If you own or are living in a leasehold flat, you'll be required to pay an annual service charge. Below are some details about how it's collected and what it's used for.
What is service charge?
Service charge is the fund that pays for all the shared services that your building requires.
Imagine your building as a chest of drawers, with your flat as an individual drawer within the chest. While you are fully responsible for the contents of your 'drawer', it's vital that the chest that contains it is looked after. Your lease gives that responsibility to us, and the service charge money we collect is used wholly for this purpose, to care for your building's shared services.
- Property management
Read more about the above and your rights and responsibilities as a homeowner.
Service charge calculations
Service charge needs to be billed in advance so we can ensure there are funds available to pay for the costs associated with managing your building/estate. So the amount of service charge you pay as a homeowner will be based on an initial estimate. Exact (actual) costs are not known until after the financial period in which the charges were incurred, in April. If it turns out we spent less than the original estimate, your share of the surplus money will be returned to you, while if you've underpaid we'll need to collect additional money to cover the costs.
For more information on how service charges are calculated, please visit the LEASE website, which is a government-funded advisory service. You can also download a copy of the RICS Code of Practice, which sets out industrial best practice, upon which we model our conduct.
If you have concerns about the service you're receiving in your building or estate, you should contact your PMO. However, you must continue to make your monthly service charge payments. You can make a payment through your online account or by Direct Debit. Here are some tips on what you can do to keep your service charge low.