 31st May to make the service charge payments that relate to the difference between the current charge and the new charge for April & May.
What payment methods are available to Leaseholders?
Payment of service charges must be made by the 15th of each month as set out in the lease. A number of payment methods are available to leaseholders.
One annual payment You can pay your service charge for the year if you prefer. This payment will appear as a credit on your service charge account and will reduce as each monthly debit is applied to your account.
By standing order You can pay your service charge by standing order through your bank. A
standing order form is enclosed with your estimate. You should fill in, sign and send the form to
your bank with instructions that payment reaches your service-charge account by the 15th day of
each month.
Telephone Payment You can pay by debit card . Make sure you make a note of the reference
number that you will be given. This will be your receipt. You can use this service between 9am and
5pm, Monday to Friday and 6pm on Thursday.
By cheque Cheques should be made payable to ‘London Borough of Ealing’. Put your address and
service-charge account number on the back of the cheque. You should send your cheque to Home
Ownership Services.
By Payment Book You can pay using a payment book at any bank, post office or the Cashiers
office at Perceval House. If you require a new payment book, please contact Home Ownership
Services. Payment books are not sent out automatically.
Can I pay by Direct Debit?
Direct Debits are due to be introduced for leaseholders in June 2008. Please note that this will not be available to everyone in June 2008 but will be phased in.
What is a final account?
After the end of the financial year, we begin to calculate the actual cost of providing the services to each block for the previous financial year. By the end of September you will receive a letter detailing how much we spent on your block and estate, your individual charge and the difference between this sum and the estimated sum. If the actual sum of costs is more than the estimated sum of costs then we will send you an invoice. If the actual sum is less than the estimated sum of costs then we will refund the difference by crediting your day-to-day service charges account.
I was not the leaseholder for the period covered by the final accounts. Why am I being asked to pay for these charges?
Final accounts are issued to the leaseholder currently holding the lease at their time of publication and most solicitors dealing with lease assignments will insist on retention fees in lieu of unpublished accounts. You as the current leaseholder are responsible for these charges and should contact your solicitor about any retention held in respect of these charges.
If my service charge account is in credit, can I have a refund?
If your service charge account is in credit of more than £50 and there is no amounts due in respect of major works then a refund can be given. Contact Home Ownership Services to request a refund form.
How many times a year will I be billed for service charges?
You may receive bills up to two times a year for the day-to-day service charges - an estimated bill and an actual charge.
Why do I have to pay service charges when I do not believe I benefit?
Service charges are not payment for personal services provided to leaseholders. They are your contribution towards the landlord’s costs of managing and maintaining your block and your estate (if your block is located on an estate) and providing services to the block and estate. You made a legally enforceable commitment to pay service charges when you purchased the property (only the original RTB leaseholder signs the lease – the rest are successors in title that are bound to the terms of the lease on assignment). The method for charging service charges is set out in the lease. The lease says that the cost of providing a service must be shared out between all the flats in the building that are defined in the lease. The method of sharing the cost is done by using the rateable value of your property compared to the rest of the building. Your charge is a fixed percentage of the cost of services or maintenance to the rest of your building and estate (if this applies).
This means that even if you live on the ground floor you must pay a share of the cost of
providing the lift service to your building. This principle applies for all service charges.
Ground-floor flats share the cost of roof and lift repairs.
Middle-floor and upper-floor flats share the cost of repairs to the foundations.
The cost of repairs to a window frame (even if this is not a window frame in your flat) is
shared between all flats in the building.
People who do not use the main front entrance (that is, they use a side entrance) still pay
towards the cost of lighting the shared areas of the building that their flat is in.
There may be obvious costs, such as:
· carrying out repairs to the building or common parts and external areas
· supplying power eg for lights, lifts and communal heating systems
· providing caretaking, monitoring cctv cameras, staffing a concierge service
· maintaining communal grassed areas and beds around your block or on your estate
· providing heating and hot water from a communal system
There are other, more indirect costs that are essential to support the front-line services such as:
· Providing office accommodation and equipment (telephones, computers, desks etc)
· Providing staff to answer queries, inspect estates & works, raise orders for
works, monitor staff and contractors, pay bills, maintain records.
· Many indirect costs, including the costs of calculating, billing and collecting
service charges and answering leaseholders’ queries are covered by a management and administration
fee.
