Buildings insurance premiums

Insurance premium tax

Paid out insurance excess contributions

Tenants are not required to pay any premiums for buildings insurance as this is a landlord cost which is funded from part of rent payments. Leaseholders may have to pay the landlord the cost of insuring part or all of their property as set out in the terms of the lease agreement.

 

Electricity

This charge would be payable where a property has one electricity supply, but the cost of the gas has to be split between more than one tenant. This would be the part of the cost of electric which is for private use and excludes any part relating to communal areas.

 

Furniture charges

A furniture charge is payable where the landlord provides furniture to a tenant to support and enable them to maintain a tenancy. An example would be in temporary accommodation when a tenant does not have any furniture. One key consideration is that ownership of the furniture must always remain with the landlord.

 

Gas

This charge would be payable where a property has one gas supply, but the cost of the gas has to be split between more than one tenant. This would be the part of the cost of gas which is for private use and excludes any part relating to communal areas.

 

Ground rents

Ground rents are payable by leaseholders under the provisions of the lease agreement. They are generally for small sums payable each year and should be requested as prescribed by legislation. However, for ease of administration and to keep management costs down these are often included in annual service charge demands.

 

Heating charges - communal heating systems

These charges relate to services from which an individual tenant benefits through a communal/centralised heating system. For example - where there is a central boiler providing heating and hot water throughout the block, there are communal elements as well as individual properties receiving the service. Costs for communal heating would be contained in Communal gas and electricity.

 

Miscellaneous charges

These are any charges which are not set my Milton Keynes City Council. An example is where we purchase a flat in a building where we own a lease, and the services are managed and arranged by the freeholder. In these circumstances we have no control over the cost of these services.

 

Water and sewerage - property specific

This charge applies where the water company bills Milton Keynes City Council directly for water and sewerage charges to individual properties. Generally, wherever it is possible to bill for a service directly to a resident this should happen, however where this has not happened historically, we will look to move responsibility back to the residents, so they only pay for what they use. This charge would also apply where accommodation is shared, and the building only has one metered water supply.