Service charges are the payments that both tenants and leaseholders make for the services provided by Newydd such as grounds maintenance and the cleaning of communal areas. Details of what can and cannot be charged by Newydd and the proportion to be paid by each individual leaseholder will be set out in your lease.
Service charges are set annually and can vary from year to year and they can go up as well as down. Leaseholders will be sent an estimate of charges in February each year.
Your service charge includes a charge for buildings insurance. This ensures that you are covered for any structural damage to the building. Please note that this does not provide any cover for your personal contents. A copy of the insurance policy is available on request.
Newydd will regularly monitor the services provided by our contractors and will send out a satisfaction questionnaire to all leaseholders on an annual basis.
What happens if I don’t pay?
The requirement to pay your service charges is a legal obligation that is set out in your lease agreement. If you are having difficulty paying your charges please contact us as we may be able to help you with our money advice service and negotiate a payment arrangement.
Taking legal action to recover a service charge debt is always a last resort however where we have been unable to agree a payment arrangement we may contact your mortgage lender or seek recovery of the debt through the small claims court. This could result in a money judgement and a charge being placed on your home.
You should also be aware that that if you fail to pay your service charge you may also be jeopardising any building insurance cover that might be included within your payments.
There are some circumstances where Newydd could apply to the Court to end your Lease because you have broken the lease conditions. This could include non- payment of service charge arrears or where you cause a nuisance and/or harassment to you neighbours. Forfeiture is a severe remedy and as a responsible landlord we only use this where it is absolutely necessary to protect the interests of the Association, its tenants and other Leaseholders. Before applying for forfeiture for unpaid service charges we would have to satisfy a Leasehold Valuation Tribunal that the charges were reasonable and that the Leaseholder had made no attempt to pay them.