Help & Support

• Fixed Service Charge: This charge is fixed at the start of the year, based on an estimate of the service cost. If the actual cost of the service at the end of the year is higher or lower than the estimate, the charge cannot be changed. If we have underestimated the charge, we won’t recover the shortfall from you. If we have over-estimated the cost, you won’t be entitled to a credit.
• Variable Service Charge: This charge can vary and is set at the start of the year, based on an estimate of the service cost. Unlike a fixed service charge, if the cost of the service is higher or lower than the estimate, a credit or debit balancing charge will we applied at year end to ensure that customers pay the true cost of the service.

At the end of the financial year (end of March), a comparison is made between the actual cost of delivering services and the estimated cost charged. Where the actual cost is higher than the estimate, there’s an additional charge to you. Where the actual cost is lower than the estimate, we’ll credit money to your service charge account. In September each year, leaseholders, freeholders and shared owners are sent confirmation to advise what has been spent in the previous financial year. The letter will confirm if a credit or a debit balance has been applied your account. 

Building insurance
We insure all homes that we own, or part own. So, this covers all our rented homes, anyone within a shared ownership home and leaseholders who own 100% of their home within a block of flats that we are the freeholder for.
In some instances, we’ll insure your house even if you have ‘staircased’ to 100% owner, so you may want to check your transfer document to see if it’s required.
We operate a ‘block’ insurance policy for all our leasehold homes. The cost you pay for insurance within your service charge reflects your share of the building insurance premium. This premium is based on the estimated cost should we need to rebuild your home. 

Ground rent
Ground Rents are charged in line with the terms of your lease. The annual figure payable is applied as a service charge split monthly or quarterly depending on the charging frequency for your account. Ground Rent notices are served in line with relevant legislation.
Every year, we’ll send you a ground rent demand - this is a legal requirement. You don’t have to make a one-off payment for your ground rent as we charge this monthly within your service charges.

Management fee
The general management charge is a contribution towards general housing management and advice covering the area you live that we own. For example, confirming your boundaries, anti-social behaviour, subletting, permissions and improvements guidance, resale and assignment of lease requirements, procedures and insurance advice, and insurance claims information. It also covers the management and administration of sinking funds, legal fees, and annual audit fees. The cost is calculated based on business running costs, overheads and by type of property.

Reserves / sinking fund
We’ll collect sums towards a reserve/sinking fund for all shared ownership and leasehold properties where there are common parts that require long term major repairs or replacement or cyclical maintenance, where the lease allows. Some examples for what this would be used for are new roofs, decoration, and replacement windows. This may also apply to schemes of houses where there is a car park. The funds will be held in a separate bank account and the interest after tax is credited directly to the respective accounts.
The amount of the charge to be collected will be based on life cycle costings for each major element of the building/area. Each year the sinking fund will be increased by an appropriate inflationary factor. As part of the annual review, consideration should be given to the balance on the reserve/sinking regarding any works being proposed in the next financial year, to confirm that there are sufficient monies being held to pay for the works.
A full review of life cycle costings and scheme cash flow should be undertaken at regular intervals, somewhere between 5-10 years.   

Service charge admin
The charge is a contribution towards the costs incurred by us to manage the service contracts and the associated accounting functions of service charges. It’s either 10 or 15 per cent (dependant on your lease or tenancy agreement) of your total service charges, excluding buildings insurance, sinking funds, personal utilities, and management charges.

Third party managing agent
If there’s a third-party managing agent managing a block, scheme, or estate then the costs are passed on through service charges. Every year when we complete the accounting of actual charges, we must include all invoices received in the accounting period. This can sometimes mean that there are credits or debits applied through the accounting due to the dates of the invoices, regardless of the period they cover.

Caretaking
The cost of a caretaking service is calculated using an individual’s salary and the amount of time they’re allotted for a specific block, scheme, or estate.

CCTV
This cost covers the servicing and maintenance of any CCTV system in operation in your block/scheme/estate. All other CCTV related charges will be charged through the repairs service charge, this could be general repairs, or CCTV downloads. It may be that the costs associated with CCTV downloads are passed on to individual perpetrators if identified.

Cleaning
We visit each block to measure and cost the communal features that exist on site, in our hallways, stairwells and bin areas. Generally, we use square metres, linear metres and number or quantity. We include entrance, entrance mat, entrance door, floor area and type, internal doors, handrails, balustrades, windowsills, light fittings, and lifts.
We use the National Housing Federation (NHF) methodology to calculate service charges. There is a Schedule of Rate (SOR), for each cleaning task we carry out. Each SOR has a value (£), a Unit of Measurement (UoM) and a Frequency of Visit (weekly or 3-weekly). We then multiply SOR x UoM x Frequency, to calculate the total cost for each block, based on all the features that need cleaning. The total cost is then split between all owners within a block.
We have some external contractors managing our blocks/schemes and the costs, VAT and 8.5% uplift to cover our overheads for managing the contractors, are passed on through the service charges.

