Leaseholder rights

2016 / 17 Management Fee Increase

Can I contact CBC to discuss this?

We will be available to take your calls specifically on this issue from Monday 7 March to Friday 18 March 2016 from 10am to 11am and 2pm to 3pm.

We will also be holding 2 open evenings for you to come and meet with us face to face:

Monday 7 March 2016: Watling House, 4pm to 6pm

Thursday 17 March 2016: Watling House, 4pm to 6pm

What was the management fee and what is it now?

The management fee for the last completed financial year, 2014 / 2015, was £112.76.

The management fee for the forthcoming financial year, 2016 / 17, is £403.08.

However, as this represents a large increase, the figure has been capped at 80% of the total costs, meaning you will only be charged £322.46.

What is a management fee?

The management fee is the cost of managing and administrating leaseholders. This includes staff time in calculating charges and dealing with queries, office space, paper, printing, hiring of venues, etc.

Why am I being charged for this?

Management fees are a standard part of any lease. You are required, by the terms of your lease, to pay for the costs of providing the services you receive.

What staff am I paying for?

Home Ownership Team staff for calculating and processing service charges, sales enquiries, lease queries, general first-point-of-contact etc.

Estates Officers for inspections of the estates and anti-social behaviour.

Buildings Surveyors for major work contracts including cyclical work programmes.

Day to Day Repairs Team staff for ad-hoc repairs, inspections and reporting.

Housing Systems Team staff for accurate and up to date information 

Management of all these Officers.

What administration am I paying for?

The Leaseholders' Manegement Fee covers the following administration:

  • estimated service charges letters
  • actual service charge letter, following reconciliation of accounts
  • payment reminders
  • newsletters
  • Section 20 / Section 166 Notices

Why has the management fee increased so much?

The management fee has been calculated to accurately reflect the cost of both running and supplying the service we provide to leaseholders.

Previously, the management fee did not reflect the actual costs of what it costs to provide this service.

Why do I have to pay and CBC tenants don’t?

CBC tenants are not homeowners and, as such, make their contributions to the management of the Housing Service by way of a weekly rent instead of quarterly bills. All management, maintenance and administration is factored into the figure that they pay on a weekly basis.

What if I don’t pay it?

Your lease is a contract between you and your landlord (CBC) and sets out the contractual obligations of the two parties. It sets out your obligations regarding the contribution to the costs and of maintaining and managing the building under the terms of the lease.

If you do not pay, and the landlord can satisfy a tribunal that the charges are properly due and reasonable, then we can bring forfeiture proceedings by applying for a court order.

If the landlord is successful, they can ask for a county court judgement for payment which can affect your ability to obtain credit.

What if I am still not satisfied and believe the charges to be unfair?

Challenging service charges: in the first instance, please seek advice from the Leasehold Advisory Service (link opens in new window) (LEASE).

Any challenges must be made through the First-Tier Tribunal – details can be found on the LEASE (link opens in new window) website.

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