As a leaseholder you have a “share” in the building you live in.
This means you have to pay a share of the costs in maintaining the condition of the building. These costs are called service charges. Paying them is one of the conditions of your lease.
Service charges usually cover things like repairs and services to areas you share with your neighbours. For example providing lighting in the lobby or maintaining shared gardens and lifts.
You normally have to pay a share even if you don't use some of the services. For example, even if you live on the ground floor and never use the lift, you will have to pay something towards its maintenance.
Ground rent is a fee you must pay as a condition of your lease for the land your home is on. It must be paid on the due date. We can take legal action if you don't pay your ground rent.
Service charge loans
If you are a leaseholder and purchased your home using Right to Buy, you may have the right to a loan. This would be to help cover any charges for repairs that we have done.
When we send you your service charge bill (every year), we will tell you if you have the right to a loan. You then have six weeks to apply.
To qualify for a loan:
- Your lease must not be more than ten years old
- Your total service charge bill must be more than £2,640* in any one year
- You must borrow between £880* and £35,1000*
If you are entitled, you will have to repay this loan over a period of three to ten years (depending on the amount you borrow).