Question 1

HMS 2026 FEES – APARTMENTS/FLATS

Accepted Answer

HMS Fees Fees (effective until 30th September 2026)

HMS Property Management Services Limited (HMS) operates a transparent and competitive pricing philosophy. Management fees are levied at a rate per apartment / flat per annum. The fee of £240.00  per apartment / flat per annum will be fixed for one year and will be reviewed then. The additional fee to fund the requirements of the Building Safety Act 2022 and Associated Legislation of £35.00 per apartment/flat per annum for a Category 2 building and the £110.00 per apartment / flat per annum for a Category 3 building will also be fixed for one year. The HMS normal management fees are charged quarterly in advance. HMS Company Secretarial fees are charged annually in advance. All other HMS fees are charged as and when services are provided. To ensure HMS costs are met properties with only a few apartments/flats will be subject to a minimum overall fee annual fee.

Fees payable by the Management Company   (these are typical fees but the actual fee payable is dependent upon the circumstances of each building)

• Category 1 Buildings £240.00 per apartment / flat per annum to provide the majority of the HMS services. A minimum management fee of £1,750.00 per annum applies for blocks of apartments / flats where there are less than eight apartments / flats.
 • Category 2 Buildings £275.00 per apartment / flat per annum (representing an additional £35.00 per apartment / flat per annum Building Safety Act 2022 (BSA 2022) fee  over the Category 1 Building fee) to provide the majority of the HMS services which includes the BSA 2022 requirements. A minimum management fee of £2,500.00 per annum applies to Category 2 buildings. The applicable fee includes the cost of HMS undertaking quarterly communal fire door checks and maintaining relevant records (value at least the equivalent of £25.00 per apartment / flat per annum).
 • Category 3 Buildings £350.00 per apartment / flat per annum (representing an additional £110.00 per apartment / flat per annum Building Safety Act 2022 (BSA 2022) fee over the Category 1 Building fee) to provide the majority of the HMS services which includes the BSA 2022 requirements. A minimum management fee of £7,000.00 per annum applies to Category 3 buildings. The applicable fee includes the cost of HMS undertaking quarterly communal fire door checks and maintaining relevant records (value at least the equivalent of £25.00 per apartment / flat per annum).
 • £255.00 per annum to act as Company Secretary. For companies limited by shares and with 40 shareholders or more, a fee of £310.00 per annum applies. This is not applicable to companies limited by guarantee.

The definitions of the categories of buildings are shown at the foot of this fee schedule.

Fees potentially payable by the Management Company

• £450.00 to co-ordinate insurance claims. No charge will be made if the activities undertaken by HMS are minimal. In the case of a complex insurance claim HMS reserves the right to levy a higher fee on a time incurred basis.
 • To administer a Section 20 Consultation Process where typically major works are required HMS will levy a fee of 10% of the overall project cost subject to a minimum of £350.00 and a maximum of £1,000.00 (see note below). 
 • £375.00 for  preparation and issue of a Privacy Notice to satisfy the Data Controller requirements of the Data Protection Act 2018.
 • Depending upon the development HMS may request an Establishment Fee to ensure that at commencement of an agreement all necessary legal and Land Registry matters  are correct. The typical fee is circa £500.00.
 • To preparing an Electric Vehicle Charging Point(s) Policy. This is time based but typically circa £950.00. The Policy will highlight the many issues that the Client will need to consider.

Note: Section 20 (S20) is a clause in the Landlord and Tenant Act 1985 intended to protect leaseholders from paying unnecessary large sums of money for work carried out to their building. It is a consultative process. It is a consultive process. The fee covers the costs to undertake the consultancy process which typically lasts three to four months. If the process becomes very time consuming then HMS reserves the right to levy an additional fee to reflect the time incurred – such an additional fee would be notified and agreed with the client.

Fees potentially payable by others

• First Letter seeking recovery of arrears                                     		- 	No Charge
 • Second or Subsequent Letter seeking recovery of      arrears          	-        	£95.00
 • Issue of Court Protocol Papers 				                         -	£150.00                                   			
 • Instructing Solicitors for the recovery of arrears                          		-         	£285.00 
 • Attending Court in connection with arrears recovery                   	-       	£475.00* 
 • Preparing and responding to pre-contract enquiries                     
    • Category 1 Buildings                                                   			    -     	    £285.00
    • Category 2 & 3 Buildings                                             			    -          £325.00
            (Additional queries may incur fees on a time incurred basis)
 • Preparing Licence to Assign and Deed of Covenant			-	£390.00**
 • Accepting Notice of Mortgage / Remortgage				-	£175.00  
 • Accepting Notice of Assignment (including accepting 
	  Notice of Mortgage, accepting Deeds of Covenant,
	  Issuing new Share / Membership Certificate, issuing 
	  letters of consent)									  -	  £270.00
 • Reviewing Tenancy Agreement							-	£185.00
 • Additional administration fee for lease breaches                                		-    	£90.00* 
 • Management of Permission for Sub-Letting					-     	£80.00*
 • Renewal of a Sub-Letting								-          £50.00* 
 • Preparation of keeping a pet permission letter                             			-  	£40.00*
 • Preparation of licences e.g. alterations, window replacement      		-    	£90.00* 
 • Additional administration fee for unreasonable and vexatious                   
	  correspondence / enquiries                                                        			  - 	  £90.00*
 • Dealing with deeds of variation, DHS/DWP letters, payment plans/other	-	£90.00*     
 • Additional administration fee for failure to comply with BSA 2022 
	  safety requirements e.g. provision of tenant’s name and contact details 	   -	  £90.00*

The fees with the asterisk (*) are time based and are subject to a minimum amount which is the fee shown. With the exception of the annual fees and the additional time incurred administration fees the majority of all of the above fees are one-off fees because the work does not normally exceed two to five hours duration. The intention is to provide certainty with fees where possible.

