Annual Service
Charge Estimate
This leaflet explains how service
charges are worked out and what you
are responsible for as a leaseholder.
Estimated and actual service charges
Service charges represent a share of our costs of providing and
maintaining services to your block and communal areas. You are
required to contribute towards these costs under the terms of
your lease.
The financial year runs from 1st April to 31st March the following
year. After the start of the financial year we have to send you a
reasonable estimate of the amount we expect the service charges
to be. A demand for these charges is included in this mailing. You
should pay these estimated charges by four equal instalments
in advance on 24th June, 29th September, 25th December and
25th March.
However, we offer extended monthly instalments for leaseholders
using Direct Debit as their method of payment and accept
12 monthly payments from April to March.
www.mhs.org.uk
1.
What my service charges cover
Grounds maintenance
The communal services you receive vary
according to where you live and the type of
property you own. The services that apply to
your home are shown on the breakdown sent
with this mailing. A list of the services that
can be provided by mhs homes is detailed
on the following pages, together with an
explanation of how we calculate the costs.
This charge is for maintaining communal
land including flowerbeds and grassed
areas. It includes a charge for the
maintenance of shrubs, and tree inspections
every three years.
Communal window cleaning
The charge is for monthly cleaning of
communal windows in the block. This service
is provided by an external contractor and the
details can be found on the notice boards in
your block.
Your neighbourhood officers and environmental
managers monitor the standard of cleaning
and the grounds maintenance and carry
out regular estate inspections to resolve
any issues raised by the residents.
Communal lighting
How we make our calculations
All calculations have been based on the
cost of providing the service to your block
and communal areas except where stated
below. In order to calculate the estimated
block and/or service cost we look at the
previous estimated bills and final accounts
and we adjust for inflation. We then apply
the percentage as stated in your lease to the
total block or service cost.
Services provided
Caretaking
This charge is for the cleaning and upkeep of
external and internal communal areas such
as corridors, lifts, walkways and bin/shed
enclosures. It also includes litter picking from
paths, grass and drying areas, fly tipping,
twice yearly bin cleaning and reporting
communal repairs.
www.mhs.org.uk
This charge covers the maintenance of lamp
columns and replacement of light bulbs on
your block and communal areas. It includes
the cost of electricity supplied to all the
lighting, including entrance halls, balconies,
stairwells and on the estate grounds. It also
includes the cost of electricity supplied to
any equipment in the communal areas such
as door entry systems, water pumps and
smoke alarms. The timers will be changed
twice a year in Spring and Autumn to ensure
hallway lighting is adequate to coincide with
seasonal changes.
Door entry system
Where provided, the door entryphone
charge covers the cost of its repair and
maintenance as well as the cost of the
telephone line.
Communal Repairs
We sometimes have to make repairs to the
structure as well as external and communal
2.
parts of a building. This charge will also include
maintenance to any water tanks provided in
the block and pest control measures taken
in the block.
TV aerials
This charge relates to the cost of provision of
a communal television aerial to your block.
single insurer. You should take out separate
cover for your contents and personal
belongings.
Ground rent
If applicaple, you are required to pay a set
annual fee of £10 (in most cases) for renting
the ground from mhs homes. This is set out
in your lease. We are required by law to send
you a separate demand.
Annual audit fee
Management company charges
In some buildings and estates, the services
are provided by a management company.
The management company sends invoices
directly to mhs homes for the service
charges with any other obligations under
the Head Lease or Transfer (for example,
ground rent). We then pass on the
charges to you.
Lifts
We look after your lifts, if applicable, making
sure they are in good repair. We use a
contracted company to maintain the lifts
and pay them a fixed amount each year.
Lift costs are made up of annual planned
and preventative maintenance measures,
reactive repairs, electricity and lift monitoring
(phones/alarms) and lift inspection costs.
Building insurance
Under the terms of your lease, we have to
insure the building against a range of risks.
The most cost effective way to do this is for
us to arrange cover for all properties with a
www.mhs.org.uk
Each year the final accounts are reviewed
and certified by independent auditors. This is
to ensure that the service charge statement
represents a fair summary of the income and
expenditure and is sufficiently supported by
accounts, receipts and other documents and
has been prepared in accordance with section
21(4) of the Landlord and Tenant Act 1985.
Management fee
We charge you a fee for administering your
service charge account. This fee covers costs
over and above those already explained,
including:
• Staffing and office costs of the parts of the
leasehold services that deal with service
charges
• The calculation, billing and collection of
service charges
• Providing information about your service
charge account and general information
on all aspects of home ownership
• The administrative and IT cost of calculating
and sending you invoices, statements and
accounting for payments made.
Reserve/sinking funds
We run three types of funds for lift
replacement, roof replacement and
maintenance. The estimates are based
on the asset management’s schedule of
planned works.
3.
How to get involved
By post
The Leasehold Services team run the Home
Ownership Forum.
Make cheques payable to mhs homes and
send to Broadside, Leviathan Way, Chatham,
Kent, ME4 4LL quoting your reference
number and address on the reverse of the
cheque. Please note we do not issue receipts.
Please call 01634 565333 for further
information.
Home or telephone banking
Please quote your reference number. Our
bank sort code is 60-05-09 and our bank
account number is 55357415.
PayPoint/Post Office (Allpay card
required)
Cash payments can be made anywhere you
see the Pay Point sign. Please take your
payment card with you. If you need a new
card, please call us on 01634 565333.
In person
How to Pay Your Service Charges
Visit mhs express at 115 High Street, Chatham,
ME4 4DH,
Open Mon-Fri 8:30am – 5:00pm, Saturday
8:30am – 2:00pm to pay by cheque only.
Direct Debit
Mincom
Please contact us on 01634 565333 or visit
www.mhs.org.uk if you prefer to pay by
Direct Debit. You will be offered the option
to pay over 12 monthly instalments starting
in April.
We offer a text phone service for customers
with speech or hearing difficulties. If you
have a text phone, call 01634 301330.
Payments 24 hours, 7 days a week by
Debit and Credit Card
Pay online using your online account at
www.mhs.org.uk.
Payment line
Services charged for but not provided
If we have charged you for a service on
your account that you do not receive,
please write to us at Leasehold Services
mhs homes limited Broadside, Leviathan
Way, Chatham, Kent, ME4 4LL or email:
homeownership@mhs.org.uk.
To make payments call 01634 565333 and
select Option 1.
Payments can be made with one of the
following types of Credit/Debit cards:
Visa, Mastercard, Switch, Solo, Visa, Delta.
www.mhs.org.uk
4.