Leaseholder - Hounslow Homes

Your ManagementAdmin Fee –what do you get for it?Your lease says you are liable topay for services that we provide,as the freeholder. In additionto charging you for directservices you receive (for examplecommunal repairs and groundsmaintenance), we are also entitledto recover a proportion of the‘on costs’ of administering thoseservices including:• contract management,• accountancy and billing• income recovery work• assignments• consent for physicalalterations and subletting• a fair share of generalestate management, offices,receptions, phones, etc.Costs include wages and alsoprofessional advisers where theircosts are not rechargeable toindividual leaseholders for specificservices. We also include a flat ratecharge for our NeighbourhoodWardens who patrol all ourneighbourhoods, nipping anyneighbourhood problems in thebud, responding to reports ofanti-social behaviour and workingclosely with the police.As freeholder, it is ourresponsibility to determine themethod of apportioning our‘on costs’ of managing andadministering services, providedwe act ‘reasonably’ – you, theleaseholders – have a legal rightto challenge us if you thinkour method or our costs arenot reasonable. The LeaseholdValuation Tribunal hearschallenges from leaseholderson the billing by freeholdersand though their decision is notlegally binding, we have alwaysfollowed the LVT’s directions.London Borough of Hounslowset its service charge billingpolicy more than 10 years ago.At that time, a time and motionstudy was undertaken and theactual cost of administeringservices was calculated, andapportioned to reflect the timethe organisation as a wholeactually spent on:• General administration• Right to Buy• Major Works, cyclicalmaintenance andredecoration• District Heating• InsuranceThe council decided that themanagement and administration‘on costs’ should be dividedbetween all leaseholders equally.(The cost of managing the otherspecific activities are dividedbetween all leaseholders whobenefit from those activities.)Your management andadministration charges haverisen as our costs have risen withinflation. We are aware that thiselement of our fee is unpopularbecause in many cases it isnot proportionate to the costof direct services and becauseleaseholders are not easily ableto control them. We thereforevaried the policy to introduce alower rate for these leaseholders.As part of designing anew Leaseholders Charter inHounslow, we are proposing toundertake a root and branchreview of the service chargepolicy, starting with a study ofcharging policies across theleasehold management sector.The CapitalInvestment andCyclical PlannedMaintenanceProgramme2013/2014The Capital Investment andCyclical Planned MaintenanceProgrammeThe Capital Investment andCyclical Planned MaintenanceProgrammeThe Capital Investment andCyclical Planned MaintenanceProgrammeWe are currentlyin the processof deliveringa three-yearCapitalProgrammeon behalfof theCouncil. 2013/2014 isYear Two of that programmeand information on theaddresses that are includedhas been sent out to allresidents. Works to leaseholderproperties in 2013/2014 willlargely be restricted to CyclicalMaintenance (ie external andcommunal decorations andassociated repairs). In additionto that we expect to deliver a liftrefurbishment project at Hunterand Belvedere Houses. Details ofthe programme can be found onHounslow Homes website.Leaseholders who are affectedby the programme will find anestimate for the cost of worksincluded in the annual servicecharge estimates in March 2013.Where Section 20 consultation isrequired, this will take place afterthe estimates have been issued,but before works commence.Work to develop the five-yearprogramme, which forms partof the Council’s 30-year BusinessPlan, is well underway. Addressdetails are being prepared forissue to leaseholders once theBusiness Plan and programmehas been set by the Council (inMarch).The Capital Investment andCyclical Planned MaintenanceProgramme2013/20142013/20142013/20142013/2014