Paying Your Rent
What is a Service Charge?
Rents Information
Payment of Service Charge and Rent
Can I claim Housing Benefit?
What happens if you don't pay?
Service charges are your contribution to the costs of services provided to your property e.g. visiting warden, repairs, and buildings insurance. Your lease will explain which services "Johnnie" Johnson Housing Trust must provide and for which you have to pay. It may also tell you how costs are divided amongst leaseholders and how they are to be charged.
Service charges vary according to the costs incurred in providing and managing the services to your home. Service charges may both increase and decrease.
Some service charges may include contributions to a provision for future maintenance.
The service charge is payable from the date of completion of purchase and remains payable until your property is sold.
An annual meeting is held for each scheme to discuss the proposed budget for each financial year, and audited accounts are provided within 6 months of the end of the year. In addition, if required, the Trust will make available to residents copies of invoices and documents relating to the running costs of the scheme.
You will be advised of any change in your service charge at least 4 weeks before the increase is due. Service charges are calculated to reflect the costs that we estimate will be incurred in the next financial year and are payable calendar monthly, falling due on 1st day of the month.
We hope that leaseholders will be satisfied that the service charge for their scheme is reasonable—this is a legal requirement on our part. However, if you are not satisfied you can apply to your local Leasehold Valuation Tribunal to ask them to decide whether your service charge is reasonable. You will have to pay the cost of your application.
Typical services provided at our developments include:-
- 24 Hour warden call service
- Gardening to communal areas
- Window cleaning
- Cleaning of communal areas
- Repairs to external parts of the building and communal areas.
Rents are payable on properties where you have a shared ownership option in your lease. The rental charge is based on the difference between the percentage equity, which you own, and the maximum, which can be purchased under the lease (normally 75%). The lease states the limit by which rents can be increased each year (normally the retail price index). You will be advised of any change in your rent at least 4 weeks before the increase is due.
Payment of service charge & rent
You can pay your service charge and rent in a number of different ways.
- We will be happy to send you a Direct Debit form to enable you to pay by this method, direct from your bank account. This is our preferred payment method and is the easiest to use. You can view our Guide to Paying by Direct Debit here.
- You can pay by standing order– we will provide you with a standing order form on request. Please note that with standing orders, when the amount due changes, you need to change the amount of your standing order by contacting your bank.
- You may pay cash at a Post Office through the Giro system. If this is your preferred method, please request a Giro swipe card. The Post Office will issue a receipt when you pay with your swipe card.
- You may pay by either cheque or cash at the Trust’s Regional Offices or at our Head Office in Poynton. Cheques or postal orders should be made payable to “Johnnie” Johnson Housing Trust Ltd.
- If you are eligible for Housing Benefit you can arrange for it to be paid direct to the Trust, by the local authority. If only part of the total charges is covered by Housing Benefit, you will need to pay the rest using the other methods payment outlined.
You may be entitled to receive Housing Benefit from your local authority to assist with your rent payments. You may also be entitled to Council Tax and other benefits. Your Housing Manager will be able to provide you with some general benefits advice and refer you to the appropriate department of your local authority for further information.
What happens if you don’t pay?
JJHT has a duty to act prudently in all financial matters. Where residents fail to pay their rent and service charges this has a detrimental affect not only on the finances of "Johnnie" Johnson Housing Trust, but on individual scheme bank accounts. Therefore, "Johnnie" Johnson Housing Trust is bound to pursue debts with due diligence.
If you are experiencing difficulties in paying your rent/service charges then please contact your Housing Manager to discuss your problem. If your income reduces you may be entitled to help with paying for your rent, service charges, mortgage interest payments and/ or Council Tax.
Claims are not usually backdated so it is very important to claim as soon as your circumstances change. You may also receive help with financial difficulties from a Citizens Advice Bureau or a Legal Advice Centre.
If arrears continue, some or all of the following actions can be taken, depending on individual circumstances:
- The Trust may make contact with your mortgage lender, who has a legal interest in your property. To protect this they will often pay any rent arrears to prevent repossession. These costs will be added to your outstanding mortgage balance.
- The Trust may apply to the Small Claims Court for a debt judgement. This will result in court costs and may affect your ability to obtain credit.
- The Trust may apply for forfeiture. This means that we will serve you with a Notice Seeking Possession and ultimately ask the Court to allow us to take back your property.
