Service Charges Explained

What are Service Charges?

Let us begin by stressing what Service Charges are not. Your service charge is not the fee you pay to Managed Partnerships Limited to manage your building or development.

The Service Charges you pay are your share of the total cost of services for the maintenance and running of the building or development.

Depending on the individual requirements of the site, and the terms of the leases or house deeds, these may include some or all of the following:

• Cleaning
• Window Cleaning
• Gardening and Tree Surgery
• General repairs and maintenance to communal areas or the structure of leasehold buildings
• Insurance
• Servicing and Maintenance of Plant and Equipment, such as lifts, water pumps etc.
• Testing and Maintenance of Fire Safety Systems
• Maintenance of Door Entry Systems and Vehicle Gates
• Salaries for any on-site staff, such as a concierge
• Accountancy fees for the annual service charge account certification or audit
• Our Management Fee

As can be seen, our management fee will only be one element of your service charge.

I live in a Freehold house. Why am I being asked to pay a Service Charge?

Your house will be on a development with communal facilities. This may be communal gardens, a private access road or some other facility. It will be these facilities that you will be paying a contribution towards.

If in doubt, read the deeds to your house or obtain further advice from the solicitor or conveyancer who acted for you when you purchased the property.

Why is my Service Charge different from my neighbour's?

Without checking the leases or deeds we cannot give a definitive answer, but it will probably be because your property differs in size from your neighbour's.

Often the Service Charges are apportioned according to the square footage of each property.

I live on the Ground Floor. Why am I being asked to pay for lift maintenance when I never use it?

Legally we have to calculate and charge Service Charges strictly in accordance with the terms of the leases of the flats in the building. 

Usually, all the flats in the building will have the same lease terms, meaning that everyone pays a contribution towards all the shared facilities.

Some facilities will be used by some residents more than others but leases do not necessarily make any allowance for this. 

For a Summary of your Legal Rights and Obligations in respect of Service Charges click here.