Leaseholders' guide – what you need to know - Service charges

What are service charges?

Service charges are payments you make for the upkeep and services shared by everyone in your building or estate. These include things like cleaning, repairs, and lighting in shared areas.

What do they cover?

You help pay for things like:

• building insurance (not contents insurance)
• lighting in shared areas (inside and outside)
• repairs to shared parts of the building
• cleaning of shared spaces
• caretaker or gardening services
• ground rent
• management fees (for services that benefit the whole estate or block).

Who pays them?

All leaseholders (people who own flats under a lease) in buildings with shared services pay a part of the cost.

How is your share decided?

Your lease and service charge explains how much of the total cost you need to pay. The map with your lease shows which parts of the building and estate are included.

Can you challenge the charges?

Yes. If you think the charges are unfair or the work wasn’t done properly, you can challenge them.

What about big repairs or improvements?

Sometimes the council does major work on your building or estate. You’ll need to pay your share of the cost.

How do you pay?

There are two ways:

• annual payments: You pay after the financial year ends. You’ll get a statement and invoice around September
• monthly or quarterly payments: You’ll also get a statement around September showing what you’ve paid and what the services cost.

The way you pay is determined by the number of services you receive and is specified in your lease.

Struggling to pay?

If you're having trouble paying, contact the Home Ownership Team. You can also get help from Citizens Advice.