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Charges & Funds - Limits to Service Charges

There are some limits on how much Erimus can charge for services.

Right to buy/acquire leases only

When we sell a lease under the right to buy/right to acquire rules, it provides a new leaseholder with a notice called a section 125 notice. This notice gives Erimus’ estimate of what it expects to spend on major repairs, improvements and decorations over the next five years and what the new leaseholder can expect to be charged. This notice is intended to help new leaseholders budget for the costs of becoming a leaseholder.

During this five year period, Erimus Housing cannot charge the leaseholder more than the amounts it has estimated in the Notice plus an allowance for inflation. The five year period runs to the end of the fifth financial year since the lease was sold – this is up to the end of the March following the fifth anniversary of the date the lease was granted.

The estimates given by Erimus for the costs of work will vary over time. Because of this, a leaseholder who buys a flat in the same block at a different time may have a different limit quoted in their notice.

The maximum limits given in a Section 125 Notice will apply to the next leaseholder if the property is resold within the five-year period. Once the five year period has ended, a new leaseholder is liable to contribute to the cost of works in the same way as other leaseholders.

If works that Erimus expects to carry out are delayed until after the five year period has ended, the limits in the notice no longer apply.

Erimus Housing cannot recover more than £250 of costs for major works or more than £100 of costs for works under long term agreements unless we have consulted with you first. For further information refer to ‘Major works consultation’.

Contact us by calling our contact centre on 08000 461600 or by emailing homeownershipteam@erimushousing.co.uk

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