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| Collection of Service Charge |
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All owners / residents are obliged to pay their service charge strictly in accordance with the terms of the lease that they have purchased. This could either be annually, half yearly or quarterly, but can, where residents have all agreed, be paid monthly by standing order or direct debit. The collection of this service charge is paid into an independent bank account, in the name of the management company and then is utilised to carryout the work required to keep the communal areas up to a standard that the owners would expect. At the end of any accounting year, reserves can be paid into a sinking fund, or in some cases, reduce the demand for the following accounting year. Upon the legal completion of the purchase of the new property, in the terms of your lease you are required to contribute to the upkeep of the estate / development and as a resident, you will be required, under the terms of your lease, to pay your service charge, as and when demanded, in full compliance of the lease that you have signed. With the monies collected, these are utilised to maintain the communal areas and it is essential that all lessees pay their fees, as and when demanded, to ensure that suitable funds are available for expenses, such as insurance and works on the development, otherwise the area can fall into disrepair. If lessees do not pay their monies on time and arrears accrue, this can cause further problems with paying bills and also carrying out repairs, so it is essential that these are paid, to assist the management company. Obviously if the resident / lessee is unhappy with the charges and do not believe them to be fair and reasonable and if a dispute cannot be resolved, the matter can be put before a Leasehold Valuation Tribunal. This body objectively assesses the validity of the charges and they will then make a decision that will bind both parties. |