Changes to your rent and other charges - Leasehold customers

Service charges - A service charge is the amount payable under the terms of your lease for the delivery of communal services, communal repairs, maintenance, improvements, and the landlord’s cost of management.   

For example, if you live in a flat, then the cost of maintaining any shared areas, such as corridors, stairwells, or a shared garden will be covered by service charges. The amount charged depends on the services you benefit from. If you don’t receive any services, then you won’t have to pay any service charges. 

Ground rent – Some shared ownership customers are required to pay a ground rent charge such as those living in a flat where the freehold land is owned by us. This is usually applied annually and you will issued with a ground rent notification. Ground rent charges are not increased each year.

Building insurance - If you are the leaseholder of your property, we arrange the buildings insurance for your home on your behalf, and you will have to pay for this by way of a service charge.    

There are exceptions when someone else owns the freehold and another managing agent provides services. If this applies to you, we will have advised you of this when you moved in.    

We work with our insurance advisors and brokers each year to ensure you get the best value for building insurance. Bromford appointed a new insurance provider on 1 December 2023 and in the event of a building insurance claim made after this date, there is no excess to pay. 

If you have any questions about this change, please contact allan.maund@bromford.co.uk.  

We have a legal obligation to provide certain services where you live and to maintain any communal areas, and you are required to contribute towards the cost of providing these services as per the terms and conditions of your tenancy agreement. 

The list of services covered under your service charge are set out in the service charge statement we send to you along with your rent review letter. They will also be set out within your lease.   

The services listed will be relevant to you and your home.  

Leaseholders have variable service charges. This means the service charges you will see in your letter will be an estimate of what we believe it will cost to deliver the services you receive from April. We calculate how much your services have cost over the previous full year and compare that to what we have charged you for that year.  

If we have charged you more than we have spent, the surplus / credit will be offset against the following years’ service charges to reduce them. If we charged you less than we spent, then the deficit / shortfall will be added on to your service charges for the following year. This means you will only ever pay the actual costs we incur in providing the service; no profit can be made through service charges. 

We are required to send customers with variable service charges a breakdown of the service charge account each year. This is normally issued in September of each year and will set out the comparison between the costs incurred for the services received, compared to the service charges applied, setting out any difference. 

If you are unhappy with the delivery of the service you are paying for, please contact your neighbourhood coach in the first instance. 

Please contact your income management advisor with the details of your query. They will liaise with our rents and service charge team to review your charges and address any issues where applicable. 

We will enclose with your letter, a ‘rights and obligations’ document in relation to your service charges.  This details your right to refer your charges to the First Tier Tribunal – Property Chamber if you remain unhappy with your service charges.  The First Tier tribunal can review your charges and make a decision on whether they are reasonable.   

More information can be found here: https://www.justice.gov.uk/tribunals/residential-property#leasehold  

Customers can also contact agencies such as Citizens Advice Bureau for independent advice or an independent solicitor.  

You can also contact our customer solutions team to make a complaint here Complaints | Bromford 

The new charges will apply from 1 April 2024. 

If you pay your charges by direct debit, we’ll amend your payments to accommodate the new amount and you will receive a letter in March to confirm the new payments.  

Direct debit is the easiest way to pay, please contact your income management advisor if you wish to set up a direct debit. 

Other payment methods 

Payments can also be made using a debit or credit card via your online  customer portal account, or by telephone using the automated payment line on 0330 1234 034.  You will need your account reference number to hand. 

For customers with weekly charges normally applied over 48 weeks, the non-collection weeks will be: 

• Week commencing 26 August 2024 
• Week commencing 16 December 2024 
• Week commencing 23 December 2024 
• Week commencing 31 March 2025 

For customers with weekly charges normally applied over 50 weeks, the non-collection weeks will be: 

• Week commencing 16 December 2024 
• Week commencing 31 March 2025  

For customers with fortnightly charges, the non-collection periods will be:  

• 9 December 2024 to 22 December 2024 

• 31 March 2025 to 13 April 2025