Communal electric
This relates to the electricity supplied to communal areas of blocks and schemes (may also include external usage such as carpark lights) and is split between the applicable number of homes that benefit. The charge is calculated based on all bills received in the period being accounted, regardless of the period of the actual bill. The bills can be based on estimates or actual meter readings. In some instances when actual meter readings are supplied this can cause an increase in the expenditure for the year.

Door entry
This cost covers the maintenance of door entry phone/call systems and, where appropriate, any automatic door opening systems. Any repairs required from these checks will then be charged through the repairs service charges.

Fire and security
This cost covers the service and maintenance of fire and smoke detection equipment in a block. The equipment may include automatic opening vents for smoke clearance, fire alarms, communal smoke detectors, emergency lighting and fire extinguishers. Any repairs required from these checks will then be charged through the repairs service charges.

Legionella water testing
This is the cost incurred to carry out legionella testing on a communal water storage facility where there is only one supply to the building. A Legionella risk assessment will be carried out to determine the frequency of the tests. We use the National Housing Federation (NHF) methodology to calculate charges. There is a Schedule of Rate (SOR) for the testing which we use to apply the charges through service charges.

Lift maintenance
This is the cost that covers the lift maintenance, servicing contract and any call out repairs to the lift not covered by the contract. There will also be an insurance premium that specifically covers any lifts and engineering inspection charge included in this cost. Any repairs required from these checks will then be charged through the repairs service charges.

Repairs
This item covers the cost of all repairs to communal parts of your block (both internal and
external) and/or estate. It covers routine, urgent and emergency repairs. In addition to this any ad hoc charge is also charged through the repairs service charge, as an example this may include specialist cleans, bulk rubbish and CCTV downloads, although this list is not exhausted.
For repairs and most ad hoc work completed by us, we use the National Housing Federation (NHF) methodology to calculate charges.  There is a Schedule of Rate (SOR), for each repair we carry out. The total cost is then apportioned (split) between all owners within a scheme, block, and estate, which includes both VIVID properties and private properties. For repairs completed by contractors we pass on the cost of the repair, VAT and an 8.5% uplift to cover our overheads for managing the contractors.

Water Charges
Communal: The cost of any external water supply that benefits all residents of your block/estate, such as an outside tap for the garden, or water for the cleaning of communal areas.
Personal: Some developments only have one water supply.  In this case, the water charges will be divided between communal use and personal use initially and then split across the number of properties that benefit from the supply.  The way this is divided may vary based on the size of the property.  This charge is not eligible for housing benefit.  

Water Pump
This charge is for the servicing and maintenance of a pump to supply water and/or remove wastewater from a scheme to the mains drainage.

Communal window cleaning
We sub-contract the communal window cleaning to a specialist, approved contractor, as part of a competitive tendering process. The contract we award, is based on a 3-year contract, with options to extend for a further 2 years, before we then re-tender.
The contractor visits each block to cost the communal features that exist on site, in our hallways, stairwells and bin areas.
Generally, we use a cost per communal feature or floor. We include communal glazed entrance doors, communal glazed entrance canopies / porches, communal hallway glazing, communal stairwell glazing, communal glazed stairwell balustrades / panels, communal balcony canopies, communal glazed balcony balustrades /panels, communal conservatories, communal bike sheds, communal Automatic Opening Vents (AOV’s), communal Photo Voltaic panels (PV’s) and communal bin area glazing.
The frequency of visit is 3-monthly (quarterly) for all communal features, except balcony canopies, which are 6-monthly (twice per year). The total cost for each block, based on all the features that need cleaning, is split between the total number of homes in each block.

Grounds maintenance
We digitally map, measure and cost the communal features that exist on site, in our schemes, blocks and streets. Generally, we use square metres, linear metres and number or quantity. We include grassed areas, shrub beds, hedges, and hard landscaping (paths, car parks and drying areas).
We use the National Housing Federation’s (NHF) methodology to calculate service charges. There is a Schedule of Rate (SOR), for each ground maintenance task we carry out. Each SOR has a value (£), a Unit of Measurement (UoM) and a Frequency of Visit (19 or 26). We then multiply SOR x UoM x Frequency, to calculate the total cost for each scheme, block, or street, based on all the features that need maintaining.
The total cost is then split between all owners within a scheme, block, and street, which includes both our properties and private properties. We do have some external contractors managing our schemes/estates and the costs, VAT and 8.5% uplift to cover our overheads for managing the contractors are passed on through the service charges.

Playground
If your scheme or estate has a playground, that is available to all the residents, then the cost of the upkeep of this area is separate to the grounds maintenance charge and will be appear separately in the breakdown of service charges. The play areas are inspected by a specialist contractor to include weekly visual checks and monthly operational checks and then independent of this there is also an annual health and safety check.