Service Charges

Ground Rent

Derby Homes will issue your Ground Rent Notice before the beginning of each financial year. The annual Ground Rent charge of £10 is the rent for the land that your property is built on. The £10 charge is fixed by the terms of your lease so this charge will not vary throughout the term of your lease. The £10 charge will be added to your service charge account on the 1 April each financial year.

Service Charges

Before 1 April each financial year Derby Homes will send you an Estimated Service Charge Statement for the forthcoming service charge period of 1 April to 31 March. Your statement will provide details of the communal services that Derby Homes carry out at your block. Your statement will also inform you of the estimated annual cost to you as a leaseholder.

The services that apply to your property will vary according to where you live and the type of property you own.

Your service charges could include some or all of the following services:

  • Building Insurance
  • Grounds Maintenance
  • Communal Lighting
  • Communal Cleaning
  • Communal TV Aerial
  • Door Entry
  • Day to Day Repairs
  • CCTV

Under the terms of your lease these services are subject to a 10% administration fee.

How to pay your Service Charges and Ground Rent

Your lease allows you to pay your annual service charges quarterly on the:

  • 1 April
  • 1July
  • 1October
  • 1 January

Other payment options are available such as monthly Direct Debit. To find more information about the different payment methods we offer or to make a payment to your service charge account please see our page on ways you can pay.

Actual Service Charge Adjustments

The service charge period is from the 1 April to the 31 March each year. At the end of the service charge period Derby Homes has 6 months to prepare your Actual Service Charge statement. Before the 1 October each year we will write to inform you of the actual costs incurred for providing these services for the last service charge period.

The difference between the estimated and actual service charge costs will be added to your service charge account as either a credit or debit adjustment.

Service Charge Disputes

We try to ensure that our service charges are accurate and reasonable, however if you feel that we may have made a mistake in the calculation of your service charges then you should contact the Leasehold Manager. We will check the charges and if we have made a mistake, we will correct it. If the charge is correct we will explain why.

Most service charge enquiries can be dealt with quickly, however in cases where they cannot we have a formal procedure for dealing with such disputes.

Money Advice

If you are unable to keep up with your service charge payments you must contact the Leasehold Manager immediately to discuss your payment options.

Under the terms of your lease, you are responsible for the payment of the Ground Rent and Service Charge for your property. If you do not pay the money that is owed, then you will in breach of the terms of your lease.

If you do not pay the money that is owed, Derby Homes, on behalf of Derby City Council who is the landlord, will have no alternative but to take further action to enforce the terms of the lease and seek a remedy for the breach. This may include taking legal action to recover the debt or even commencing forfeiture proceedings.

If you have debt problems you may be able to get help from organisations such as Citizens Advice or Step Change, the debt charity.

Building Insurance

You must make sure you have adequate property insurance. Derby City Council can arrange your building insurance for you through their current insurer Zurich Municipal. Your building insurance premiums will be recharged back to you through your service charges. You can download the Building Insurance proposal form from this page.

If you want to arrange your own building insurance then you will need to provide a copy of your current building insurance schedule for our records upon request.

Your legal rights as a leaseholder

If you are unsure about your legal rights as a leaseholder, the Leasehold Advisory Service (LEASE) can help you. If you cannot find the answer to your question on their website at you can call one of their trained specialist lawyers on 020 7374 5380 for FREE legal advice. The service is government funded and completely free to you.