We will make it clear at the start of your lease or tenancy what service charge you will need to pay for any extra services in addition to your rent. 

The lease or tenancy agreement usually outlines: 

  • What services are chargeable 

  • How costs are divided among residents 

  • When and how payments are due.  

Leaseholder additional charges

Leaseholders typically pay for more extensive and long-term property costs through service charges than tenants do. The below shows  a breakdown of what leaseholders may be responsible for that tenants usually aren't.  

Additional items Leaseholders pay for: 

  • Major repairs and structural maintenance - includes roof repairs, external wall maintenance and lift replacements 

  • Reserve or sinking funds - contributions toward future large-scale works like refurbishments or replacing communal systems 

  • Building insurance - Leaseholders often pay for the entire building’s insurance, while tenants only insure their own contents 

  • Audit fee -This is the actual cost incurred by Your Housing Group for providing all services relating to an independent accountant for carrying out an independent review on a property's service charge accounts and financial statement to ensure they are accurate and in line with the lease agreement. 

On your property budget and accounts, you’ll see a number of services specific to your property which are covered in your service charge. Below you’ll find an explanation of what each service is and what types of costs it covers. 

Management, administration & charges
  • Management fee
    This charge is for an administration fee of 15% which is charged on the total cost of services to communal service charges. It covers our costs for obtaining and managing the services and the cost of preparing and reconciling the service charge accounts and associated administration tasks throughout the year
  • Managing agent services
    This charge covers managing agent services. In some cases, we don’t own the freehold, so a third‑party managing agent acts on behalf of the freeholder to deliver a range of services for the estate. This fee is paid to them for carrying out those responsibilities

  • Staffing costs
    This covers the cost of staff who help ensure the safety, cleanliness, and compliance of communal areas. These staff members play a key role in supporting day-to-day estate management and ensuring that services are delivered effectively

  • Intensive housing management 
    This charge is for the provision of an intensive housing management service, delivered to residents, in our Supported Housing schemes and Retirement Living Schemes. This includes the management of scheme facilities, providing additional onsite guidance, and arranging for activities such as repairs to be carried out. The charge is applied to elements of service which are required in a scheme setting, but which would not be required in someone’s family home

  • Partner agents
    This is the cost we incurred relating to a service that we provide on behalf of another company in the managing and maintaining of the shared area of a property. 

  • Prior year annual (surplus)/deficit
    This means that the previous year service charge cost has either recorded an underspend (surplus) which will slightly reduce the amount you will pay or overspend (Deficit) which will slightly increase the amount you will pay. 

Utilities, energy & communal facilities
  • Communal electricity
    This charge is for the cost of electricity to communal areas covering communal lights, and any communal equipment needing electricity where applicable

  • Communal gas
    This charge is for the cost of fuel charges for the communal areas and hot water provided in a sheltered scheme to a communal bathroom, laundry room or kitchen, for example

  • Communal water
    This charge is for the actual cost incurred for providing water in the communal areas of a block/property

  • Amenity charges
    An amenity charge is a charge for personal utility costs so covering electricity, gas and water where applicable. This is for the cost of the utilities within your individual property and not for the communal areas

  • Central monitoring
    This charge covers the actual cost for operating an offsite monitoring centre for security or emergency system

  • White goods
    This is all the actual cost incurred for all invoices relating to the provision of white goods household items such as fridge in a communal area

  • Laundry
    This charge covers the cost of maintaining, operating or renting any communal laundry facilities provided at your scheme. This will cover washing machine and tumble dryers

  • TV licence
    This is all the actual cost incurred for all invoices relating to the provision of TV licence cost in a communal area

  • TV aerial
    This is the actual cost incurred for the installation and maintenance of TV aerial cost in a property. 

 

Cleaning, estate & grounds maintenance
  • Caretaking (block or estate)  
    On some sites we have caretakers providing both internal and external services to ensure the property and wider estate are maintained to a good standard. This charge includes costs such as vehicle hire, cleaning materials, a proportion of the caretaker’s salary, estate services management costs and the equipment they use
  • Communal cleaning
    This charge is for the cost of cleaning the communal areas inside a block such as stairs, communal hallways. This can cover infrequent communal cleaning such as carpet cleaning
      
  • Window cleaning
    This charge is for the cleaning of communal windows within a scheme 

  • Grounds maintenance contract
    This charge is for the cost of maintaining the grounds of the estate around or near to your property. This includes services, such as grass cutting and maintenance of flowerbeds. External contractors or our own Grounds Maintenance Operatives may carry out this work

  • Pest control
    This charge is for any costs incurred in clearing pests from the communal areas, or where there is a risk of infestation from an individual property to communal areas, including the use of pesticides and pest control contracts.  
Repairs, safety, insurance & major works
  • Electrical testing
    This charge covers the cost of periodic electrical safety checks carried out in communal areas of your building. These checks are essential to ensure that all electrical installations and equipment meet legal safety standards and do not pose a risk to residents or staff

  • Roof fall arrest system
    This is an aspect of a service charge element that covers the costs for repairing, servicing and inspection of the building common roofs area to ensure the safety of those accessing them, such as contractors and maintenance personnel

  • Day to day repairs
    This charge is for your share of costs for day-to-day repairs to, or within, communal areas of your block or on your scheme, for example, repairs to a door entry system or a lift repair. Repairs may or may not all be budgeted for, but you will be recharged for any eligible works when we send you your service charge accounts

