How is the service charge calculated?

While every development we manage is unique, our approach to calculating your service charge is the same. We start by identifying all necessary tasks for the year ahead to ensure your development remains safe, well-maintained and in line with current regulations and your lease or transfer document. We then estimate the costs required to complete this work. 

The service charge for the upcoming year is based on estimated costs. We make every attempt to make sure this is as accurate and as close as possible to actual costs.  

For new build developments, service charge costs may phase in and could be lower in the early months, or even the first couple of years, as we might not be providing all services until all parts of the development are built and occupied.  

For established developments, the cost estimate is based on historic information, our knowledge of the development, and anticipated costs for the year ahead. We work hard to obtain competitive prices and negotiate cost savings for utility providers and maintenance contracts through our bulk purchasing power to get the best possible prices for you.  

The estimate covers all obligations specified in your lease or transfer document. This includes essential services such as insurance, audited accounts, Company Secretary duties, health and safety compliance, and other legal requirements.  

The total cost is then converted into a service charge amount and shared fairly between all properties, depending on the individual shares or principles, set out in each lease or transfer document. 

When is the service charge paid?  

This depends on your Lease or Transfer in England or Wales, or your Deed of Conditions in Scotland. You may be required to pay your service charge, once a year, twice a year (usually every six months), quarterly or occasionally in monthly instalments. 

Where is the service charge held?

When you and your neighbours pay your service charges, the money is held in a bank account under what’s called a statutory trust. This means that should anything happen to FirstPort, your money is kept safe.  

The account is held completely separate from all other FirstPort accounts and the money you pay, along with any interest earned, can only be used for your development. 

All our bank accounts are protected by the UK regulator, the Financial Services Authority (FSA) and the Financial Services Compensation Scheme (FSCS).