Final Accounts Glossary of Terms

The descriptions below may appear on your service charge final account statement and this will be the actual costs incurred by the TMO.

Please find listed definitions of the service charges provided, and of some of the other terminology used in the accounts. Further descriptions are provided in the Service Charges booklet of your Leaseholder Services Handbook.

The accounts are separated into three distinct cost areas; building costs, estate costs and other costs. This glossary is designed to be read in conjunction with the accounts, and is written in the same order as presented. Not everyone will have the same items listed in their accounts, which are tailored individually to each property, but the terms and descriptions provided in this glossary should still apply to each set of accounts.

1. Building Costs

The costs listed in the service charge account summary cover minor repairs that have been carried out separately from any major works schemes, which would be consulted with you separately under the terms and conditions of the Commonhold and Leasehold Reform Act 2002.

Building

Services provided that are specific to an individual property being either a block, unit, flat, or house.

Common Parts

Minor repairs that have been carried out to the parts of the building that you share the use of in common with other residents (usually these are internal areas). This includes items such as communal lighting units and internal communal doors.

Repairs to Building

Minor repairs that have been carried out to the structure of the building. This includes items such as windows and roofs.

Caretaking - Building

The share of costs associated with providing a caretaking service that is property specific and which monitors that property and any works, services or repairs carried out there.

Supervision - Building

The provision of the supervisors who manage the caretaking building service.

Porterage & Supervision

The provision of a porter service where expected under the terms and conditions of the lease agreement.

Internal Communal Repairs

Minor repairs to the parts of the building that you share in common with other residents (usually these are internal areas). This includes items such as communal lighting units and internal communal doors

Concierge – Building

The provision of a concierge security system or CCTV

External Site Work

Minor repairs carried out to the external areas to your building that you share the use of in common with other residents. This includes items such as boundary walls or fences and footpaths.

Garden Maintenance

Maintenance of any communal garden areas, such as planting flower beds, pruning trees, soft landscaping, etc., in accordance with the grounds maintenance contract.

Health and Safety - Pest Control

Costs associated with the removal or eradication of pests or vermin within your building and administered under the guidance of the block infestation procedures.

Contract Cleaning - Building

The cost associated with providing standard and regular contract cleaning to communal areas of the building.

Common Parts Electricity

The provision of electrical power and lighting to communal areas, including maintenance costs. This also currently includes the costs of providing mains electrical power (including maintenance) to the building itself and up to (but not within) individual flats.

Bulk Refuse Clearance

Removal costs relating to refuse that has been dumped in bulk at or around your building, block or estate that cannot be traced to any particular individuals.

Lift Insurance

Insurance premiums for any lifts at your block.

Lift Repair/ Maintenance

Repairs and maintenance of any lifts that exist in your building.

Paladin Maintenance – Building

Repair and maintenance of the communal refuse paladins serving your property.

2. Estate Costs

Where costs relate to an area used communally by more than one building, such as communal gardens or communal lighting, the amount is apportioned between the buildings concerned on the basis of the number of weighted rooms in each building.

Paladin Estate Maintenance

Estate based repair and maintenance of the communal refuse paladins serving your property.

Caretaking – Estate

The provision of a caretaking service that monitors each block/ estate and any works, services or repairs carried out there.

Supervision – Estate

The provision of the estate supervisors who manage the caretaking service

Lift Insurance – Estate

Estate based insurance premiums for any lifts in your block.

Concierge – Estate

The provision of an estate based concierge security system or CCTV.

Contract Cleaning – Estate

The cost associated with providing standard and regular contract cleaning to communal areas of the building and/or estate.

Health and Safety – Estate

Estate based costs associated with the removal or eradication of pests or vermin and administered under the guidance of the block infestation procedures.

Estate Lighting

Costs attributable to the provision of communal lighting across the estate.

Garden Maintenance

Maintenance of any communal garden areas, such as planting flower beds, pruning trees, soft landscaping, etc., in accordance with grounds maintenance contract.

Estate External Site Works

Minor repairs carried out to the external areas to your estate that you share the use of in common with other residents. This includes items such as boundary walls or fences and footpaths.

Estate Bulk Refuse

Removal costs relating to refuse that has been dumped in bulk at or around your estate that cannot be traced to any particular individuals.

3. Other Costs

Management Fee

The share of the costs of providing all management services (other than caretakers and supervisors) relating to leaseholders, such as Enquiry Management; invoicing and arrears control; surgeries etc. This is separate from the Management Fee associated with any major works schemes, which relate specifically to those schemes.

Ground Rent

Your annual ground rent, charged in accordance with the terms and conditions of your lease agreement.

Building Insurance

Your share of the insurance premiums relating to your building.

Cyclo Controlled Heating

Provision of the cyclo-contol system associated with the district heating system

District Heating Heating - Electrical

The annual planned maintenance of the district heating system Electricity usage associated with the heating system

Heating - Gas

Gas usage associated with the heating system

Heating and Hot WaterSystems

The cost of communal heating and/or hot water including fuel, maintenance and insurance

Boiler Repairs

The repair, renewal and maintenance of the district heating system to which you may be connected, calculated on the basis of previous accounts and planned major works and repair schemes

Boiler Insurance

Insurance premiums relating to the heating system

How to read the final accounts

The summary provides a breakdown by element of the costs related to your flat, separated into building, estate and other costs.

The summary identifies your property together with administrative and property references, and a note of your weighted room value. Weighted room values for each item of service charge are also shown. The amount due from you is calculated by taking the total expenditure figures, multiplying them by your flat’s weighted-room value, and then dividing that figure by the total weighted-room value for the block/sub-block/estate (each in turn as necessary). Please see the formula below to explain diagrammatically how the weighted room values are used to calculate your property share of the costs incurred. A concise explanation of the weighted-room formula is provided on pages 13 & 14 of the Leaseholder Services Handbook.

The total expenditure for your block/sub-block/estate is then shown under the heading “actual property scheme”, followed by the share apportionable to your flat under the heading “actual property share”. This is followed by the amount originally recharged to you as part of the estimates, and then the difference between your share of the actual costs and these estimated charges.

All of these amounts have been totaled so that the overall difference between the estimated charges that were invoiced to you and your share of the actual costs incurred is shown. This is the amount that will be credited or debited to your account as the final account adjustment.

Calculation Formula = (Cost x Property Weighted Rooms) / Sub Block or Block or Estate Weighted Rooms