Page 19 - Victory Pier - Lease Guide

What other costs will I have to pay each year?
Contribution to a Reserve/Sinking Fund
This is money that is collected and built up, over a number of years, to cover the cost of significant expenditure or major works. It could be either planned and recurring, such as redecoration, or for major one-off replacements such as replacing a worn-out lift.
Having a well managed reserve fund means leaseholders annual contributions accumulate. This allows any required works to be undertaken, following a full consultation process, knowing that some funds will be available to aid with the cost of the works.
Ground Rent
When you purchase a leasehold flat, you purchase the right to live there for a given number of years (“the term”). Ground Rent is charged by the landlord as rent for the land on which the block is built.
The amount of Ground Rent payable, and how often it is charged will be set out in the lease.
Interest charges for penalties and late payments
Your lease will set out if there are any charges for penalties and late payments on the service charge and ground rent.
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