Why have I been charged a balancing levy or credited a surplus?

Under the terms of your Lease or TP1, you agree to pay service charges on account in advance. These payments are based on an estimated budget for the upcoming financial year.

What happens at the end of the financial year?

At the end of the service charge year, a full set of Service Charge Accounts is prepared. These accounts detail the actual income and expenditure for your development over the previous 12 months. An independent chartered accountant then certifies or audits the accounts. They are then issued to all property owners within six months of the financial year-end.

Understanding your credit or additional charge

Once the accounts are finalised, the actual costs are compared against the estimated charges you’ve already paid. If the development spent less than expected, you will receive a credit on your account—this is referred to as a surplus. If the development spent more than estimated, you will receive a balancing levy—an additional invoice for your share of the shortfall.

Your dedicated Estates Manager will be on hand to explain any variances and answer any questions you may have about your account.

Need more information?

For further details on what happens if your Service Charges remain unpaid, please see our related FAQs:

What happens if you don’t pay your service charges?

How is the Service Charge calculated?

Struggling to pay your service charge?

If you believe you have been charged in error or need help understanding your account, please contact our Accounts team on 0345 491 8898 or speak to your Estates Coordinator.