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Shared owners
 

Service charges and management fees

Service charges

Service charges are payments you make to us for all of the services that we or a management company provides, such as communal cleaning and general maintenance of your communal surroundings.

Service charges differ from one area to another; they will depend on the layout of your neighbourhood, the type of home you have bought and the terms of your lease. We can only charge for services that are specified in your lease unless you agree to extra services being provided.

Please see our Frequently Asked Questions (FAQs) and headings explanation sheet for more information on service charges for leaseholders, shared owners and freeholders.


Buildings insurance

Where Sovereign are the freeholder, under the terms of your lease we are obliged to provide buildings insurance. It offers cover for the structure of the building, which is explained in this summary of cover.


Management fees

What is a Management Fee?

The management fee covers the costs of things like managing contracts for work and services to your home, the costs of Property Services visits, leasehold management, billing, rent collection, site visits and scheme visits.  The management fee is included in the service charge you pay each year.

From 1 April 2015 we introduced our new management fee to those leases that allowed it, as agreed by the First Tier Tribunal, to cover the costs of:

  • Work and services to your home
  • Surveyor visits 
  • Leasehold management administration 
  • Billing and rent collection
  • Site visits

 

The new fees reflect a more accurate cost of managing your home and the services we provide you with.

Band A

You’ll be in Band A if you pay rent, building insurance and audit fees – usually this band applies if you are in a house that does not receive any other services from us.

  • Services: Collecting rent
  • Cost of service(s) pa: £108

 

Band B

This band applies if you live in a flat with your own entrance, so you pay rent and/or service charges, contribute to the maintenance of the structure of the building and external communal services, such as grounds maintenance

  • Services: Collecting rent, repairs and/or reserve fund and grounds maintenance
  • Cost of service(s) pa: £165

 

Band BH

This band applies if you pay rent, building insurance, audit fees and additional services such as grounds maintenance

  • Services: Collecting rent, grounds maintenance
  • Cost of service(s) pa: £129

 

Band C

This band applies if you live in a flat and we provide internal and external communal area maintenance.

  • Services: Collecting rent, grounds maintenance, communal area maintenance
  • Cost of service(s) pa: £210

 

Band D

For some of our homes, the services are either solely provided or partially provided by an External Management Company. If they provide more services to you than we do, then you’ll be charged the management fee for Band D

  • Services: External managing agents and management company charges
  • Cost of service(s) pa: £63

 

Your lease may set a specific management fee; this could either be based on a percentage or a set amount. If this is the case then your management fee will be different from the above figures.