The method of apportionment of Service Charges was set out in Clause 7 (6)
of the leases granted in 1978. The proportion attributable to each flat will
be the same proportion as the Rateable Value (RV) of the flat bears to the
total RV of the whole of BAM Estate. This was a common method used for
apportioning service charges at that time.
The District Valuer (DV) would assess each property in the land (residential and commercial) to determine it's Gross Value, and following certain deductions arrive at it's RV. These calculations were based on the DV's valuation of the rental value of each property. These valuations were carried out on a cyclical basis so that all properties would be valued as at the same date. The RV was the basis on which each property was charged Rates (local tax) and Water Rates. In 1990 the government changed the basis of local taxation to the Community Charge (a.k.a. the Poll Tax) and then in 1993 to the current Council Tax. These changes meant that the residential RV was no longer required, and the DV no longer has to produce these valuations.
We will continue to apportion the service charge on the basis of RV ratios.
The service charge is payable by four equal quarterly payments in advance on the usual quarter days of 25th December, 25th March, 24th June and 29th September.