Service charge.

ML81

The service charge for the flat we own has just increased by 15% to £159 per month. We live in the Sidcup area and would be interested to know what other people pay for their service charge.


Thanks!

StumpyPumpy

It can be anywhere between <£1 - £1m and beyond.

Service charges are very specific to the buildings to which they apply and the services they offer - some offer very little beyond an occasional clean of the communal areas while others include 24hr concierge services, gyms, swimming pools and even linen services and centralised heating.

Others include payments to build up a sinking fund for upcoming building maintenance while others still have management agents who want to screw every last penny out of the residents whilst doing the least amount of work possible.

You should have been given a statement of accounts showing where the money is spent and why there has been an increase - if you haven't contact the management company and ask for one and who is in charge of making those decisions. It also might be worth checking with your neighbours - people assume that everyone pays the same amount of service charge, but they don't always even in identical flats in the same building. Also check your leasehold agreement to see what it says (if anything) about how service charges are supposed to be applied.

SP

daveyjp

An increase could be due to either:

Anticipated increase in expenditure next year

or

Shortfall from last year to be made up over the course of next year.

Your annual accounts will explain the increase.