  • Door entry
    This charge is for the annual cost of maintaining, repairing and servicing door entry systems

  • Lifts
    This charge is for the cost of servicing and maintenance carried out, to ensure that lifts or stair lifts are safe and in good working order

  • Gate and barrier costs
    This charge covers the cost of maintaining, servicing, and repairing any gates or barriers installed at your scheme. These systems are typically used to control vehicle or pedestrian access to the estate or block, enhancing security and privacy for residents 

  • Fire protection
    This charge is for the cost of service and maintenance of fire protection measures such as alarms, sprinklers and automatic opening vent systems

  • Emergency lighting
    This charge is for the maintenance and repair of any emergency lighting in the communal areas

  • CCTV
    This charge covers the cost of operating and maintaining CCTV systems installed in communal areas of your scheme. This also covers any repairs or replacements of the system. CCTV is used to enhance safety and security for residents, staff, and visitors by monitoring shared spaces

  • Legionella
    This charge covers the cost of managing the risk of Legionella bacteria in communal water systems. This includes Risk Assessments and any compliance service checks

  • Portable appliance testing
    This charge is for periodic checks of portable equipment in communal areas not owned by individuals, and periodic checks of electrical installations/equipment to the common parts of a building to ensure they are safe in line with regulation

  • Building Insurance
    Under the terms of your lease (where it applies), we have an obligation to insure the building on behalf of the leaseholders against risks like fire and flood. Leaseholders and shared owners are recharged for the cost of this insurance

  • Major Works – renewals and replacements
    This charge is for major works costs, for planned or cyclical maintenance such as roof replacements, new lifts, external redecoration and redecoration of communal areas inside a building. Before any major works are started, we will consult with residents in accordance with Section 20 Legislation as required and advise how much the work is estimated to cost

  • Sinking Funds
    In many leases there is a provision to collect contributions towards major works and renewals/replacements in advance to create a ‘Sinking Fund’ (this is sometimes referred to as a Reserve Fund). The purpose of a Sinking Fund is to build up a pot of money to contribute to the cost of any work that may be needed in the future when equipment has reached an age where it needs replacement, or when structural work is needed to keep the building in safe and working order. This would primarily be major works and Section 20 consultation would take place prior to works commencing. Sinking Funds help to make the cost of major work more manageable

  • Council Tax
    This is the actual cost incurred by Your Housing Group for all invoices received from the council for council tax bill on the property. 

Documents we send you 

Service charge budget 

Your service charge budget (sometimes called an estimate) shows what we expect your services to cost over the next 12 months. We work this out using the current contract prices, the costs from the previous year, and any changes we already know will happen, such as different service frequencies or new types of services.

How the service charge budget is calculated 

Each year, we set a budget for the services provided to your home. Our financial year runs from 1 April to 31 March. Because we don’t know the exact costs in advance, we estimate them by looking at what the services cost over the past 12 months and considering any changes we expect in the next 12 months.

You will receive a budget in late February or early March ahead of the new financial year commencing in April (unless your property runs on a different time frame in which case you’ll receive your budget usually a month before the start of the new financial period). This budget is provided with your rent review letter if you receive one.  

Service charge accounts 

A set of service charge accounts are issued to all customers within six months of the financial year end for each scheme. These show: 

  • the budget for the period i.e. the costs we estimated,  

  • the actuals for the period i.e. what the actual cost of providing the services was for the scheme 

  • the variance i.e. the difference between the budgeted cost and the actual cost for the service in the year 

What happens if there is a difference? 

We do not always know the exact cost of services for the year when we set the charges, and this means the actual costs at the end of the year can be different from the amount we estimated. 

For customers who pay a variable service charge: 

  • If the service charge we asked you to pay is higher than the actual costs for the year, there will be an ‘underspend’, known as a surplus. This surplus amount is carried forward and built into the next service charge we set, which will slightly reduce what you would pay for in a subsequent period. On your accounts it will clearly state a service charge surplus for the year. 

  • If the service charge we asked you to pay is lower than the actual costs for the year, there will be an ’overspend’, known as a deficit. This deficit amount would also be carried forward and added to the next service charge we set for a subsequent period. 

What if part or all of my service charge is fixed? 

A fixed service charge is a type of service charge where the amount is set in advance and remains unchanged throughout the year with no year-end adjustment, regardless of the actual costs incurred by YHG or managing agent. 

Key features of fixed service charges:

  • Pre-determined amount: The charge is agreed upon at the start of the period and does not fluctuate 

  • No year-end adjustments: Unlike variable service charges, there’s no reconciliation or refund if actual costs are lower—or additional billing if costs are higher. 

What can I do if I want more information? 

We appreciate that some customer want more information on the budget or year-end accounts than is provided in the letters. If you want more information, please  email [email protected] 

We can provide you with: 

  • A more detailed breakdown of costs by invoice if needed 

  • A breakdown of repairs which have taken place 

  • Information on how charges have been set and how your scheme figures have been compiled 

  • Help and signposting if you feel you haven’t received a service you have been charged for 

  • Details of our complaints process if your question cannot be resolved informally.  

If you live in a scheme with an on-site manager, they will have received the budget and breakdown of the costs for the scheme and can assist with any questions you may have.  

 

Read our S20 Guidance & FAQs here