A service charge is an amount that residents pay to cover the cost of providing communal or shared services to a building, and sometimes the surrounding estate. It is usually for communal areas which your home either has access to, benefits from its upkeep, or is part of the scheme or estate where you live. A service charge is usually paid in addition to rent.

The way service charges are calculated and what they cover are explained in your tenancy agreement or lease. We are committed to providing all residents with value for money and quality services.

On this page, you can find more information about how service charges are calculated, what they cover and our policies. If you need any help reading the information on this page, including translating or reading aloud, visit the accessibility section of our website for more information

Image of a shared living space with sofas, TV and a table.

Service charges: Frequently asked questions

If you need to pay a service charge, this will be confirmed within your tenancy agreement, lease, transfer document (for homeowners) or sales information which will have been provided to you during the purchase of your home.

Depending on your tenancy type and tenure, we will send out an annual budget which will detail everything that your service charge goes towards. If you have an affordable tenancy or have a fixed service charge, the services included will be explained in your tenancy agreement provided to you during your sign-up.

You need to check what your tenancy agreement, lease or freehold transfer document says. Below are some of the most common things that may be included in service charges although this will vary depending on where you live.

  • Cleaning communal areas such as shared corridors and stairways.
  • Gardening or grounds maintenance to communal outside areas.
  • Maintenance and servicing of door entry systems, fire alarms, and lifts.
  • Electricity for lighting in communal areas and other electrical services.
  • Minor day to day repairs needed in communal areas or to the main structure of blocks of flats.
  • Staff employed to provide services where you live, such as scheme managers

You can find a full list of the services we provide [here].

How much you contribute is calculated according to the terms of your lease or tenancy agreement.

If you are a leaseholder, your lease may allow us to share out the total cost to leaseholders by any method we consider reasonable. This is supported by legislation that requires landlords to set charges in a reasonable manner. Alternatively, the lease may specify a particular method of payment, for example dividing the charge by the number of flats (or houses) in a block (or estate).

Your lease, freehold or legal agreement sets out how we divide up charges between flats or houses.

We usually set service charges by estimating the total cost of providing services and maintenance for the year. At the end of the year, we check if the amount we spent was more or less than the amount we estimated. If we spent more than the budget we normally make this up through your service charge the in the next budget. If we spent less than the budget we normally credit this amount to the service charge in the next budget.

Depending on the type of services your property contributes towards, you may have received a set of accounts which will confirm the actual money spend at your scheme. We base our budgets on these costs and on any knowledge we may have on any upcoming costs which we know of. We also take into consideration the annual Consumer Price Index (CPI) as advised by the Government and any increases in existing contracts.

At LiveWest, we have both fixed and variable service charges. The main differences with these are that variable service charges are calculated based on the actual costs which your scheme, block or estate has collected during the previous year.

Variable service charges can change each year based on the actual costs incurred the year before. Every year you will receive a set of accounts and a budget confirming the actual costs applied to your scheme and what we predict the costs will be for the following year, which is based on the actual costs incurred previously.

Fixed service charges are set at the start of the financial year and will not change throughout the year. Fixed service charges do not require us to issue budgets or accounts. Your service charge for the following year will be confirmed in your annual rent review letter.
 

We manage several contractors who provide a wide range of services for our customers, such as grounds maintenance, communal cleaning, and window cleaning. These contracts are renewed at different times of the year, or when new contractors are appointed. We usually only increase budgets for these costs in line with the advised CPI rate. If a contractor changes their costs after the budgets have been posted out to you, the previously stated costs will still be applied, however a surplus or deficit may be shown the following year. The increase in the CPI rate will hopefully reduce the impact of any increased contractor costs received throughout the year, to help reduce a possible deficit having to be recovered the following year.

We split your service charge costs into eligible and ineligible service charges. If the service charge is eligible it can be covered by Housing Benefit or Universal Credit. Depending on the level of benefit you receive (and if you have any ineligible costs) your budget statement will confirm whether you need to top up your benefit payments to cover any of these costs.

Service charge costs may differ from home to home. Depending on your tenure (renting or shared ownership, for example), some costs are not applicable if you rent your home and some costs are calculated on the number of bedrooms within your home. Your lease or tenancy agreement may also confirm specific costs which may not be relevant to other homes nearby.

We have two ways in which we pay for large communal assets to be replaced in a block or estate.

Some customers may pay into a sinking fund over a number of years to build up enough money to cover the cost of item to be replaced. If you are a homeowner, you may also contribute to the replacement of structural items such as a roof or communal doors, or planned cyclical work which need to be carried out. 

Some customers may pay a provision amount which is sometimes called depreciation. This is the cost of replacement item spread over the number of years we expect it to last before it needs to be replaced again.

The administration charge covers the cost of things like:

  • Preparing, calculating and issuing service charge statements.
  • Checking and paying invoices.
  • Tendering for a new contractor.
  • Managing the contracts for work and services (such as cleaning and grounds maintenance).
  • Dealing with queries and complaints.

We review our administration charge to make sure that it covers our costs of administering service charges.

If you are a tenant, an amount is included in your rent to cover repairs to the building structure or estate. If you are a leaseholder, charges for day to day repairs to the building and estate are a condition of the lease.

Management fees cover the expense of:

  • Property management services for your building and  estate. 
  • Arranging buildings insurance.
  • Providing public liability insurance.
  • Managing accounts.
  • Staffing and office costs. 
  • Complying with Homes England regulations.  
     

You may have to pay a shared ownership rent which is initially set when the property is first built or acquired by us and is then reviewed annually using a formula set in the shared ownership lease.

Ground rent is usually paid every year by leaseholders. Your lease will say whether or not you need to pay ground rent. If it is payable, we will send you a payment request every year. Ground rent is collected separately from your other service charges.

If we provide buildings insurance for your home or building you pay this as part of your monthly charge to us.

You can email the team directly at service.charge.team@livewest.co.uk. Please include your name, property address and contact details in your email.

Or if you prefer to speak to someone, please feel free to call the Service Charge team directly on 01392 302138. 

If you are unhappy with the service being provided by LiveWest or by one of our nominated contractors, please get in touch with us.  You can contact the Customer Services Centre on 0300 123 8080 who will ensure that a colleague from the most appropriate team contacts you to discuss your concerns. Alternative ways of getting in touch with us are listed on our website in the Contact Us section. Once we have received your concerns, we will investigate, let you know our findings and confirm what action we will take.

If you think you will struggle financially to pay these extra costs, then please take a look at our cost of living section on the website where you will find useful information and advice around finances. 

You will also find information about our Tenancy Sustainment team who may be able to help you with budgeting advice. If you rent your home from LiveWest and would like to discuss your financial situation with us, you can complete an online referral form on the website to request an initial discussion with the Tenancy Sustainment team. If you do not rent your home from LiveWest and would like to discuss your current financial situation, your Income Officer will be able to discuss what support is available to you.

More information

You can find more information about service charges below. 

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