CouncilLeases & service charges
Your lease tells you your responsibilities as a leaseholder of Tower Hamlets Council, and our responsibilities to you as a landlord.
- What is a lease?
- What are service charges?
- Service charge queries
- What is ground rent?
- How do I pay my service charge invoice?
- What happens if I can’t pay my service charge invoice?
- What happens if I don’t pay my service charge invoice?
What is a lease?
A lease is a private contract between the leaseholder and the landlord (the council). It sets out the responsibilities of the two parties, what the leaseholder has contracted to do, and what the landlord (the council) is bound to do.
As a leaseholder you pay towards service charges, major works and ground rent
What are service charges?
Under the terms of your lease, you have to pay a contribution to the landlord’s costs of providing a service or amenity to your block or estate. This is called a ‘service charge’.
The service charge normally covers things such as general maintenance, repairs, building insurance, lifts, lighting and cleaning of communal areas.
Service charge queries
If you have a query about your service charges, including major works, first discuss the problem with the service charge team. They will try to sort out any mistake or misunderstanding within a specified time.
If an agreement cannot be reached, there are a number of options available to you:
- The council’s complaints procedure: To report a complaint directly to the council please contact the corporate complaints team on 020 7364 4162
- The home owners internal complaints procedure: The home owners internal complaints procedure is under review, and new content will be posted shortly. For further information please contact the Home Ownership Service.
- The leasehold valuation tribunal: Both the council and the leaseholder have the right to ask the leasehold valuation tribunal (LVT) to review the reasonableness of a charge. The LVT looks at the evidence and then makes a decision. The decision of the leasehold valuation tribunal is legally binding.
What is ground rent/rent charge?
Ground rent or rent charge is the fee that you pay for the ground that the building stands on. The amount you have to pay, and when you have to pay it, is specified in your lease.
How do I pay my service charges invoice?
How do I pay my service charges invoice?
You can pay your service charge bill a number of different ways:
- One payment of the whole amount by cheque or by cash at the post office or the council’s cashiers office at the Bethnal Green One Stop Shop, LEB Building, opposite Bethnal Green tube station
- 10 (or less) monthly payments by bank standing order
- By instalment slips over 10 (or less) months which will enable you to pay at the post office or the council’s cashiers office at the Bethnal Green One Stop Shop, LEB Building, opposite Bethnal Green tube station
- By debit card by telephone on 020 7364 3800 (please have your account details to hand)
Contact our incomes team for further details.
Can I spread my service charge payments?
If you wish to pay service charges, including those relating to major works, by instalments, contact our incomes team. They will be happy to work out a payment plan with you.
What happens if I can’t pay my service charges, major works or ground rent invoices?
If for any reason you are unable to make payment, please contact the arrears recovery team straight away.
If you do get into arrears with your service charge, major works or ground rent, our aim is to reach agreement with you as soon as possible on how you can clear your arrears.
If we feel that you may qualify for benefits, we will refer you to the appropriate services for help and advice.
The council also has a partnership agreement with the Tower Hamlets Citizens Advice Bureau (CAB). They provide confidential advice and assistance on financial matters and can help you apply for other welfare benefits.
What happens if I don’t pay my service charges, major works or ground rent invoices?
As a last resort, the council can forfeit the lease and repossess your home.
Contact us & further information
For further information on the above, or any other issues you may have concerning leases and service charges, please contact your home ownership section.
Pid No: 156
