What is a leasehold service charge?
Service charges are contributions due under the terms of your lease towards the costs of maintaining and providing services for the block and estate in which you have your property.Each leaseholder has to pay a share of the overall cost for providing these services.
You normally pay service charges if you live in a flat, or a house that has communal areas, and/or where there are annual servicing contracts in place.
Typically, service charges might cover:-
- cleaning communal areas
- maintaining lifts
- gardening in communal areas
- maintaining and redecorating buildings
- electricity in communal hallways, street lighting, external security lighting
- annual servicing of emergency lighting
- contributions to the repair or replacement of major items, such as door entry systems or lifts
- surveyors and/or other consultants fees and costs
- management costs incurred in setting up contracts and providing services
- renting and repairing the television aerial
- maintaining fire alarms
- other services as defined in your lease
How Service Charges are calculated?
During the autumn of each year, WATMOS looks at how much money has been spent on providing these services and also estimates how much will be needed in the next financial year. Those estimates are based on actual costs, inflation and prices from contractors. The proportion of the overall charge that you pay, and how it is calculated is set out in your lease.
When we do major works to your property we are required by law to consult with you to get your opinions on the work and the cost of the work.Once the major work is completed we will calculate your share of the total costs and send you an invoice for that amount.