Service Charge (Property)

A charge paid by leaseholders to the freeholder or management company to cover the costs of maintaining and repairing communal areas, buildings insurance, and shared services. Service charges must be reasonable and properly accounted for. Leaseholders can challenge unreasonable charges at the First-tier Tribunal (Property Chamber).

Related terms

LeaseholdGround Rent

Related guides

Leasehold and Service Charge Disputes

Owning a leasehold property means owning the property for a fixed term while the freehold — the land — is owned by someone else (the freeholder or landlord). Leaseholders pay ground rent (now largely abolished for new leases) and service charges for the maintenance and management of the building. Disputes about service charges, management quality, and lease terms are common, but leaseholders have legal rights and access to the First-tier Tribunal (Property Chamber) to resolve them.

11 min

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