Service Charge Challenge for 23/24 bills

Service Charge Comparison Spreadsheet

We continue to collect data on service charges across apartment blocks on the estate.  You can access the comparison spreadsheet here.  (this is the spreadsheet preseented at the Open Meeting on 21 November).

Use this to see whether your charges are reasonable (i.e in line with other blocks) and to challenge exceptions where you seem to be paying more.  Also use the spreadsheet to check if certain regulatory checks have occured (e.g. water lesting for legionaire disease).

Finally check out the rules of thumb for cleaning charges and block communal electricity charges.  We, the CMRA, are challenging why there is such a difference in cleaning costs per block.  We feel that it is important for us to understand that is normal communal electricity use. so we can spot exceptions.   We have used electiricty rates for 23/24 to identify the KWH usage; you can use these data to see whether the charges for your block are reasonable; look for charges in other similar sized blocks (e.g. duplex apartments,  blocks with similar numbers of apartments and lifts ).

If you have spotted errors/exceptions then email toL&Q at contact@lqgroup.org.uk .   Be clear with the evidence that is the basis of the error and what you expect L&Q to do about the error.  Use this route to get more data on exceptions (e.g. £3000 for bulk rubbish in one year!).

Finally if you have data please share this with the CMRA for our collective history so we can build up patterns.  Please email secretary@chobhammanor.org and we will provide locations to upload data.  If you have the time to load data into the spreadsheet directly then please say and we will provide appropriate access.

If you have not requested your invoices for 23/24 and wish to then please see below.  You have until 31 March 2025 to do so.

(updated 22 Nov  2024)

Background

As residents we have legal powers to expect L&Q to provide transparency in the charges placed upon us.  L&Q are obliged to support this operation and we have recourse through the Housing Ombusdman should they fail to do so.

In practice this means inspecting the invoices for services provided for the estate and for our individual blocks.  Its not always easy as costs are sometime aggregated across the very large L&Q contracts and we have to work to figure out our piece- not always transparent.  New regulations came into effect recently which increases their obligation to transparency, we will see in this cycle whether that makes any difference.

The Components

• The reconciliation statement (that yellow piece of paper received around end of September)

• The Invoices.  Historically these have comprised two parts:

  • The overall invoice (which is the aggregate contract invoice).

  • A Comma Separated file/spreadsheet listing the charge that applies. 

• A PDF document provided by L&Q to help understand the invoices - L&Q seem to call this a "Summary of Expenditure".  you can apply for just this if you wish as it is the most meaningful component they provide.

The Cycle

The cycle kicks off with our receipt of the reconcilliation statement at end of September

We have six months from the receipt of the reconcilliation statement to mount a challenge.

L&Q have two months from your challenge to respond.  Their legal obligation is to provide facilities to inspect the invoices and services (at our cost) to copy them.  In practice they respond within a week or two and provide access electronically.  You should take a copy of the files they make available.

(We - the CMRA - are retaining historical copies of such data so that we can compare year after year.  If you are willing please email your link from L&Q to secretary@chobhammanor.org and we will upload them for you.  We also want to use your reconcilliation statement to run a block by block comparision across the estate.  This helps to identify abnormal charges and anomolies with respect to line items). 

How to request the data/invoices

Templates are used by leaseholders across the country; here are templates for you to use:

• Microsoft Word 

• Google Docs 

There are a few fields for you to fill out/change.  Once you have done that send your request for invoices to contact@lqgroup.org.uk .  They will send an acknolwedgement back to you.

A few notes on the structure of the data

Data is split into two components Estate Charges and Block Charges.   If you live in an apartment block or a mainsonette you get both.

There is an exception for residents of Audax Heights, Criterium House of Triathalon Point where you will see a third component called "Scheme".  This is used to aggregate the courtyard between blocks, for maintianing gates and lighting; here costs are split across 161 properties.

This year the estate charges are split across 900 units/properties, we think that this now includes commerciual units but dont have confirmation of this, (last year the costs were split across 880 properties where commercial properties were not included - we are still pursuing this).  The invoice will show the total amount but you will only pay what charge in the right hand column of the reconcillation statement.  In reality the same Estate Charges apply across all properties on the estate. 

Block charges are largely split between the residents of a block e.g. 21 units in Hyett Court, HLA.  Just to complicate matters some line items are split differently - for example arcoss all Leaseholders+shared owners - so the total number might not simply divide by the number of units in a block.  Some items are a flat charge made by L&Q against each unit - for example legionnare testing of the block water supply - so again the total may not make sense.   The same charges apply within each block within the following two groups:

• Core - those units with access to the lift - more items so higher costs.

• Non-core - those units - fewer items.

The sinking fund is a special case - its a reserve fund used for major capital works from block painting to lift and roof replacement.  A small compnent of this charge (approx £30) is made to the capex on the estate.  The Sinking  Fund charge increases by inflation each year.  You can see the current state of the Sinking fund for your block at the bottom of the reconcilliation statement.  L&Q have been working through detail on captical expenditure so more of this soon.  

The L&Q management fee is set in our leases at 15% of the services charges.  The management fee is NOT charged on the sinking fund.

What to look for

The L&Q headings are not always self explanatory.  Our understanding of the headings is here.  Please note that there are new line items in this years statement and we will add to that list as our understanding increases.

There should be no individual bill/action that exceeds £250 unless you have been consulted through a Section 20 notice.  L&Q are obliged to refund any charge over £250 if they have not consulted.  This is for a single job not the total number shown.

Estate Charges: We will add a commentary regarding esatate charges as the invoices become available.  At first glance the cost of Tree Works is brand new.  We have had trees pruned but there has been other work that L&Q agreed to carry; we will ensure that they rebate this.  There is also a charge for estate cleaning materials - at first sight we think this might be for tree bags, mulch etc.  Unfortunately we seem to be carrying a hight cost on the estate charges due to lack of attention in the past.  We would hope/expect these to be a one off.

Mandatory Checks:  there are many checks that are required by law.  Check for your block in this spreadsheet.

Fire Safety Checks: Fire safety chaecks are required by a new, post Grenfell, law from Jan 2023.  The L&Q approach and the frequency of the checks can be found  here.  In reality we dont know until we see the data how they are charging for this - whether its a flat charge for each unit across the whole of L&Q, whether that occurs only when the Fire Risk Assessment is due or or whether its accrued over time and should be lower for the less frequent checks.  Hopefully more when we ge tthe data.

Lifts:  this is an expensive item.  Take a good look at the items in here and decide if ther work occured and was necessary.

Block Electricty Charges: there does seem to be a problem with the calculation of electricity in some blocks.  L&Q have exercised their right to notify us of provisiional expenditure.  If this applies to your block you will have received a notification with your reconcilliartion statement.  

We will add in more help over the next few days..... but see other L&Q pages for mandatory block checks and for infomation on Fire Risk Assessments.