What is included in the service charge of Leasehold Properties?

A service charge for leasehold properties typically covers the costs of managing and maintaining the common areas and services shared by residents in a building or estate. The specifics of what is included can vary depending on the terms of the lease and the particular property, but it generally includes expenses such as:

Maintenance and Repairs: Costs for maintaining and repairing shared areas like lobbies, corridors, staircases, lifts, and other communal spaces.

Gardening and Landscaping: Upkeep of shared gardens or outdoor spaces, including mowing lawns, pruning shrubs, and planting flowers.

Cleaning: Regular cleaning of common areas such as entrance halls, corridors, staircases, and lifts.

Utilities for Common Areas: Costs for electricity, water, and sometimes gas in communal areas.

Building Insurance: Insurance for the building as a whole, which covers the structure and any shared areas.

Security: Expenses related to security measures, such as door entry systems, security staff, or CCTV systems.

Management Fees: Fees paid to the property management company for their services in managing the estate or building.

Reserve Fund: Contributions to a fund for major future repairs or upgrades (e.g., roof replacement or structural work).

Grounds Maintenance: If the property includes shared outdoor areas, this could include maintenance of those areas.

Other Services: Depending on the property, there may be additional services such as concierge services, gym or swimming pool maintenance, waste collection, or even internet services in some cases.

The lease agreement will outline exactly what services are covered by the service charge, and the breakdown of costs should be itemised in the annual service charge budget provided to leaseholders. If you have any concerns or questions about specific charges, you should be able to request more details from your property management company or landlord. Please contact us for more information about leasehold properties.

*This article is not legal advice but provides a general overview. The specific details of your case will determine the best course of action.