Service Charge

The Service Charge covers the upkeep and ongoing maintenance of a block or building and its communal areas. These costs are the responsibility of every leaseholder, how they are split between the residents is detailed in every lease.

The costs will include the day-to-day maintenance, such as cleaning and lighting of communal parts and garden maintenance, plus the costs of any planned major works like a new roof. In some cases, if major works are planned then an amount may be collected each year to offset against the overall cost of the work.

At the beginning of each financial year a budget, based on the actual or estimated cost of the services and upkeep, is set and the cost is allocated to each leaseholder. At the end of the financial year, the actual amount spent is compared to the initial estimate. If less is spent the leaseholder will receive a credit and if more is spent then it may be necessary to collect additional funds from the leaseholders or add it to the next year's account.

Making sure Service Charges are paid in full and on time is important.  Each block or building has a dedicated Service Charge bank account. Industry regulations stipulate that the account cannot go overdrawn, therefore, if the contributing leaseholders do not pay the service charge and there are insufficient funds in the account, maintenance work may need to be postponed until sufficient funds are in the account. In addition, for most people, their property is often their biggest asset, the prevention of maintenance could easily harm the value of this asset.

Our experienced Block Managers have a great deal of knowledge dealing with blocks and developments of all types and sizes. If you need any advice on your current service charges we are here to help.

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