Charges and insurance

Service Charges are the charges that leaseholders pay to cover the costs of running a building or estate as described in the lease.

We may provide the services ourselves, or we may contract them out to other companies.

Services which are charged are specific to your building and are defined in your lease, but can include:

• Cleaning communal areas - usually communal corridors, entrance halls, lifts, staircases etc.
• Grounds and estate maintenance - grass cutting, hedge and shrub trimming etc.
• Window cleaning - cleaning of communal windows and sometimes windows in apartments that cannot be cleaned safely by the leaseholder.
• Water - if there is a communal water supply.
• Electricity - used in communal areas for lighting, door entry systems, fire alarms etc.
• Servicing and maintaining the lift and any emergency phones.
• Servicing and maintaining door entry systems.
• Servicing and maintaining the CCTV systems.
• Servicing, running, and maintaining fire alarm systems and equipment.
• Servicing and maintaining emergency lighting.

How service charges are calculated

We estimate the cost of services for each building or estate before 1^st April every year, for following financial year.

This is calculated by looking at previous service charge costs and anticipating any changes to costs for the next year. For example, if we know that the insurance will go down or the electricity will go up, the annual budget will reflect that.

The charges are calculated by anticipating the full cost of all the services, and then dividing by the number of properties. These anticipated service charge costs are sent to all leaseholders.

At the end of each financial year, we work out the total income we have received from service charges and subtract the actual costs we incurred for delivering the services.

If the actual costs were less than we collected, we will reimburse you. If there is a shortfall, we will ask you to pay this.

We make no profit from service charges and knowing the impact of cost of living pressures, we work hard to calculate the fees as accurately as possible.

Each building or estate has its own service charge which reflects the environment there.

Sinking funds are used to help relieve the financial burden on leaseholders of paying for major works that may be required to their building. Your lease states what the sinking fund can be used for.

All leaseholders pay into the fund equally through their service charge and when planned or major works are needed, money can be drawn from the fund to help pay for it.

The amount paid into the fund is reviewed each year and calculated using our stock condition surveys which help us estimate the lifespans of major components like the roof, windows, and lifts.

The charge will be itemised on your annual budget and the moneys held in trust in an interest-bearing account until they are needed.

Typical planned works which the sinking fund would be used are:

• Roofs, guttering, pointing
• External drainage
• Communal lighting and power
• TV aerial systems
• Lifts
• Door entry systems and warden call systems (where fitted).

Management fees are calculated in the same way as service charges and are based on what it costs Irwell Valley Homes to manage the building or estate over that year. This cost is then divided equally between leaseholders.

We work hard to keep the management fee as low as possible. 

The fee covers several things and may include:

• Scheme inspections
• Communicating with residents and responding to enquiries
• Advising on lease or legal matters
• Managing contractors
• Planning and managing major works 
• Setting, monitoring, and managing the annual budget
• Arranging fire and other risk assessments
• Conducting regular safety tests and inspections
• Advising on anti-social behaviour and neighbour disputes 
• Helping with insurance and criminal damage claims
• Helping sellers and purchasers

These cover the costs of contracting a specialist, when necessary, for example an accountant to audit the accounts or a specialist fire risk assessment.

These costs are then allocated equally to all the residents in the service charges.

Please find our 2024 admin fees available click here to download.

We offer a few ways to pay your rent and service charges here.

All payment dates can be found in your lease and or statements from us.

If you are having difficulties paying your rent or service charges, or wish to discuss your account, we are here to help - please contact us.

If you are a leaseholder, we are responsible for insuring your building. We work hard to insure buildings at a competitive price. The cost of this is included in your service charge and itemised in the Annual Budget.

We will regularly review the quality of the insurance cover and cost to ensure it provides value for money. We will consult with you on any changes.

Most freeholders are responsible for insuring the buildings they own, but some freeholders also have a building insurance charge where we are required to insure the building. Please check your Deeds for further information.

Your Annual Budget will identify if we insure your building, but if you have any query in relation to this, please contact the Sales and Leasehold team: leasehold@irwellvalley.co.uk  or call 0300 561 1111

If you are a leaseholder, we are responsible for insuring your building. We work hard to insure buildings at a competitive price. The cost of this is included in your service charge and itemised in the Annual Budget.

We will regularly review the quality of the insurance cover and cost to ensure it provides value for money. We will consult with you on any changes.

Most freeholders are responsible for insuring the buildings they own, but some freeholders also have a building insurance charge where we are required to insure the building. Please check your Deeds for further information.

Your Annual Budget will identify if we insure your building, but if you have any query in relation to this, please contact the Sales and Leasehold team: leasehold@irwellvalley.co.uk  or call 0300 561 1111.

The cover

If your building is insured by us, our insurance policy covers the exterior and structure of the building, any communal areas, and some internal fixtures. 

It does not cover the contents of your home; this is something that you need to insure yourself to cover your belongings.

Click here to see a summary of the features, benefits, and limitations of our current insurance cover. 

Sub-letting your home? 

Before you sub-let your home, please ask for permission as per the terms of your lease. If you have not told us the property is sub-let, or we haven’t given permission, any future insurance claim, or even your mortgage, may be affected.

We also recommend you contact your insurer about any contents insurance you have taken out at the property.

Changes 

If you plan to make any alterations or improvements to your home, please contact us as these may impact on the insurance cover.

Damage

If you, or anyone living in or visiting your home, causes damage to the communal parts of a building, you are responsible for repairing the damage, or paying us to repair it.

If any damage is caused to your home because of an accident in an adjoining property, (for example a fire), then you can claim on the building insurance arranged by us.

In this scenario, please contact the Sales and Leasehold Team who will be able to tell guide you through the process. Please don’t start any repair work before the insurance company agree to pay for it, otherwise you may be liable for the full cost.

There may be an excess payable on any claim made through our insurance company.

Making a Claim

We hope you never have to make a claim, but if you do we aim to make it as easy as possible and will be here to support you through the process. Contact the Sales and Leasehold Team.

If you have any queries once you have completed and returned the claim form, please contact the buildings insurer directly. You will need to quote the full policy number in any communications with them.