How Much Is My Service Charge Going To Be?
The amount collected under the service charge allows for all anticipated expenditure required to provide the maintenance and services necessary at the development alongside contributions towards cost of any planned major works in the future. The exact amount payable depends on a number of factors including the maintenance and services provided to the development and the number of contributing properties. As an example: a small number of apartments sharing luxury facilities will always pay more than a large number of properties paying for minimal areas to maintain. No two developments are the same and as such it may be possible that people at neighbouring developments pay more or less than you, however there is usually a good reason why if this is the case.
At the beginning of each financial year, an estimate of service charge expenditure is produced and this details all services and maintenance anticipated and the likely cost, it also details your share and how much that will be. At the end of the financial year the actual amount of money spent is compared against the estimate and the amounts are balanced. If less is spent then you will receive a credit, if more is spent then it may be necessary to collect additional funds.
Service charges are estimated shortly before the beginning of the forthcoming financial period and invoiced in good time ahead of the coming year so you always know in advance how much needs to be paid. Most service charges are variable and therefore alter from year to year dependent on the needs of the development.
Further questions? Contact us.