The fee with the double asterisk (**) applies to a complex matter. For simpler matters the fee will be lower, usually £160.00.       
     
In any quotations that HMS issue for specific work HMS will estimate the time likely to be expended to undertake the task and calculate a quotation using a typical hourly rate of, currently, £160.00 per hour.

Where HMS undertakes work on a time incurred basis (as indicated in the fees above) a maximum hourly rate of, currently, £160.00 will apply.

All fees are subject to VAT at the current rate. Disbursements, e.g. postage, stationery, Land Registry fees will be recovered where appropriate.

The categories of building are defined as below:

Category 1 – Residential Buildings under 11m in height, which has less than 5 storeys, with two or more domestic premises with common areas 
Category 2 – Residential Buildings between 11m, or with at least 5 storeys, and under 18m in height with two or more domestic premises with common areas
Category 3 – Residential Buildings 18m (or 7 storeys) and above in height with two or more domestic premises and common areas

Question 2

HMS 2026 FEES – HOUSES (INDIVIDUAL PROPERTIES)

Accepted Answer

HMS operates a transparent and competitive pricing philosophy. Management Fees are charged at a rate per property per annum. The fee will be fixed for one year and will be reviewed then. HMS property fees are charged quarterly in advance. HMS Company Secretarial fees are charged annually in advance. All other HMS fees are charged as and when services are provided. To ensure HMS costs are smaller numbered properties will be subject to a minimum overall annual fee.

Fees payable by the management company:

• £140.00 per property per annum to provide the majority of our services. A minimum management fee of £1,500.00 normally applies.
 • £255.00 per annum to act as Company Secretary. For companies limited by shares and with 40 shareholders or more, a fee of £295.00 per annum applies. This is not applicable to companies limited by guarantee.
 • £425.00 to co-ordinate insurance claims. No charge will be made if the activities undertaken by HMS are minimal. In the case of a complex insurance claim HMS reserves the right to levy a higher fee on a time incurred basis.
 • £350.00 for preparation and issue of a Privacy Notice to satisfy the Data Controller requirements of the Data Protection Act 2018.
 • To preparing an Electric Vehicle Charging Point(s) Policy. This is time based but typically circa £900.00. The Policy will highlight the many issues that the Client will need to consider.

Fees payable by others:

• First Letter seeking recovery of arrears - No Charge
 • Second or Subsequent Letter seeking recovery of arrears - £90.00
 • Issue of Court Protocol Papers - £135.00
 • Instructing Solicitors for the recovery of arrears - £275.00
 • Attending Court in connection with arrears recovery - £450.00*
 • Preparing and responding to pre-contract enquiries. - £200.00 Additional queries may incur fees on a time incurred basis
 • Accepting Notice of Mortgage / Re-mortgage - £135.00
 • Accepting Notice of Assignment (including accepting Notice of Mortgage, accepting Deeds of Covenant, Issuing new Share / Membership Certificate, issuing letters of consent) - £260.00
 • Reviewing Tenancy Agreement - £185.00
 • Additional administration fee for covenant breaches - £85.00*
 • Preparation of permission letters (not pets), e.g. subletting - £55.00*
 • Preparation of keeping a pet permission letter - £35.00*
 • Preparation of licences e.g. alterations, window replacement - £85.00*
 • Additional administration fee for unreasonable and vexatious - £85.00* correspondence / enquiries
 • Dealing with deeds of variation, DHS/DWP letters, payment - £55.00* plans/other

The fees with an asterisk (*) are time based and are subject to a minimum amount which is the fee shown. With the exception of the annual fees and the additional time incurred administration fees the majority of all of the above costs are one-off fees because the work does not normally exceed two to five hours duration. The intention is to provide certainty with costs where possible.
            
Where HMS undertakes work on a time incurred basis (as indicated in the fees above) a maximum hourly rate of, currently, £160.00 will apply.

In any quotations that HMS issue for specific work HMS will estimate the time likely to be expended to undertake the task and calculate a quotation using a typical hourly rate of, currently, £160.00 per hour. Specialist work may carry a fee of circa £160.00/£200.00 per hour.

OUR PROPERTY SERVICE FEES AT HMS PROPERTY MANAGEMENT, SOUTHAMPTON

FOR MORE INFORMATION REGARDING OUR PROPERTY MANAGEMENT FEES, GET IN TOUCH BY CALLING 023 8168 1069