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Service Charge
This is the collective name given to the charges paid by all property/share owners within the Pavilions site, which are then used to fund all the costs associated with running and maintaining the estate and individual blocks. The Pavilions (Gosport) Management Company has been established to oversee the running and strategic planning of the site and a Board of Directors has been elected from volunteer owners. These funds are managed on a day to day basis by our managing agents, under the direction of the Finance Director. Our financial year runs from 1 Sept – 31 Aug, with charges being raised every 6 months once the estate budget for the entire year has been agreed by the Board of Directors. The Service Charges comprise 3 individual elements:

1) Estate Charge – this is used to fund all costs associated with running/maintaining the estate in general and all common areas.

2) Block Charge – this is used to fund all costs specific to running/maintaining the common areas of the individual block in which an owner’s property is located.

3) Water/Sewage Charge – this is calculated as a proportion of the estimated entire year’s charges, paid on account until the actual total costs charged by the utility companies have been reconciled at the end of the financial year. Any over or under payment is then applied to the following year’s charge.

Any funds collected by way of the above charges are kept by our managing agents in separate, clearly identifiable and audited bank accounts. Any interest earned on one of those accounts is retained for the sole benefit of that individual account.

Payment of Service Charge
When buying a property within The Pavilions site all owners sign their agreement to the legal obligations applicable to ongoing payment of their apportioned share of properly authorised Service Charges. Without these charges there would be no money available to pay crucial utility bills, buildings insurance, cleaning and gardening contractors etc, let alone fix defects or carry out planned maintenance such as painting of window frames. Therefore, it is really important that everyone please settles their Service Charge bills in a timely manner, otherwise inadequate cashflow could result in the withdrawal of some important jobs or services.

Reserve Funds
Part of the money raised by estate and block charges is saved in separate reserve funds used to fund longer term, usually big ticket maintenance or improvement/capital investment projects. By doing this the Directors can then plan ahead and budget for how these expensive works can be phased over a 10 year period. The alternative would be to simply divide the cost of any works between the relevant owners, as and when they are carried out. Having these reserves available means that it may be possible to meet most, if not all, of the costs without saddling owners with a large, unexpected bill. Whilst there are no refunds payable from these reserves to owners when they sell their property, the larger the balance already saved in the relevant reserve the more attractive a property may be to potential purchasers.