Service Charge
The service charge is collected from all lessees by Encore and used to cover the cost of maintaining your development. Included within this is the upkeep of any communal areas, ground or gardens, shared utilities and buildings insurance. As the service charge becomes due, Encore will collect the monies and hold them in a separate client account specifically for, and accountable to, the site. This money will then be used to maintain your development to exacting standards.
Sinking fund
An element of this service charge is calculated as the replacement fund for the long term. This is collected within the service charge and is kept for long term, high cost projects and planned maintenance such as redecorating or replacing expensive capital equipment. This fund is kept in a separate account and managed by Encore on behalf of the freeholder/estate. Interest on the sinking fund account is credited to the estate's client account at the end of each financial year.
Ground rent
Ground rent is a charge which all lessees must pay to the freeholder in order to occupy a specific piece of land. The ground rent can be collected along with the service charge on behalf of the freeholder/landlord. This is then transferred to the freeholder/landlord directly.
Fully transparent accounts
The service charge fund for each estate is held in a separate client account. Any interest accrued is credited to the client account at the end of each financial year. Service charge budgets are produced before each financial year and finalised accounts at the end. The service charge accounts are audited independently by chartered accountants for each estate.
