Service charge in retirement apartment

Help7
Help7 Online Community Member Posts: 2 Listener
edited October 22 in Housing and independent living

I'm working earning about 12,000 a year. Old enough to claim pension but haven't paid enough NI as I've been abroad for 40 years. I have bought a retirement apartment and the service charge is around 6000 a year. Currently I'm using my capital to pay that.

Can I get any help to pay the service charge.

My sister is prepared to pay the money to top up unpaid NI. If I then draw a pension will that be taxed, or can I claim tax relief against the service charge?

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  • poppy123456
    poppy123456 Online Community Member Posts: 62,398 Championing

    Whether it's possible to claim Pension Credit will depend on your circumstances. You can put your details into a benefits calculator to check entitlement.

    For help with service charges through housing benefit it will depend on exactly what the service charges are for. There's details here that may help.

    https://www.entitledto.co.uk/help/Eligible-rent-for-Housing-Benefit-and-service-charges

    State pension is taxable income. Can't answer your other question about tax relief, sorry.

    Benefits calculator here.

    https://www.entitledto.co.uk/benefits-calculator/

  • Rachel_Scope
    Rachel_Scope Posts: 1,656 Scope Online Community Coordinator

    Hi @Help7 and welcome to the community. Our members have already answered our question but I wanted to say hi 😊

    I wasn't aware of service charges in retirement apartments so I had a look and was shocked at how much you can be charged. It seems £6000 is the average - Retirement property hidden costs!

  • Help7
    Help7 Online Community Member Posts: 2 Listener

    Thanks everyone

    The service charge can be levied at any amount. This is the nightmare of leasehold. The landlord appoints a management company that can charge what it likes and although residents can put forward their own contractors to carry out major works decent contractors don't want to waste their time jumping through the management company hoops and wait 3 months for payment. Consequently the contractors they get, charge what they want and the management change 11% on top . The average age of the residents in this set of retirement apartments is 85+.

    The only solution is to acquire Right To Manage which is proving complicated and very worrying for many.

    Service charges doubled in one year with no prospect of them reducing as the building needs work. However with the activities of those organising the RTM the management company shelved their £187,000 roof project, initially estimated at £78,000.

    Exploitation of the vulnerable using every legal loophole they can

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