All developments on the South Maritime Estate are held on long leases
Leases are typically c.150 years, though some earlier leases may have different terms.
All developments pay an annual service charge, which covers the costs of maintenance and services on the South Maritime Estate, including the maintenance and cleansing of non-adopted estate roads, the maintenance of roadside landscaping, land management, insurances and management.
Homes & Communities Agency (HCA) now known as Homes England
The South Maritime service charge is apportioned between developments on the basis of site area, and the HCA (now known as Homes England) makes payments to the Trust in respect of undeveloped sites.
The developed area of South Maritime is currently assessed as 43.6 hectares (107.7 acres).
The precise area of some undeveloped sites may change when development commences, due to decisions over road access and open space. When the South Maritime Estate is fully developed, the total aggregate area will be recalculated and the apportionments amended accordingly. This is likely to make only a very marginal difference to the current apportionment of any given development.
Some older leases do not have service charge provisions. Contributions apportioned to these developments are met out of a special fund held by Chatham Maritime Trust and ring-fenced for this purpose.
The service charge proposals for the year commencing 1 April 2017 is in accordance with the RICS Commercial Service Charge Code and have been issued to the appropriate parties.
Budgeted costs have increased by 4.9% on last year’s costs. This is an increase of 2.9% above inflation. The majority of the increase reflects the additional maintenance costs, principally hard and soft landscaping following the land transfers to Chatham Maritime Trust as part of consolidation of the Estate.
Invoices for the first half of the year covering the period 1 April 2017 to 30 September 2017 will be issued for payment on 8th March for payment within one month.
The service charge year runs from 1st April. Advance payments are due on 1st April and 1st October in each year, based on a budget. At year-end there is a reconciliation of expenditure and there is a credit or a surcharge in respect of contributors. This is usually reflected in the October invoice of the following service charge year.
The principal accounting policies which are applied to the service charge budgets are:
- 2017-18 South Maritime Estate Plan
- 2017-18 Service Charge Policy Statement
- 2017-18 Budget Summary
- 2015-16 South Maritime Estate Plan
- 2015-16 Service Charge Budget
- 2015-16 Service Charge Policy Statement
- 2016-17 Service Charge Apportionment Schedule
- 2016-17 Service Charge Policy Statement
- 2016-17 South Maritime Estate Plan