Service charge payment when Tenants in common

Robuscan

My partner and I own a leasehold property as tenants in common, and we each own different shares of the property. 

We're not sure how to split the expenses included in the lease, such as the service charge and ground rent.

We're considering two options:
1. splitting the charges equally, with each of us paying 50%,
2. or dividing the costs based on the percentage of the property that each of us owns. 

We would like to know if there are any laws or legal recommendations that could help us decide, if we are missing anything that should be considered too, or in your opinion, what would be the fairest option?

kaMelo

Whilst it's related to the property and the property ownership is not an equal split, this is not about the ownership percentage. This is an annual bill you both benefit from, no different to gas or electricity.

Assuming by partner you mean you're a couple, split the bill the same way you split the gas/electricity/water/insurance etc.

Robuscan

Thank you, we received your point. However, we understand that disassociating the service charge from ownership may be more challenging because, as you mentioned, we both use the services. However, would your opinion change if only one of us lives there or if we rent out the entire property?

On the other hand, ground rent is not a service that we use, such as electricity. It cannot be quantified, as it is paid for the property regardless of how much we use it. It simply provides us access to the share we own of the property. Do you understand our point?

Anyone else has an opinion!?

getmore4less

My view is split costs based on who would pay if you were landlords and tenants

Thinks as if  you own the house and rent it to yourselfs.

Anything a landlord would pay, you split on ownership

Anything a tenant would pay you split as occupants, typically 50:50.


How have you worked out ownership many get that wrong especially when there is a mortgage.

kaMelo

Robuscan said:

Thank you, we received your point. However, we understand that disassociating the service charge from ownership may be more challenging because, as you mentioned, we both use the services. However, would your opinion change if only one of us lives there or if we rent out the entire property?

On the other hand, ground rent is not a service that we use, such as electricity. It cannot be quantified, as it is paid for the property regardless of how much we use it. It simply provides us access to the share we own of the property. Do you understand our point?

Anyone else has an opinion!?

 No it wouldn't change it at all.  You both own it, you can both live there and make use of it, choosing not to do so doesn't remove the obligation to pay for it.  
More to the point, if by partner you mean you're a couple, why would you want to make things so complicated?