Overview of service charge calculations

by The Gateshead Housing Company & filed under Owning your home, Owning your home - leaseholder - leasehold handbook, Owning your home - leaseholders.

Your actual service charge may include some, or all, of these items on your invoice, depending on the services you receive.

 

Service

 

What the service covers How your block cost is calculated How your individual charge is calculated
Buildings insurance Insuring the building for the full reinstatement value. The insurance is tendered and procured by Gateshead Council to cover the full reinstatement value of your flat. The insurance premium is based on the current cost of rebuilding your property multiplied by the rate per £1,000 plus Insurance premium tax (IPT) of 12%. For example, if your home is insured for £94,000, the premium would be 94x£1.30 = £122.20 plus IPT = £136.86.
CCTV Security of the block. We identify the cost of servicing and repairing CCTV equipment within the financial year. The block cost is divided by the number of units in the block. For example, 4 units in the block, each property pays ¼ of the costs.
Caretaking (multi-storey blocks) Caretaking of the internal communal areas. Examples include cleaning communal areas, stairs and corridors, bin chambers, rubbish chutes and lifts. Also minor repairs and touching up painting as well as general management of the block. We identify the cost of providing the caretaking services, including caretaker salaries, equipment and materials, protective clothing and paint supplies. The block cost is divided by the number of units in the block. For example, 4 units in the block, each property pays ¼ of the costs.
Cleaning (mid- and low-rise blocks) Cleaning of the internal communal areas, stairs and corridors, handrails and window ledges, entry door (front and back), entry panels, floors.

 

 

TGHC pays Gateshead Council for cleaning services through a service agreement. The block cost is divided by the number of units in the block. For example, 4 units in the block, each property pays ¼ of the costs.
Communal heating Providing and managing the fuel supply for communal heating and/or hot water systems. We identify the cost of gas to provide heating and hot water to your home, by reviewing the gas bills invoiced by the energy provider. The block cost is divided by the number of units in the block. For example. 4 units in the block, each property pays ¼ of the costs.
Communal lighting Providing and managing the communal electricity supply for communal lighting, lifts, door entry systems, heating systems and water pumps.  This does not include the cost of replacing bulbs or tubes, resetting timers or other repairs. We review the electricity bills provided by the electricity suppliers to identify the actual costs incurred within the financial year. The block cost is divided by the number of units in the block. For example, 4 units in the block, each property pays ¼ of the costs.
Concierge service Block security Leaseholders receiving this service pay a capped charge, in line with contributions from tenants.

 

The block cost is divided by the number of units in the block. For example, 4 units in the block, each property pays ¼ of the costs.
Door entry Repair and maintenance of communal door entry systems. This does not include faults with handsets within your home, which you must pay for. We identify the cost of annual servicing, repairs and callouts during the financial year. The block cost is divided by the number of units in the block. For example, 4 units in the block, each property pays ¼ of the costs.
Grounds maintenance service Grass cutting around your property or block. TGHC pays Gateshead Council for this service under a service agreement. Each property in the block pays a contribution based the sqm of land to be cut.
Lift maintenance Repair and maintenance of lifts. We identify the cost incurred for providing repairs, and servicing and insuring the lifts within your block during the financial year. The block cost is divided by the number of units in the block. For example, 4 units in the block, each property pays ¼ of the costs.
Management fee Services provided for leaseholders only. Examples include service charge accounting and audit, calculating and billing service charges, debt collection, dealing with payments and enquiries. The cost of leasehold management is made up of salary costs for staff and managers working in this service and overhead costs. Leasehold management costs are divided equally between each property based on the services provided to the block.
Repairs and maintenance Communal repairs to the structure, communal areas and services in your building. Cyclical maintenance and redecoration such as painting and prior to paint repairs.  We identify all repairs and maintenance, including cyclical maintenance completed to your block, and provide you with this information to scrutinise prior to billing.  The block cost is divided by the number of units in the block. For example, 4 units in the block, each property pays ¼ of the costs.
TV aerial repairs Repair and maintenance of communal TV aerials. We identify the cost of repairing and maintaining the communal TV aerials during the financial year. The block cost is divided by the number of units in the block. For example, 4 units in the block, each property pays ¼ of the costs.