Service Charges

Phoenix will levy charges for a range of existing services. These charges will be for services provided at the time of transfer. Examples of such charges are as follows:

• caretaking
• grounds maintenance
• communal lighting
• lift
• entry phone
• communal heating and/or water costs– where heating or water are supplied to the resident's home from a central meter and the utility provider does not bill the tenant  directly
• the collection of charges for concessionary TV licences.
• repairs and maintenance

Phoenix will continue to offer access to contents insurance to any interested residents and collect the premiums along with service charges.

Linkline Charges

Residents that receive an emergency alarm service from Linkline and are in receipt of eligible benefit(s) will not have to pay towards this service. For any leaseholder who does not qualify for this service to be provided without cost to them, Phoenix will set out the weekly charge to be collected with the service charges.

Phoenix may introduce new services in future which may be as a result of requests from or after consultation with leaseholders; for which service charges may be payable. Phoenix will give at least 28 day's notice of any proposal to introduce a new service charge.

The consultation process of any new service charge will be rigorous and open. All relevant queries raised against such an introduction will be duly considered by Phoenix before the introduction of the new service charge

All service charges will be raised in accordance with the terms of the lease.

Phoenix will prepare timely and accurate information about the cost of services for which service charges are due.  It will make available to leaseholders an actual statement of account within six months of the end of the accounting period. Leaseholders will be provided with an estimate of the following years charges once a budget for that years expenditure has been agreed, and in accordance with the requirements of leaseholders leases.

Phoenix will provide leasehold management information on a quarterly basis to the leasehold representative body.

Over Payments

All over payments of service charges by leaseholders will be returned within a reasonable time following an agreement between Phoenix and the leaseholder that there has been an overpayment by the leaseholder.

Rechargable repairs service

Phoenix will offer an out of hours emergency repair service to leaseholders which may include providing additional security measures, in cases of anti-social behaviour for example.  Leaseholders will be re-charged for the cost of any repairs, security works and administration carried out by Phoenix or its contractors.

Service Charge Bills

Estimated service charge bills will be sent out by early April and cover the 12 months for 1st April in the current year to the 31st March in the following year.

When preparing the estimated service charge bills Phoenix will look at the actual cost for each service in the previous year and the budget for the service in the coming year, in order to ensure that the estimated bill is as accurate as possible.

Phoenix will send leaseholders a statement of the ‘actual cost' of providing each service in the previous financial year within six months of the end of the accounting period.

Under the terms of the lease bills should be paid within 21 days of the invoice date. If leaseholders cannot afford to pay the bill in one lump sum, arrangements will be offered to pay by up to 10 monthly instalments. 

Service Charge Collection

Leaseholders will be able to make their service charge payments in a number of ways including:-

Phoenix will also continue to explore and develop ways to make it easy for leaseholders to pay for major works and service charges, for example by telephone and on-line.

Service Charge arrears

Phoenix will send leaseholders, details of their service charge accounts annually. Any leaseholder who falls behind with payment will be contacted promptly by Phoenix staff and appropriate action for arrears recovery will be taken.   Phoenix staff will arrange an appointment to agree a repayment plan.

Leaseholders will be offered advice about their housing and other benefits, to assist them maximise their income and meet their service charge liabilities.

In the event that a leaseholder disputes a service charge Phoenix will provide a dispute resolution mechanism for the service charge to be reviewed and the leaseholder's case to be considered. The aim of this process will be to try and resolve the matter without the need for any legal action either by Phoenix or the leaseholder.

Where Phoenix are satisfied that appropriate courses of recovery action have been taken by staff and service charges remain unpaid legal proceeding will be considered.  Legal action may include money judgement orders,  or following persistent failure to pay service charges, action for forfeiture, taking account of the requirements of the Housing Act 1996.

Major Works – Costs and payment 

As a freeholder Phoenix is responsible for maintenance of the communal and structural parts of the building and communal parts of estates such as road, communal gardens and parking areas in the Phoenix area.

Leaseholders will be required under the terms of their lease to pay a proportion of the costs of the upkeep and repairs of these areas.  This will include a management charge of approximately 10% and an additional amount for any professional fees, such as consultants surveyors, engineers or architect.

Phoenix will, in accordance with its legal obligations its consultation and communication strategy, fully consult with all leaseholders about proposed major works to their property and/or the estate where the cost is above the prescribed amount.

Leaseholders will not be able to opt out of structural works such as window replacements, unless Phoenix is satisfied that such works have already been done to a satisfactory standard. However Leaseholders may be required under the terms of their lease to make a contribution towards the overall costs of the structural works to their building as incurred by Phoenix.

Phoenix will provide leaseholders with full details of the proposed works, including estimates for the total cost of the works and estimates for the individual leasehold contributions before the works commence.  Leaseholders will be charged for works in accordance with the terms of the lease.

