Your service charges explained

Understanding service charge types

As a Moat customer, you’ll pay one of three types of service charges: a variable service charge, a fixed service charge or an actual service charge. You’ll find information on which type you pay in your lease or tenancy agreement.

The way we calculate your charges depends on the type of service charge you pay.

Variable service charges are based on the actual cost of service you receive. We estimate your charge based on spending from the previous year. We factor in any expected changes to services, contract costs, VAT and inflation or any expected communal works coming up.

We estimate these charges in February, and then confirm in September how much was actually spent.

How we calculate your September year-end statement

At the end of the financial year (usually 31 March), we will check the actual service charge spend for your communal maintenance and compare it with the estimated charges you’ve paid during the year. Once this comparison is complete, it will show whether the actual spend was more or less than the estimated charges. You may owe us money, or we may owe you money; we will send you a year-end statement to show you any difference, usually by the end of September each year.

If we spend less than we estimated

If we spend more than we estimated

Paying deficits or surpluses

For buildings with managing agents

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If you have a managing agent

You may live in a building with a managing agent who carries out some or all communal maintenance services on behalf of the freeholder of the building.

The managing agent will send us their year-end accounts and we will pass these costs on to you via your service charges. We currently charge a 5% management fee for dealing with the managing agent on your behalf and completing all related service charge administration.

Find out more about managing agents

Gathering your feedback

If we provide services to the building you live in or the areas surrounding your home, we’ll also gather your feedback in a number of ways to make sure you’re satisfied with the services you pay for:

Through our Real Time Customer Feedback (RTCF) system, we send you a text message whenever we provide a service. We ask you for a satisfaction rating and why you’ve given that score.
We carry out telephone and online surveys with a random selection of customers, and these give us a more detailed picture of satisfaction levels.

Through our Section 20 process, we consult with you about changes to services, repairs, maintenance and improvements covered by your service charge. Your feedback shapes the requirements we set for suppliers.

We use your feedback to identify and address areas for improvement, working closely with our suppliers.

If your building is run by a managing agent, we take your queries or concerns forward with the managing agent to make sure they are addressed.

Have any further queries?

What do you do to ensure service charges are good value for money?

We work with our colleagues at Moat, as well as with external agencies, to ensure the cost of services (including major works) to your neighbourhood is reasonable. For example, our communal cleaning and grounds maintenance suppliers are selected through a comprehensive tender process. During this process, we evaluate how they provide good value for money.

For our homes with managing agents, we closely monitor their service levels and expenditure. Managing agents provide us with invoices for all services which our Finance team will check. We challenge costs we think are unreasonable and also have the right to make official complaints against the managing agent or take them to the First-tier Tribunal.

Can my service charge be covered by Universal Credit?

Does Moat make any profit from service charges?

I bought my property 2 months ago. Why does my statement show charges for the whole year?

If you moved into your home between 1 April and 31 March of the following year, you’ll pay service charge costs for the full year. You can contact the solicitor who acted on your behalf when you purchased your property, to request the former owners’ share of the costs. It is common practice for solicitors to hold this money (known as a ‘retention amount’) for this purpose.

What can I do if I think the charges are unreasonable?

We always aim to provide a service which meets the needs of our customers and also offers value for money. However, if you feel we’re not providing you with the service you expect, please contact us. We can make mistakes and we’ll look into your query and get back to you.

If you’re dissatisfied with our response, you have the right to appeal to the First-tier Tribunal (Property Chamber) which will determine if the service charge is reasonable. To do this, you’ll need to complete an application form and return it to the appropriate regional Tribunal office. Please note that you will need to pay a fee to submit an application. You can find more information on this process at lease-advice.org.

Why does my service charge change from year to year?

I own a freehold house. Why am I paying a service charge?

Why do I pay into a Future Repair Fund (reserve) if I pay service charges?

I live in a shared ownership house with no communal services. Why do I pay service charges?

We are obliged under the terms of your lease to ensure your home has adequate buildings insurance. We currently collect this cost monthly via your service charge. Once you own your home outright, we will stop charging for this as you will become the freeholder and be responsible for your own buildings insurance. Please see our insurance page for more information.