Service charges explained

Service charges are payments made by you for the costs of providing services in shared areas. Find out more about how we make these charges below:

Curo Service Charges

What are service charges?

Service charges are payments made by our customers for the costs of providing services in shared areas.

Services provided to your home can differ depending on the type of property you live in or the area surrounding you.

Here are examples of some of the services that could be found in flats or houses: 

Flat

• Cleaning
• Electricity
• Window cleaning
• Door entry
• Fire alarms
• Grounds maintenance 

House

• Grounds maintenance
• Estate electricity (estate lighting owned by Curo)

Our service charges are grouped into charges for:

• The estate your home is on
• The block your home is within (a block is a set group of properties)
• The internal shared areas within your block

The service charge will also differ considerably between tenants and home owners. Those differences are explained below.

The costs of these services are apportioned to your property reflecting the contribution required – this percentage (shown on your statement) will depend on factors like the total number of homes that share these services, and the property size.

Your tenancy, lease agreement or deed of conveyance tells you how we manage the costs of the services we provide.

How do we calculate your charge?

At the end of each financial year (running from April-March), we compare what we estimated it would cost to provide your services against the actual cost. We then make a charge or credit to the property to cover any difference. This adjustment applies to the property rather than to the resident.

Tenants

For our tenants, as set out in your tenancy agreement, we have a 3-year cycle of charges. We do this to stop large payments building up.

Year 1 – we will estimate what we think we are going to spend on services to your shared areas over the coming year. We charge these weekly alongside the rent charge. You will see details of the charges in the rent review at the start of the year.

Year 2 – we will create a new estimate for year 2, but we will then review what it actually cost in year 1 to provide those services and compare it against the year 1 estimate. If we have estimated too much, a credit is due back to you. If we have estimated too little, you'll need to pay something extra.

Year 3 – we will create a new estimate for year 3. Your charge this year is adjusted to repay any credit you are due, or to recover any additional amount you need to pay. This cycle continues all the time, so your charge in year 3 is made up of both estimated costs from that year and adjustments from year 1. We only make changes to your charge when we review your rent, so that the charge can be made and collected as part of your total rent.

Shared owners

The same 3-year cycle described above applies for shared owners, with monthly rather than weekly contributions.

Shared owners do pay for roads owned by Curo, structural works and buildings insurance as your lease agreement makes you the owner of the home. Curo does not pay a proportion of the services based on the equity owned as it is you as the owner who benefits from these services.

Leaseholders 

Where Curo has a responsibility to maintain buildings the cost of doing so is recovered through the service charge. Generally, we will not look after the inside of your home, but will be responsible for maintaining the structure and exterior of the building. This means that the service charge covers not only shared estate services, but also things like the day to day repair of the building, insurance and so on. In addition, leaseholders may pay their share of the cost of major works needed to an estate or building. There are rules (known as Section 20 law) which ensure that you are consulted and get advance notice of such costs, and these are invoiced as soon as possible after works are completed. Occasionally shared owners and freehold owners may have to contribute to major works in the same way.

Managing your charge Leaseholders are managed differently, in line with your individual lease agreement.

Year 1 – we will estimate what we think we are going to spend on services to your shared areas over the coming year. We generally send these annually in late February.

Year 2 - we will create a new estimate for year 2, but we will then review what it actually cost in year 1 to provide those services and compare it against the year 1 estimate. If we have estimated too much, a credit is due back to you. If we have estimated too little, we will request further payment from you. Rather than carrying this over, the adjustment required is usually credited or invoiced by the end of September as a lump sum.

Freeholders 

Freeholders are customers who have exercised a Right to Buy or Right to Acquire on their house. If there is a service relating to the estate your home is in, we will say in the deed agreement that there is an ongoing obligation to contribute to that service.

The annual cycle of estimates and charges works in the same way as leaseholder charges.

Sinking Funds For shared owners, leaseholders and freeholders, depending on your agreement we may ask for a contribution to a ‘sinking fund'. At times you will be expected to contribute towards major works. The sinking fund can be used to ensure that rather than making a one-off 30-day payment, you can spread the cost of the work out over the years before works takes place. When the major works are completed, the costs are initially offset against the money held on account. Any remaining money would then be passed on to you, while the fund again builds up in time for the next set of works.

Adding, removing, amending service provided 

For tenants 

Our tenancy agreements usually allow us to review and amend the services we provide after consulting with you. Amendments might include introducing a new service we feel is needed, removing a service which isn't working, or making a fundamental change to an existing service agreement.

For leaseholders

Leases are worded broadly to ensure effective management of shared areas, rather than specifying the services provided. Where possible we will treat our leasehold customers in much the same way as our tenants, letting you know in advance of any changes.

What will you receive and when?

Year 1

At the start of the financial year you will receive an estimate: 

Tenants/shared owners this will be in the form of a rent review

Leaseholders/freeholders this will be in the form of an invoice 

Payment of the estimate is based on your occupancy agreement but is paid during that financial year.

Tenants usually charged weekly 

Shared owners usually charged monthly 

Leaseholders usually annually 

Freeholders usually annually

Year 2 

At the end of the financial year, we'll review the estimates and within six months of the end of the financial year we send out a detailed statement of the actual costs: 

Tenants/shared owners statement will be for information only 

Leaseholders/ freeholders statement will include an invoice/credit note for the difference.

Year 3 

You will receive an estimate: 

Tenants/shared owners this will include the addition of the adjustment for Year 1 

Leaseholders/ Freeholders will have already been charged for the Year 1 adjustment the previous year, so you will just receive an invoice for Year 3

Universal Credit and Housing Benefit

Most of the services we provide to shared areas are eligible for assistance.

Services relating to your home, such as Council Tax, private utility supplies like gas and electricity, and satellite TV services are not eligible and have to be paid for by you.

You can see a full list of these services on our ‘Service Charge Descriptions' document.

Need help paying?

If you need help paying your rent please contact us on 01225 366000. It's better to contact us as soon as you start to get into difficulty rather than later when things have got out of hand.

Management charges

For social tenants: We charge a management fee as part of your service charge. Fees are based on the number of services you get.

For leaseholders and Shared Owners: These charges will vary.

Need help?

If you need help paying or understanding your rent or charges please email servicecharges@curo-group.co.uk.