Your Service Charge allows us to recover our costs in providing services to leaseholders and is made up of several elements as shown below.
Services
This is where you will find costings for any services provided such as caretaking, cleaning, communal electricity, concierge etc. Some services will be based on the cost to Sandwell of providing staff, materials etc and some, like communal electricity will be based on usage.
Repairs
This is the cost of maintenance and repairs to your property, and the building in which your property is situated, for the 12-months up to the start of the current billing period. You will be charged a proportion of the cost of works to common areas (such as the roof) and the full cost of works to your property (such as your front door or windows). Sandwell MBC is not responsible for repairs and maintenance within your flat, although it will carry out emergency work to prevent the problem causing either a nuisance to other people, or damage to the structure of the block. You will be charged for any work carried out. You may be able to make a claim on your buildings insurance policy for repair items, but we are unable to do this on your behalf.
Maintenance
This includes the cost of maintenance services provided, such as grounds maintenance/grass cutting (which is charged per square metre for the area identified during the original right to buy application), refuse chutes, lift maintenance, dry risers and smoke vents etc.
Insurance
The Council (as freeholder and landlord) insures the building against loss or damage caused by a range of perils as specified in the building's insurance policy.
The sum insured (or reinstatement value) relates to the cost of reinstating or rebuilding the property, not the current market value.
It includes the common parts of the structure, such as the foundations, staircases and roofs, and is reviewed annually. The Council's insurance policy does not cover the contents in your home. You are strongly advised to arrange a separate insurance policy to cover your own contents, including any items you may have stored in your shed where applicable.
Management
Management fees enable Sandwell MBC to recover all the internal overhead expenses incurred. This can consist of staff time (accounts, debt recovery, technical staff, IT support, supervision and management), printing, postage and office running costs associated with leasehold management.
Ground rent
This is the £10 per year ground rent charge, which is standard for all leasehold properties bought under the Right-to-Buy scheme. Properties purchased under other schemes will incur a different charge.
We have a legal duty to collect a share of the cost of maintaining and managing the block from leaseholders. If we did not do this, council tenants would be paying for leaseholders in their rents and that would be breaking financial regulations.
Payment Options
Your bill is payable in full on the date specified on your bill. If you prefer to pay in instalments, this should be done by Direct Debit.
You can set up a Direct Debit online or make a payment by other methods via your MySandwell account or by phoning 0121 368 1166.
Problems paying your Service Charge bill
If you have received a bill from Sandwell MBC and cannot pay immediately, please contact Home Ownership Services for assistance by email or telephone 0121 569 5203.
We can provide guidance for you to pay your service charge and can offer the following options:
- An assessment of your financial circumstances
- Negotiation of a realistic repayment agreement
- Assistance in payment options
Applying for benefits
The benefits system can be confusing, and the names of benefits and entitlements often change.
You may be able to get help with mortgage repayments and ground rent payments if you are:
- Sick
- Signing on and looking for a job
- Not working - for example, because you are retired or a single parent unable to go out to work because you must look after your child
- Working full or part-time but finding it hard to pay your bills - depending on your circumstances, help could be available if you are in low-paid employment.
The Welfare Rights Team may be able to advise and can be contacted on 0121 569 3158 or by email.
What to do if you think you qualify for benefits
You need to get in touch with the Department for Work and Pensions to apply for benefits. They will consider your housing costs when working out if you qualify.
Service charges are part of your housing costs, so it is important that you show the Department for Work and Pensions your service charge invoice.
If you are already receiving benefits, you must show the Department for Work and Pensions your new invoice as soon as you receive it. They will calculate whether you are entitled to any extra benefits.
Failure/Refusal to pay
Your lease is a legally binding document and by signing it you have agreed to pay costs that the Landlord incurs to manage and maintain your property and block. By refusing to pay, you are breaking the terms of your lease and we can go to court to seek a judgement against you.
In extreme cases, the court may decide that you have seriously broken the terms of your lease and give us possession of your flat.
If we do go to court, this will incur legal costs increasing your financial problems. It is therefore very important that you work with us to sort out any problem before it escalates.
What to do if you do not agree with the charges
We always attempt to calculate charges fairly and correctly, but if you think we have made a mistake or have charged you for works you feel have not been carried out or are substandard, please contact Home Ownership Services who will investigate and respond to your query or complaint.
You also have the right to apply to the First Tier Tribunal and both parties will abide by their decision. However, the tribunal can make a charge to hear your case.
Independent debt advice
Where can I get independent advice on my finances?
There are several ways to get financial and budgeting advice if you are experiencing financial hardship and require free advice.
How can I maximise my income?
It is important that you make sure you are receiving all the benefits you are entitled to. Managing your money support is being offered by the Welfare Rights Team. To make a referral contact the Welfare Rights Advice Line on 0121 569 3158 or email welfarerights_team@sandwell.gov.uk