Phoenix will usually raise major works invoices to leaseholders after the works are completed and the contractor's account has been finalised.  Invoices will be raised within 18 months of the costs being incurred. Payment will be required within 21 days in accordance with the terms of the lease.  These major works invoices will be sent out separately from the annual service charge bills.

Phoenix will aim to recover from leaseholders all the moneys due from them towards the cost of major works.

Payment for major works can be made by instalments.  Phoenix staff will be able to make arrangement to accept payments by instalments at any time after leaseholders are notified that the works are to take place.

Payment by instalments will be available interest free until 10 months after the bill has been raised, and where agreed with Phoenix over a longer period.

Phoenix will provide leaseholders with the opportunity to come to a payment arrangement, if the leaseholder does not make payment as agreed then Phoenix will review the available options.  These options may include writing to the mortgage lender and where it has still not been possible to reach an agreement acceptable to both the leaseholder and Phoenix then recovery action via the courts may take place. 

In the event that a leaseholder disputes a major works charge Phoenix will provide a dispute resolution mechanism for the charge to be reviewed and the leaseholder's case to be considered so at to reduce the need for any legal action either by Phoenix or the leaseholder

Phoenix will also take recovery action if a leaseholder fails to pay the major works bill and does not contact Phoenix.

Payment Difficulties

Phoenix will take a sympathetic approach to leaseholders in genuine financial difficulties and staff will be trained in debt counselling. If leaseholders are unable to  pay the major works charge through instalments Phoenix will explore alternative payment options available to the leaseholder, and provide advice to maximise their income and prioritise priority and non-priority debts and may include referrals to specialist debt advice agencies.

Phoenix will assess each case individually and depending on the leaseholder's circumstances Phoenix may consider:

Discretionary Scheme to Assist Leaseholders with Bills in excess of £10,000. 

In cases of exceptional financial hardship where the leaseholder occupies the property as their principal and only home and the major works charges to any one leaseholder are over £10,000 in any five year period, Phoenix will seek to use its discretion to reduce the major works charge  This would be subject to the approval of Phoenix's Board and availability of funding. 

Senior Phoenix Officers will make recommendations to the Phoenix Board on each case according to its merits.  The Phoenix Board would then make the final decision on whether or not the charge will be reduced. 

It should be noted that:

Leaseholder Improvements

Any leaseholder wishing to carry out improvement works to their home will first be expected to submit full details of the proposed works, including evidence of planning permission where required.

The decision on whether to grant a leaseholder permission to carry out the work will be made taking into account whether the proposed improvement will:

And take into account other relevant considerations.

If permission is refused, Phoenix will set out the reasons for refusal in writing to the leaseholder.

Breaches of the lease

Phoenix will take appropriate action whenever it becomes aware that a leaseholder is acting in breach of the terms of their lease, which may include:

In all such cases Phoenix will serve notice on the leaseholder requiring them to remedy the breach.  If the breach continues further action will be taken, which may include seeking an injunction or taking further action against the leaseholder for the forfeiture of their lease.

Private Sector Leasing Scheme

Phoenix will explore the possibility of operating a private sector leasing scheme which involves leasing properties for a set term.  This would enable Phoenix to increase the stock it manages and setting minimum standards for properties under these schemes before they are let.  It would ensure such properties are well managed and that the tenant know their responsibilities in terms of anti-social behaviour.

Equality and Diversity Implications

There are no specific equality and diversity implications for this policy, although Phoenix will monitor the effectiveness and implications of this policy to ensure that statutory requirements are met and that all tenants are treated equitably and fairly.

Responsibility

Phoenix's Director of Housing is responsible for the effective implementation of this policy.

Phoenix's Director of Housing is also responsible for ensuring that all appropriate staff are aware of and are trained in Phoenix's Policy and associated procedures.

It is the responsibility of the Board of Phoenix to take the appropriate decisions in relation to leasehold management in accordance with recommendations from the Director of Housing and the Chief Executive of Phoenix.

The Phoenix Board will receive reports which will consider whether procedures are being correctly followed by employees.

Consultation

Phoenix will consult with all of its leaseholders in accordance to its legal obligations and its resident Participation and Consultation policy.

Monitoring and Review

Phoenix takes seriously its commitment to ensure that leaseholder are receiving a high quality management and maintenance service.

This Policy will be reviewed on an annual basis to ensure that it continues to take account of Business Plan considerations, legislative changes and Housing Corporation guidance.

Associated Documents

Equality and Diversity Policy

Customer Care Policy

Customer Care Procedures

Resident Participation & Consultation Policy

Anti-social-behaviour policy

Environmental maintenance policy

Caretaking policy