FAQ

What is the service charge?

This is payable by all residents and contributes towards the cost of providing and maintaining communal services.

What does the service charge cover?

It varies between each scheme, but normally covers:

• employment of a Court Manager
• buildings insurance
• lighting and heating for communal areas
• cleaning of communal areas
• external window cleaning
• maintaining communal gardens
• maintenance contracts for equipment in communal areas
• management fee - for Housing 21 to provide and supervise the services and produce audited accounts
• sinking fund payments.

How is the service charge paid?

Monthly in advance, preferably by standing order from your bank account. You will receive further details once you move into your new home.

What happens if I cannot pay my service charge?

If you are having trouble paying your service charge, you may be entitled to claim benefits. Housing 21's benefit advisors will help you claim your entitled benefits.

Service charge and sinking fund contributions are compulsory for all residents, whether or not they use the facilities. You should ensure you are fully aware of all charges payable.

What is a sinking fund?

A sinking fund is a pot of money to which residents contribute either on a monthly basis or when the property is sold. The exact method of payment is set out in the lease. Having a sinking fund ensures that when major works are required, there will normally by sufficient in the fund to pay for them, and avoids a large one-off payment demand.

The sinking fund ensures each development is kept in good condition and maintenance is undertaken in a timely manner.

Details of each development's sinking fund are provided on an annual basis.

What does the sinking fund cover?

Repair and replacement of items such as:

• roofs
• windows
• external doors
• driveways
• redecoration of communal areas
• repainting external woodwork.

What are the Court Manager's duties and responsibilities?

• ensuring the safety and well-being of residents
• arranging assistance and help in case of emergency
• maintaining daily contact with residents
• encouraging social activities
• managing staff and contractors who work at the scheme.

How do I report a repair?

Repairs should be reported to the Court Manager. In their absence, contact the Housing 21 repairs team or use the emergency alarm system.

What about council tax and utilities?

You will need to contact the Council and any provider of gas, electricity and water to advise them of your move into a Housing 21 property and set up an account with them.

What are the insurance arrangements?

We provide buildings insurance to cover the structure of the buildings. You are responsible for arranging contents insurance to cover your own personal effects.

Can I release equity from the property?

It is usually possible to release equity; however, you are advised to consult a financial advisor as our leases do not permit some forms of equity release, and some finance companies do not offer it on certain types of lease.

Housing 21 will require details of the proposed equity release to ensure it complies with the lease.

What happens when I want to sell my property?

You must contact us in writing if you wish to sell your property. We will write back to advise you on:

• how to obtain a valuation
• whether we or the local authority wish to nominate a buyer.
• what costs you will incur

Can I obtain a mortgage?

Housing 21 are unable to give financial advice on obtaining a mortgage. You will need to contact a mortgage lender or independent advisor.

Housing 21 will require details of the proposed mortgage offer to ensure it meets our criteria and is by an approved lender.

How much will I get when I sell?

You will get the current market value of your share of the lease when you sell. From this sum you will be asked to pay any outstanding service charges and any charges relating to the sale or which are required by the lease.

For more information, please see our Leasehold Handbook.