If I pay service charges, why do I have to pay major works bills as well?
Neither the Council nor Ealing Homes operate a sinking fund for major works that are rechargeable under the terms of the lease. Ealing Homes’ current practice is to invoice for major works separately to the day-to-day service charges. The charges made to your annual service charge account are for routine works and services that Ealing Homes provides to your building and estate (if this applies). There are also major works that take place on a cyclical or ad-hoc basis which involve higher expenses. Under the terms of your lease agreement, you are required to contribute to the expenses incurred by Ealing Homes in carrying out works and providing services to your building and estate (if this applies). Ealing homes is required to consult you about these types of works.
What if I believe I have not received a service?
If there is an item on your service charge account that you have not received, you should contact Home Ownership who will investigate the matter. If the service in question has been temporarily stopped, your account will be credited for the period when the particular service was not provided. This will only happen when the final account adjustments are carried out. We normally make final account adjustments in the autumn after the end of each financial year.
I never see my caretaker and I’m not satisfied with the caretaking service.
These are really 2 different issues, but they are often combined.
Although you may not often see your caretaker it does not necessarily mean that you are not
receiving a service. You may be at work or somewhere else when the caretaker visits, or the
caretaker may be on another part of the estate when you are at home.
The service should be judged against the tasks to be carried out and the time
available. Caretakers’ schedules should be displayed at your block or estate. They will
show the day(s) and times that they will normally be working there. However, these times include
travel, so caretakers will not be at your block for the full period shown on the schedule if they
have to travel from another estate. Sometimes caretakers’ schedules have to be altered at
short notice to deal with day to day problems, such as staff shortages or emergencies on your own
or another estate.
Leaseholders’ charges are based on the caretakers’ scheduled hours. If the caretaker only
visits a couple of times a week it is possible that between visits the communal areas will be
littered or problems will occur.
Why are service charges estimated?
This is because although we have an idea of the amount we will spend on your block and estate for the forthcoming year, we cannot be certain. With repairs for example, we may have an idea of the average amount spent on repairs to your block, but some years there may be fewer repairs required than budgeted for whilst in other years more may be required. The terms of your lease and the Landlord and Tenant Act 1985 (as amended) provide for service charges to be paid in advance. You are required to pay your service charge on an estimate and an adjustment is made to your account when the actual costs are known.
What is covered by the building insurance?
A summary of your cover is contained within the insurance booklet and insurance schedule that was sent to you in May 2006. For further information on specific risks you should contact the Home Ownership Officer (Mortgages & Insurance) on 020 8825 6108.
Am I subsidising other leaseholders by paying more building insurance for a similar sized property?
No, the Council informs the insurer of the specific sum your property is insured for. Your premium is calculated based solely on this figure. Other properties do not bear any influence on your insurance premium.
Why do I have to pay for a buildings insurance certificate?
Ealing Homes provides each leaseholder (from 2005) with a free copy of the buildings insurance schedule free of charge. There is a charge made for further copies of this schedule to cover administration costs.
How is the sum insured determined?
Your property (and any communal areas) was valued for rebuilding costs when the property was originally sold under the Right to Buy (RTB). This amount increases once yearly in line with the buildings indices. Please note that the amount may also be increased on request from a leaseholder or their mortgage lender.
Why is my premium higher than my neighbours? We have exactly the same size flat in the same block?
This may be for a number of reasons such as:· The amount may have been previously amended by the current or former leaseholder and/or their mortgage lender.· The amount of the initial valuation may have differed because it was valued at a different time or by a different valuer.
Why is vandalism not covered?
Vandalism is covered if it is to an insured risk as detailed in the insurance policy booklet, however the current policy has an excess of £50 per property per claim. Therefore if a claim for communal damage is made, a leaseholder’s individual contribution to the cost of repair must be over £50 before a claim can be made.
Do I need permission to sublet my property?
Under the terms of the lease you are required to inform us that you have let your property within 21 days of doing so and pay any associated administration fees. The terms of your buildings insurance policy also state that you should notify us to ensure you are fully covered. When notifying us you should provide your contact details. This will allow us to keep you informed of important information regarding your property. There is a one-off fee for registering this information which is currently £30. Please note that you will remain responsible for payment of service charges and for the actions of your tenant for the duration of the tenancy. If your tenant breaches the terms of your lease you will be held liable.
