A service charge is made to cover the development ongoing costs and services provided by your freeholder or residents management company to maintain the communal areas of your block or estate. These will include but not limited to gardening, cleaning, insurance, minor repairs, employee costs, lift expenses, communal utility supplies, accountancy fees, management and other professional fees, reserve fund and major works.
Details of what can and cannot be charged by the Lessor will all be set out within your lease. This will include the proportion of the charge to be paid by the Leaseholder.
Most Leases stipulate the collection of service charges in advance, including collecting any shortfall at the end of the year. Some Blocks have arrangements that whilst the lease provides for an interim demand to be payable when sent they are happy to accept payments by instalments, typically monthly direct debits.
Each resident management company we are appointed by will have a specific client bank account for service charge funds to be paid into.
