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Service charges for homeowners
What's included in your service charges.
We’re responsible for maintaining our buildings and looking after the shared areas in and around our blocks. Residents (including leaseholders and freeholders) contribute to the cost of this through the service charge payment.
These services depend on where you live, but may include:
- cleaning and maintaining the communal areas
- communal areas: lighting, water and heating where applicable
- caretaking and security
- repairs and improvements
- lift maintenance
- maintaining door and gate entry systems
Your service charge also includes a management charge - your share of the costs of providing the service to homeowners - and building insurance.
Service charges are separate from any ground rent you pay. The amount you are eligible to pay is set out in your lease and is based on the size of your property and services provided to you and your estate.
We do not make a profit on service charges and do all we can to ensure that the charges are reasonable.
How are service charges collected?
You receive two service charge bills each year:
- At the start of each financial year we send you your estimate of the cost we expect to incur in the coming year. This is based on the actual costs of services provided in the previous year, plus adjustment for any changes in contract costs, service provision and expected inflation.
- At the end of the financial year, we send you your actual bill for the costs we incurred. If the actual bill is higher than the estimate, you will be asked to pay the difference. If the estimate was higher, we will give you the difference, or use the money to clear any arrears you may have.
Keeping you informed
We ensure that you get plenty of notice of likely bills. If we plan to spend over £250 on a single repair on the estate we will write to you before it is carried out.
If any service contract will cost you £100 a year or more, we will write and let you know. You must pay both the estimate and the actual bills.
The actual bill must be paid as a lump sum whereas the estimate can either be paid as a lump sum or in 12 monthly instalments.
Paying your service charge
Find out about the various ways to pay to pay rent.
If you do not pay you are in breach of your lease and could lose your home.
Challenging your service charge
If you spot an issue with your bill, please contact Peabody Direct. With every demand, we provide a document called 'Your Rights and Responsibility'. This document sets out additional options for challenging your bill.