Service charges and ground rent for leaseholders

Ground rent:

Ground rent is specified in your lease and is a rental paid to us every year. You will receive a separate invoice for your ground rent.

Service charges:

A service charge is a payment you make towards the costs of providing and maintaining services for the block you live in. Service charges are payable by all leaseholders annually.

You must pay your share of the costs of managing and maintaining your block. This is a legal duty set out in your lease. If you do not pay your share, you are breaking your lease agreement and we could apply to the First Tier Tribunal and/or to the courts for payment. In these circumstances, you could lose your home. We may also forward any arrears to a collection agency.

Service charges are a key consideration in taking on a lease and are part and parcel of becoming a leaseholder.

We will always be fair about service charges. We will explain how they are calculated, and you can challenge any charges you do not agree with. If you have financial problems, we may be able to make other arrangements to help you pay your service charges.

The service charge will vary depending on where you live and covers services such as:

  • day-to-day and emergency repairs to the block
  • cleaning
  • buildings insurance
  • paths and access
  • roof repairs or re-roofing
  • structural repairs
  • lifts
  • door entry systems
  • electrical re-wiring of shared areas
  • grounds maintenance
  • management fee
  • TV aerial

You can view our Insurance summary of cover for leasehold properties (from 01 April 2021 to 31 March 2022) below:

Leasehold-properties-summary-of-cover-[pdf]-198KB

What do my service charges mean and what do they cover?

Maintenance items:

These are repairs to your block that have been reported to us. They may not have been reported by you, it could be by your neighbours, visitors to the block, or our staff.

The amount you pay is a part of the full cost depending on how many properties are in your block. For example, if there are four flats in the block, the cost is divided by four.

Digital TV, Cable TV, and satellite dishes:

This is the aerial to the block to receive a TV signal. If you have a Sky dish you still have to pay this charge.

If you did not have this service you would not be able to receive any television channels.

Communal lighting:

This covers all external and internal lighting to communal areas.

Lifts:

If your block has a lift you will pay this charge, even if you live on the ground floor.

Grounds maintenance:

This includes grass cutting and maintenance of shrubs and hedges for the whole of your estate and the borough.

If you choose to cut the grass or maintain any shrub/flower beds on communal land then this is appreciated, however the charge still applies as the service still exists.

This service is only for land that belongs to us. If you know of an area that isn’t being maintained, please email bh_neighbourhoodservices@boltonathome.org.uk.

Laundry facilities:

If you have access to a laundry you will pay this charge, even if you choose not to use this facility.

Community centre:

If you have access to a community centre you will pay this charge, even if you do not choose to use this facility.

Fire extinguisher:

If there are communal fire extinguishers in your block you will pay this charge.

Door entry/security door:

If to access the block you need a fob or your visitors have to ‘buzz’ you in, this charge will apply.

Caretaking service:

All blocks with communal areas receive a cleaning service. This includes sweeping and mopping of:

  • Entrance areas
  • Stairs
  • Lifts
  • Landings
  • Paths within the boundary of the flats
  • Communal windows front and rear entry

If you choose you keep your communal area clean and tidy, this is appreciated. However, this charge still applies as the service still exists.

Concierge service:

If visitors to your block have to contact concierge for access, this charge applies.

Warden service/Intercom link to warden:

If you have a warden service these charges will apply.

Management charge (15%):

This is a percentage of your charges and includes:

  • Preparing and distributing service charge budgets/estimates.
  • Collecting service charges.
  • Providing management information to residents.
  • Periodic health and safety checks
  • Keeping records of residents and tenancy details.
  • Preparing specifications for minor works and services.

Buildings insurance:

Buildings insurance covers the cost of repairs to the fabric of your building (that’s the bricks, roof, windows etc.) in the event of damage.

We are responsible for the building insurance for our blocks. As per your lease you will pay a contribution to this.

Contents Insurance is the responsibility of the resident.

Further information:

Please note payment of service charges is a condition of your lease.

Making sure you get a good service

Remember that the cost of repairs will normally be shared between you, Bolton at Home, and other leaseholders in your block.

If a job is not done properly, please let us know by contacting us. You can tap here to see our main contact details.

What if I'm finding it hard to pay?

If you're struggling to pay your service charges or ground rent, please contact us straight away. Our Money Advice Team can help you to:

  • Find the right payment method.
  • Set up affordable repayment plans to pay arrears.
  • Check you are claiming all the benefits you are entitled to (even if you're working).
  • Reduce your other household bills.
  • Manage your finances and deal with any debts you may have.
  • Support you back into training or employment.

You can tap here to learn more about our Money Advice Team and see contact details.

What will happen if I don't pay?

If you don’t pay your service charges or ground rent, we will contact you to ask why. If non-payment continues we can consider the following options:

  • Referral to a Collection Agency
  • Contacting your Mortgage Lender
  • First Tier Tribunal (Property Chamber)
  • Losing your home by forfeiture or repossession
  • Alternative Dispute Resolution (ADR) including Mediation & Arbitration

For further information on service charges for leaseholders, please visit www.lease-advice.org (link opens in a new tab).