Leasehold Debt Recovery Policy

Service charges are calculated annually (in arrears) at the end of the financial year, based on the actual costs incurred in the year to which they relate. All leaseholders are required to pay a contribution to the cost of maintaining the fabric and any common parts of the building as described in the Landlord and Tenant Act 1985 paragraphs 16a, 16b, 16c, 16d, and 18 of Schedule 6 to the Housing Act 1985.

The charge includes buildings insurance, ground rent, the management fee, costs of communal gas/electricity usage, the contribution towards communal repairs, and major works if applicable. Charges are calculated in accordance with the terms of the lease agreement and relevant leasehold legislation.

Housing Management aims to keep arrears of Leaseholder Service Charges (LSC) at the lowest possible level, in order to maximise income to the Housing Revenue Account (HRA) and to demonstrate good financial management.

Our policy on the recovery of LSC debt will balance recovery with the provision of information, offer all relevant support and advice to leaseholders enabling them to understand their responsibilities, sources of information and support and possible entitlement to benefits. However, where debts do arise, we will take prompt recovery action in line with this policy.