Service charges cover maintenance and services. They are for the communal areas of your property. These services are provided by us (the council) as the landlord.
Examples of these services include:
- cleaning of the communal windows
- caretaking services
- ground maintenance
- insurance
- minor estate improvements
- communal electricity and gas.
We collect your service charge once a year. We collect it after the year ends. We send leaseholders a bill in the summer. The bill is for spending from the last financial year.
For example, if we invoice you in July 2024, it would be for costs from 1 April 2023 to 31 March 2024.
Ground rent is a fee set by us as the freeholder. It is a small rent fee payable each year for the use of the ground your property is on.
Ground rent is separate from service charges. Currently ground rent is set at £10.00 per year. It may form part of your annual service charge bill and may increase over time.
Make a payment online
To make a one-off service charge payment online you will need:
- your name and address details
- your 9-digit invoice number.
Select invoice payers from our list of payment options. Please make a note of your transaction reference.
Set up a Direct Debit
To set up a Direct Debit you will need to:
- complete the Direct Debit form
- email your form to: leaseholdandrtbservices@harrow.gov.uk.
We will let you and your bank know if there is a change to the amount you have to pay.
As it can take time to set up Direct Debit payments, make your first payment by another method. For example by phone or online.
Please check your account on the 1st or 15th of the month. Do this to ensure that your Direct Debit has been paid.
If you need help to set up a Direct Debit over the phone call 020 8424 1125.
Pay by bank transfer (BACS)
You can pay your service charge by BACS or by setting up a standing order.
You will need to provide our bank details and your invoice number as the reference.
London Borough of Harrow bank details:
Account number: 47345098
Sort code: 60-10-10
If you need it, our bank address is: NatWest, 315 Station Road, Harrow.
Late payments service charge payments
When a payment request is made, the leaseholder must pay their fee within 28 days. This is stated on the terms of your lease. After 28 days, the debt is considered outstanding. We will issue a reminder letter before taking any legal action.
If you cannot afford your service charge
If you think you will struggle to make a payment please contact our Leasehold Team. You should contact them as soon as possible or within 28 days of the invoice date.
We can consider setting up a payment plan over 10 months. We may need to take details of your income and expenditure.
If you already have a payment plan you still need to contact us within 28 days of this invoice date. We will discuss with you how this bill can be paid. We will not put this new bill on your payment plan.
If you do not think you'll be able to pay off the arrears in 10 months, contact our Leasehold Team. We may make an appointment to discuss your arrears.
We will need to see evidence of your income and expenditure. We will do our best to come to an agreement to pay the debt. To avoid court action the debt must be paid off within a reasonable period.
The arrears recovery process
The following is the process if payment is not made after 28 days of the invoice:
- Reminder letter one is issued. This gives the leaseholder seven days to make a payment or an arrangement.
- Reminder letter two is issued. This gives the leaseholder a further seven days to make a payment or an arrangement.
- Letter to lender. A letter is sent to your lender giving them 14 days to confirm they'll clear the debt on your behalf.
- Prepare for legal. If your lender refuses to pay or if you don't have a lender registered we'll begin legal action.
The legal process
- Letter before action is sent to the leaseholder. This gives you 30 days to respond.
- Claim is issued. If there is no response from you, we will apply interest and their costs at this point.
- Default judgement. No response is received from you. If you contest the debt, the Court will provide directions for trial.
- No payment of debt after 14 days. Enforcement action will proceed.
Service charge enquiries
When do I have to pay my service charge bill?
Under the terms of your lease payment is due within 28 days of the invoice date.
I do not agree with something on my bill, how can I dispute it?
Please contact the Leasehold Team. You will need to provide us with details of the charge you are disputing. You need to do this within 28 days from the invoice date.
To investigate your enquiry, specify the date(s) you think a service was not provided. The relevant service manager will investigate this. They will inform the Leasehold Team if a service was not up to standard. If they agree it was not a good service, they will organise a pro rata refund.
Refunds are credited to your service charge account within 10 working days. During your investigation, you need to keep paying your bills. Failure to do so may result in debt recovery action being taken against you.
Why has my service charge has increased from last year?
Some costs increase each year. We continue to improve our budgeting process. We have identified some legal costs to be recovered from leaseholders. This is under the terms of the lease.
Why do I have to pay a management fee?
This covers the cost of running the Leasehold Team, including:
- responding to enquiries about your lease
- dealing with lease breaches such as water leaks
- calculating the service charge
- resolving disputes.
Why do I have to pay for minor estate works?
This charge is for minor improvement works carried out to your estate. We do these works in consultation with tenants and leaseholders.
This can include installing fences. It can also include adding notice boards or improving bin areas.
What happens if I have a credit balance on my service charge account?
You should deduct the credit from your service charge bill. Then, pay the remaining balance.
Can I have the credit balance on my service charge account refunded?
If you have a credit balance after paying this year’s service charge bill you may ask for a refund. You should put your request in writing to our Leasehold Team.
Submit a leaseholder enquiry
If your enquiry has not been answered above, contact our Leasehold Team below.