Hazelvine
Accounts FAQ's
When will I be billed?
On account service charges are payable in advance and the date the charges are due are detailed in your lease. Normally the billing dates are 1st January and 30th June but some sites may be billed on quarter days. Ground Rent charges are normally billed on the 1st January.
When is the payment due?
The due date is the start date for the period of the charge. We will send you the demand in advance of this date so that you have time to make sure funds are available.
How can I pay my account?
Accounts can be paid by cheque to the address and bank account detailed on the demand. We also accept payments by debit or credit card. We offer facilities to set up direct debits to pay service charges either when due or in ten instalments during the year. (Ways to pay)
What is a service charge estimate?
The service charge estimate is the basis on which the on-account payments for service charges are calculated. We prepare a prudent estimate for the upcoming year during October/November in each year or a couple of months in advance of the year end if your development has a different year end to December 31st. The service charge estimate will be approved by the directors of your management company (Company Secretarial)and then sent to you for information. Where there is no management company the service charge estimate will be sent to the owners for information and comment.
What is a balancing charge?
Liability under the terms of your lease in respect of service charges is for you to pay your share of the actual costs for the accounting period. The on-account charges already billed to you are compared with your share of the actual costs calculated from the service charge accounts for the year (link) which accounts will have been approved by an independent accountant (link). The difference between the two sums is the balancing charge and this can be either a debit or credit depending on the actual expenditure for the year. The amount will be posted to your account as soon as is practical and can be paid by you on receipt of the revised demand (if an additional charge) or deducted by you from your next payment if a credit.
What is the difference between freehold and leasehold and why do I have to pay service charges if I own the property freehold?
Leasehold properties are owned by the landlord and leased to you for a pre-determined period “the lease” (link) (often 125 years) and you will pay ground rent as detailed in the lease. Freehold property is owned by you and not subject to any third party interest however the terms of the transfer document (TP1) (link)will specify your liability to pay service charges. Occasionally there will be a separate rent charge deed (link) which is a separate document detailing service charge provisions.
Why is interest on late payment charged if I am late with my payment?
The provisions within the lease for interest on late payment are intended to compensate those owners who pay promptly as your funds will not be in the bank account for the development earning interest. There is normally a grace period within the lease during which interest will not apply but if you exceed that period interest will be calculated from the due date. The typical grace period is 14 or 21 days.
Why are there additional charges if I pay by credit card?
There are additional charges if you pay by credit card because the credit card company make charges to us which have to be recovered and these charges can not be a valid charge to the development because they are specifically in respect of your payment.
Why are there additional charges if I pay in ten instalments by direct debit or using my own computer banking?
The additional modest annual charge for paying by instalments is in respect of the additional administration for dealing with ten payments instead of two. Once again these charges are not a valid charge against the development as they are specifically in respect of your payments.
Can I withhold payment if I have a maintenance issue?
The answer to this is NO. The service charges and ground rents detailed in your lease are contractual payments and must be made. We will deal promptly with any issues regarding the maintenance and appearance of your development but we need to have the funds to meet these ongoing expenses (link reporting a maintenance issue)
Why do I not receive a statement of account detailing outstanding charges?
We do not send regular statements of account because service charges and ground rents are contractual payments and should be made in the terms specified in your lease or transfer document.
What will happen if I do not pay my on-account service charges?
Failure to pay on-account service charges or ground rents will put your ownership of the property at risk. Failure to pay will also incur additional charges in respect of the collection procedure which charges add to the amount owed. It is in your interest to settle all charges promptly.
Why must I advise you of a new billing address if I do not live at my property?
The Landlord and Tennant act requires you to give a suitable UK address for correspondence failing which we are obliged to send all communications to the property address. We find in practice if you have let out your property that more often or not the tenants will not pass the letters on to you.
Why is there a sub-let fee if I let my property out?
The sub-let fee is detailed in the lease for your property and is again a contractual payment due when invoiced. The fee is required so that we can check the tenancy agreement on behalf of the landlord to ensure that it does not contravene the provisions of the lease.