General information about your service charge estimate for the next financial year which runs from the 1 April to the following 31 March. If you need any further information you may like to visit: Leaseholders or view the Homeowners’ Handbook
What is the service charge?
Your annual service charge is your share of the cost of works or services carried out to your block or estate by the council, your landlord. Your block and estate are defined in your lease or transfer deed. Generally, a block is the building your property is in, but some blocks are defined as 2 or 3 separate buildings. Service charges are shared between all properties within a block or estate, including council tenants, who contribute through the rent they pay. As landlord, the council is responsible for maintaining the structure of the entire building and communal areas such as halls and stairways. The services you receive, and their costs will vary depending on where you live.
What is an ‘estimate’ and why do I receive one?
At the beginning of each financial year, you will be sent an estimated service charge bill, which is a calculation of what your landlord expects to spend on services to your block and/or estate during the year. The bill is a prediction, not the actual cost, because we cannot be certain in advance of the exact amount that will be spent. For example, the number and type of repairs carried out are likely to differ each year.
In September each year you will receive your final account for the previous financial year. If the actual costs are lower than estimated, then money will be credited to your account. If the actual costs are higher than estimated, then you will be asked to pay the difference. This is called your ‘final account adjustment’.
Our aim is for the estimated costs to match the actual service charge as closely as possible. We do this by analysing spending for previous years and adjusting this for inflation, and by working closely with the contractors that provide your services. This helps you to budget effectively and also helps your landlord to recover the correct funds and plan future spending.
How is my property’s share of the costs calculated?
Your property is charged a percentage of the costs to your block as defined in your lease. The percentage is based on the gross value of your property divided by the total gross values of all properties in the block.
The gross value is a benchmark system allocated by the HM Revenue and Customs to compare properties for the purpose of collecting taxes.
What is the management fee for and how much do I pay?
The management fee is to cover the centralised costs of providing a leasehold management service, including staff salaries, materials and overheads.
The fee is calculated by dividing the total running costs by all leaseholders and will vary slightly from year to year. However, there is also a reduced fee of £50 for properties that have block costs totalling less than £50. As you may find your block costs change each year, so you may also find that your management fee changes from £50 to the full fee, or vice versa.
Understanding your service charge estimate summary
The service charge estimate summary (typically found on page 3 of your letter) shows the estimated service charge due for your block and individual property. Here is an example of an estimate summary
Pay your service charge
You have the option of paying the full amount in one 'lump' sum in April or spreading the costs over the year in 12 monthly instalments at no extra charge. Monthly instalments should reach us by the 15th day of each month which is a requirement of your lease or transfer deed.
- Direct Debit
- if you already pay by Direct Debit, you do not need to do anything
- if you do not have a Direct Debit and would like to pay by this method, please telephone home ownership services on 020 8825 9998 to set this up
- standing order - payments should be made on the 10th of the month and set up using our bank details. Standing orders can be set up electronically if you have internet banking. If you require a standing order form, please access the My Account portal to download a standing order form or call home ownership services on 020 8825 9998. If you already pay your monthly service charge by standing order, then you will need to amend it to reflect your new monthly payment
- online payments
- telephone payments - you can call our secure payments line on 020 8825 8346 24-hours-a- day, 7 days a week. Please have your debit or credit card details and your service charge account number ready
- internet - contact your bank or access your account via the internet and arrange to make a payment. You will need to provide our bank details which are:
- bank name Lloyds Bank PLC
- account name: London Borough of Ealing
- account number: 02390175
- account sort code: 30-00-00
- reference number: your six-digit service charge account number
- Please note: Your bank may not be able to match the name on the account and the account details, as it is a head office collection. Please check that the sort code and account number are correct, and your bank should allow you to proceed with the payment.
If you do not pay your service charges on time you are deemed to have broken the conditions of your lease and you could lose your property if the lease is forfeited.
Difficulty paying service charges
If you have difficulty paying, you should contact home ownership services straight away on 020 8825 9998. The service charge team can offer payment advice and discuss payment arrangements to allow you to spread the costs over a period.
You can also contact Job Centre Plus for advice and help to apply for benefits you may be entitled to:
- under 60 years of age: 0800 328 5644
- www.gov.uk/universal-credit
- over 60 years of age: 0800 99 1234
The monthly service charge only provides for services and minor day-to-day repairs. However, if you are in receipt of Universal Credit, Income Support or Job Seeker’s Allowance you should inform Job Centre Plus of the service charges you are required to pay, as they may be able to increase your allowance. You will need to provide a copy of each bill you receive including your estimated service charge, your final account, and details of any proposed works. You must inform Job Centre Plus of any changes to your service charge within 4 weeks of receipt of the invoice.
For free independent and confidential debt advice and to discuss the options that may be available to you, please call National Debt line on 0808 808 4000.
What should I do if I am disputing my service charge?
You should continue to pay your service charge even if you dispute it. A First Tier Tribunal (FTT) can decide if the charge is reasonable, and if it is not reasonable, can make the council refund the money you have paid.
If you do not agree with your service charge or want to challenge the cost of a service, please access the My Account on-line portal (www.ealing.gov.uk) to submit a query or call home ownership services on 020 8825 9998. If we cannot resolve the problem to your satisfaction, you should follow the Ealing Council Complaints Procedure.
If the complaints procedure does not resolve the issue to your satisfaction, you can apply to the FTT who will make a decision. Please be aware that the FTT charge an application and a hearing fee and if you have legal representation, you will also need to pay for their fees
Does the monthly service charge include major works?
If we intend to carry out works to your building and your contribution is expected to exceed £250, we will carry out a separate consultation exercise with you. This gives you an opportunity to comment on a specific set of works and to influence the direction the council takes.
You will also be given an estimate of the expected costs of the works during the consultation exercise. If we do carry out major works to your building, we will send you a separate bill on practical completion, as this is the earliest point we can calculate what your actual contribution is. This allows us to give you access to a wider range of payment options than would otherwise be the case. It also means we only recharge you on the actual costs incurred.
Is ground rent included in my estimate?
Ground rent is an annual charge that you may pay as a condition of your lease. The charge is made because you do not own the freehold of the land. If your ground rent is due on 1 April, it will be included in your service charge estimate. Otherwise, you will receive a separate invoice for this.