Service charges

Find out more about service charges and what you may need to do on this page.

As the landlord, we can recharge you for any services and works that we provide to your block or estate. This is called a service charge and the proportion of the charge that you need to pay is set out in your lease.

The charge normally covers the cost of such matters as general maintenance and repairs, insurance of the building and, where the services are provided, central heating, lifts, lighting, and ground maintenance. The charges may also include the costs of management by us or by a professional managing agent.

Actual service charges

These are the actual costs for the services you received in the previous financial year. You will be sent an invoice in April 2022 which will be for the actual costs of providing services from 1 April 2021 to 31 March 2022.

We do not provide estimated costs. Each year in April you will be charged the actual costs in arrears for works or services undertaken in the previous financial year.

Management fees

A management fee is included within the service charge to cover our administrative cost of managing the services and our overheads. It is charged in accordance with the terms of your lease.

It covers staff costs for dealing with enquiries, complaints, income collection, setting of service charges, repairs, and other services. In some cases where there is a managing agent, they may also charge a management fee in addition to our fee.

Other costs you are responsible for

As well as any mortgage costs, leaseholders are responsible for paying:

  • costs to run their home, including electric, gas, water and Council Tax bills
  • home contents insurance
  • the cost of any internal repairs, and replacement of fixtures and fittings (for example new kitchens or bathrooms)
  • a share of the cost of any major repair or improvement works to the building, including re-roofing, new gutters, and replacement of lifts
  • the cost of maintenance and repair to communal heating systems if your block has one

Major repair or improvement works may cost several thousand pounds, as a leaseholder you may be required to pay a significant amount towards any work the council decides is necessary.

We will consult with all leaseholders in the building if:

  • proposed major works will cost a leaseholder more than £250 per home
  • new service contracts will cost a leaseholder more than £100 per year

You can view more information about this under our section 20 guidance page.

If you want to know more about a particular charge, including what it’s for or how we have calculated it, please email leasehold@arun.gov.uk

How to pay

Online

Pay leaseholder charges

Direct Debit

To set up a Direct Debit, print and complete our leasehold Direct Debit mandate form [pdf] 121KB. The return address can be found on the form.

Bank transfer or standing order

Use your leaseholder account number as the reference
(10 digit number starting with 9)

Name of organisation: Arun District Council

Bank name: Lloyds Bank

Sort code: 30 80 12

Bank account number: 14615968

Problems paying

We are here to help. Please contact us as soon as possible on 01903 737979 or by email at leasehold@arun.gov.uk so we can discuss your situation.

We also have a page dedicated to debt advice which you may find helpful.

If you don’t pay your service charge

Paying your service charge should be a top priority from your outgoings.

If your service charge is not paid and you do not engage with us, we will follow our leasehold arrears policy which could result in:

  • further costs being passed on to you
  • contact with your mortgage lender
  • as a final sanction, forfeiture of your lease

These actions are not taken lightly, so you should contact us as soon as possible if you are having financial problems so we can work with you.