Service Charges Overview

Service Charges are fees payable under the terms of a Lease. These generally include buildings insurance, maintenance costs and management fees.

It is a common complaint that many freeholders/managing agents attempt to overcharge leaseholders at the same time as failing to carry out proper maintenance of the property. Commonplace abuses include charging excessive buildings insurance and sinking fund payments, requesting payment for services or expenditure which are not recoverable in the lease, exaggerating expenses and charging for costs which have not been paid.

As a flat owner, there are rules in place as to how much you are charged, what you are charged for and how your freehold owner/managing agent requests the money. All leaseholders have the following rights:

1. Right for service charges to be 'reasonable'.
2. Right to Consultation over works.
3. Right to provide own Buildings' Insurance.
4. Right to be provided with information.
5. Right to receive an annual budget/certificate.
6. Right to self-manage the property or appoint alternative agents through Right to Manage.

If you are unhappy with the amount of service charges you are paying, you can do something about it. Challenging disputed charges serves to redress the balance between you and your freeholder. Knowing what you can do to reduce your frustration and how to do it is the key to overcoming Service Charge rage.

Contact Pro-Leagle to see how we can help.