Service charges

Paying service charges

You can choose to pay your service charges and ground rent by the following methods:

• Direct Debit (monthly or quarterly payments) Download the form below.
• Online at Derby Direct To You (13 digit property reference number required)
• PayPoint (at any outlet which displays the PayPoint symbol)
• Automated touchtone payment line 0345 600 1982 (13 digit property reference number and payment card number required)

Direct Debit Form for Leaseholders Service Charge

Pay service charges online

The charges are legally due at quarterly intervals, but can be paid more regularly. Your lease allows you to pay your annual service charges on the following dates:

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

but you can pay more regularly to suit your needs.

If a debit adjustment is added to your account at the end of the service charge period, this would be due on 1 October.

For more information about the different payment methods we offer, go to our ways to pay section.‌

Standing order and bank payment details

You can set up a standing order using the following details:

Payee name
Derby Homes

Sort Code 30-92-59
Account Number 00005911

Reference Reference this number is quoted on all letters you receive from us. If you do not quote this number, we will not know who the payment has come from. If you cannot find this number, get in touch, and we will supply you with it

Ground rent

If you purchased your property from us before 30 June 2022 you’ll be charged an annual ground rent charge of £10. This 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.

Derby Homes will issue your ground rent notice before the end of February each year.

Estimated service charge statement

The landlord is responsible for repairing and maintaining the main building and any internal or external common areas. Service charges are simply the way you pay your share of the landlord’s costs for providing these services. The landlord may carry out these services themselves or appoint an external contractor on their behalf.

You do not get invoiced for service charges and ground rent. Each leaseholder has their own service charge account. You receive a notice or statement before the charges are added to your account.

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 provides details of the communal services that Derby Homes carry out at your block. It 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. They can also increase or decrease depending on the costs of a service. Your service charges could include some or all of the following services:

• building insurance
• grounds maintenance
• communal lighting
• communal cleaning
• communal TV aerials
• door entry systems
• day-to-day repairs
• closed-circuit television (CCTV)

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

Actual service charge adjustments

The service charge period is from 1 April to 31 March each year. At the end of the service charge period Derby Homes has six 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 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. If you think that we 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.

We have a dedicated Money Advice team that provide free, confidential and independent money and debt advice.

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.

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.

Zurich Municipal - Buildings insurance documents

Zurich Municipal - Buildings insurance interactive application form

Zurich Municipal - Buildings insurance policy document

Zurich Municipal - Buildings insurance printed application form

Your legal rights

This document briefly sets out your rights and obligations in relation to variable service charges and must by law accompany a demand for service charges.

Service Charges — Summary of tenants rights and obligations

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, you can also book a FREE 15-minute telephone advice appointment from one of their trained specialist lawyers or get fire safety advice using the forms on their contact page.

The service is government funded and completely free to you.