Leasehold Service Charges - General explanation of charges
- LEASEHOLD MANAGEMENT SERVICE
What is the charge for?
The charge is for Leasehold services, we have to recover all costs involved in managing its leasehold properties.
Leasehold Management Service are those services provided to leaseholder, not all residents. This includes the calculation, billing and recovery of service charges, information provision and query handling, and a small amount of consultation where it is required for items charged in the annual accounts.
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Costs |
Description |
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Direct Costs |
Staff salaries in the delivery of services to Leaseholders and associated costs of running the service. |
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Management |
Staff salaries directly managing the delivery of services to Leaseholders. |
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Overheads |
Allocation for office costs, computer & telephones, back office support, etc. |
How is my share calculated?
At the end of each financial year we review and analyse the expenditure for Leasehold Management Service to determine which costs should be included in the management charge to leaseholders. The total cost of the service is then equally divided by the total number of leasehold properties managed by Tower Hamlets to arrive at the charge for the year.
- Refuse - Bin Hire
What is this charge for?
This charge covers the cost of hiring and cleaning communal bins. Bin Hire is charged to residents by the Council on the same basis as it is to private Landlords. The Council provides this service, through a Service level Agreement (SLA). The cost of the SLA accounts for 91% of the direct cost.
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Costs |
Description |
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Direct Costs |
LBTH Service Level Agreements (SLA) for Cleansing Services and the Mobile Emergency Team (91% of total cost). |
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Overheads |
Allocation for accommodation costs, computer & telephones, back office support, etc |
How is my share calculated?
You pay a share of the total Bin Hire cost for your block based on the *Gross Rateable Value (GRV) of your home.
*Gross Rateable Value (GRV) - is a measure of your property’s size and value compared with the size and value of other properties in your block, for example a three bedroom flat will have a higher GRV than a one bedroom flat in the same block, therefore paying a high share of service charge costs.
- Bulk Waste & Fly-tipping Collections
What is this charge for?
This charge is for Bulk Waste and Fly-tipping collections on your **mapsite. Charges made for bulk waste collection included in the Council Tax only provide for one collection per week. Where communal bins need to be emptied more regularly, including as a result of fly-tipping, we are required to pay an additional charge. Bulk Waste & Fly-tipping collections are charged to residents by the Council on the same basis as it is to private Landlords. The Council provides this service, through an SLA. The cost of the SLA accounts for the direct cost of the service.
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Costs |
Description |
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Direct Costs |
The Service Level Agreement (SLA) with the Council and reflects their cost of the service. |
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Management |
Allocation of time of staff that are involved in managing the service. |
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Overheads |
Allocation for office costs, computer & telephones, back office support, etc. |
How is my share calculated?
You pay a share of the total Bulk Waste & Fly-tipping cost for your **mapsite (the estate) based on the *Gross Rateable Value (GRV) of your home.
**Mapsites - consist of 1 or more blocks and communal areas including footpaths, estate roads, grass areas, shrub beds and buildings. Mapsites help us to calculate leasehold charges such as horticulture and caretaking services. Find your mapsite here.
*Gross Rateable Value (GRV) - is a measure of your property’s size and value compared with the size and value of other properties in your block, for example a three bedroom flat will have a higher GRV than a one bedroom flat in the same block, therefore paying a high share of service charge costs.
- PEST CONTROL
What is the charge for?
This is the cost of providing treatments for certain types of pests on your block including helping to identify pests and providing information on treatment. The Council provides this service, through a Service Level Agreement (SLA). The cost of the SLA accounts for the direct cost of the service.
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Costs |
Description |
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Direct Costs |
Service Level Agreement (SLA) with London Borough of Tower Hamlets. |
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Management |
Allocation of time of staff that are involved in managing the service. |
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Overheads |
Allocation for office costs, computer & telephones, back office support, etc. |
How is my share calculated?
You pay a share of the total Pest Control cost for your block based on the *Gross Rateable Value (GRV) of your home.
*Gross Rateable Value (GRV) - is a measure of your property’s size and value compared with the size and value of other properties in your block, for example a three bedroom flat will have a higher GRV than a one bedroom flat in the same block, therefore paying a high share of service charge cost
- ANTI-SOCIAL BEHAVIOUR (ASB)
What is the charge for?
This service covers the cost of dealing with anti-social behaviour within Neighbourhoods Services. The ASB service includes a police team of two sergeants and 12 constables. Parkguard Ltd has two patrolling teams. The police teams have their work allocated by the ASB manager. They work shifts between 7am and midnight. The police teams are dedicated solely to work on estates managed by the council.
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Costs |
Description |
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Direct Costs |
Front line staff as well as associated costs of running the service. |
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Management |
are exclusively Neighbourhoods Services line management costs for dealing with ASB. |
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Overheads |
Allocation for office costs, computer & telephones, back office support, etc. |
How is my share calculated?
You pay a share of the total anti-social behaviour cost based on the *Gross Rateable Value (GRV) of your home.
*Gross Rateable Value (GRV) - is a measure of your property’s size and value compared with the size and value of other properties in your block, for example a three bedroom flat will have a higher GRV than a one bedroom flat in the same block, therefore paying a high share of service charge costs.