Frequently Asked Questions

FAQ groups:

7 frequently asked questions in Leasehold service charges and reserve funds:

What are service charges?: They cover all costs associated with the running of the communal parts of the property, e.g. cleaning, gardening, door entry systems and fire alarm maintenance.
How are service charges calculated?: A budget each year is prepared and is based on actual expenditure for the previous financial year. Where necessary a provision is made for future major expenditure such as internal or external repairs and redecoration.
How often are service charges paid?: Quarterly, or half-yearly, or annually Ð as per your lease. An invoice is sent to you in advance of the payment due date.
What if I can't afford to pay my service charge?: You will be in breach of the terms of your lease. However we will in certain circumstances accept monthly payments by standing order.
My service charge is higher than my neighbours. Why is this?: Services charges are usually allocated according to the size of the property. Your lease will tell you the percentage you have to pay.
How will I know what the service charge funds have been spent on?: Accounts are prepared to show annual expenditure at the property. Flat owners are able to inspect the invoices that make up the accounts.
Why do I have to pay into a reserve fund?: A reserve fund builds up sufficient funds to cover cyclical maintenance such as internal or external redecoration.