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Understanding service charges for leasehold properties, what they cover, how they're calculated, and your rights as a leaseholder.
A service charge is a fee you pay as a leaseholder to cover the costs of maintaining and managing the building and shared areas of your property.
If you own a leasehold flat or apartment, you'll pay a service charge to the freeholder or management company. This covers things like building maintenance, insurance, cleaning, and management fees.
Service charges typically cover:
The exact items covered will be set out in your lease agreement.
Service charges vary widely depending on:
Typical service charges range from:
Your lease will specify how the service charge is calculated and what it covers.
Service charges are usually calculated as:
The freeholder or management company must provide:
Service charges are usually paid:
The payment schedule should be set out in your lease. Some management companies allow you to pay monthly by direct debit to spread the cost.
Yes, you have rights to challenge service charges if:
You can:
A reserve fund (or sinking fund) is money set aside for:
You'll pay into this fund as part of your service charge. It helps avoid large one-off bills when major work is needed.
If you don't pay your service charge:
Service charges are a legal obligation under your lease, so you must pay them.
You can't usually reduce the service charge itself, but you can:
Remember, service charges should only cover reasonable costs for necessary work.
Home & Lifestyle Writer
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