Service Charge when buying a leasehold property

Sharedealer123

I have bought a leasehold property.   The previous owners had paid the service charge up until 1st October 2025.  The service charge period was 1st April 2025 until 30th March 2026, to be paid biannually.   I moved around 25th September 2025.   Who is responsible for the service charge from 1st October until 30th March 2026? 

Neil49

You will be responsible from the day you moved in. Any funds paid in advance by the previous owner should be calculated by the solicitors involved in the buying and selling of the property and refunded accordingly. 

eddddy

Sharedealer123 said:

I have bought a leasehold property.   The previous owners had paid the service charge up until 1st October 2025.  The service charge period was 1st April 2025 until 30th March 2026, to be paid biannually.   I moved around 25th September 2025.   Who is responsible for the service charge from 1st October until 30th March 2026? 

In general, you have to pay any Service Charge bills that are dated after your completion date.

So it sounds like you received a service charge bill that was dated somewhere around 1st October - so you are responsible for paying it, because you completed before the 1st October.



To be honest - if you received a Service Charge bill dated around the 1st October and you haven't paid it yet, I suspect they'll be a chunk of enforcement costs added to the bill by now.




Edit to add...

Sharedealer123 said:

...to be paid biannually.  

Just to double check...

• 1) Does the lease say the service charge must be paid every 6 months
• 2) Or does the lease say the service charge must be paid every 12 months - but the freeholder allows it to be paid in two 6 monthly installments?

If it's option 1, you are almost certainly responsible for paying the bill

If it's option 2, the situation might be more complicated. In that case, you might or might not be responsible for paying the bill, as all outstanding installments should have been paid on completion.

Sharedealer123

eddddy said:

Sharedealer123 said:

I have bought a leasehold property.   The previous owners had paid the service charge up until 1st October 2025.  The service charge period was 1st April 2025 until 30th March 2026, to be paid biannually.   I moved around 25th September 2025.   Who is responsible for the service charge from 1st October until 30th March 2026? 

In general, you have to pay any Service Charge bills that are dated after your completion date.

So it sounds like you received a service charge bill that was dated somewhere around 1st October - so you are responsible for paying it, because you completed before the 1st October.



To be honest - if you received a Service Charge bill dated around the 1st October and you haven't paid it yet, I suspect they'll be a chunk of enforcement costs added to the bill by now.




Edit to add...

Sharedealer123 said:

...to be paid biannually.  

Just to double check...

• 1) Does the lease say the service charge must be paid every 6 months
• 2) Or does the lease say the service charge must be paid every 12 months - but the freeholder allows it to be paid in two 6 monthly installments?

If it's option 1, you are almost certainly responsible for paying the bill

If it's option 2, the situation might be more complicated. In that case, you might or might not be responsible for paying the bill, as all outstanding installments should have been paid on completion.

It's option 2.  The day before completion, I sent six months of service charge money to my solicitor on their request.  I thought this was to refund the sellers who were still liable for the remainder of the service charge period even though they were going to complete the next day.  Now, 2 months later, I am contacted for the first time by the management company demanding that I pay the service charge.  I am still waiting for my solicitor to get back to me about this.   

eddddy

I think the wording of your original post might have sent people off in the wrong direction.

It now sounds like the problem is:

• You believe you paid your solicitor a service charge apportionment that covered the period 1st October until 30th March 2026

• You have now received a bill from the management company for service charges for the period 1st October until 30th March 2026

(Does your solicitor's completion statement confirm the service charge apportionment was paid?)




In that case, it sounds like somebody has made a mistake - it could be the seller, the solicitor, or the management company. Without further investigation, it's not really possible to say which.


Without further investigation, it's also not possible to say definitively whether...

• 1) You owe the money to the management company, and you should claim it back from the seller

• 2) The management company has made a mistake, and they are not owed any money

• 3) The seller owes the management company the money (because it is part of an installment agreement, which is outside the scope of the lease - and is nothing to do with you)

• 4) You've made a mistake, and you didn't pay an apportionment covering the period 1st October until 30th March 2026

If you've contacted your solicitor about this, maybe leave them to do the investigation and see what they say.

But if it turns out to be option 1 or option 4 above, lots of fees for late payment might be added.

Sharedealer123

eddddy said:

I think the wording of your original post might have sent people off in the wrong direction.

It now sounds like the problem is:

• You believe you paid your solicitor a service charge apportionment that covered the period 1st October until 30th March 2026

• You have now received a bill from the management company for service charges for the period 1st October until 30th March 2026

(Does your solicitor's completion statement confirm the service charge apportionment was paid?)




In that case, it sounds like somebody has made a mistake - it could be the seller, the solicitor, or the management company. Without further investigation, it's not really possible to say which.


Without further investigation, it's also not possible to say definitively whether...

• 1) You owe the money to the management company, and you should claim it back from the seller

• 2) The management company has made a mistake, and they are not owed any money

• 3) The seller owes the management company the money (because it is part of an installment agreement, which is outside the scope of the lease - and is nothing to do with you)

• 4) You've made a mistake, and you didn't pay an apportionment covering the period 1st October until 30th March 2026

If you've contacted your solicitor about this, maybe leave them to do the investigation and see what they say.

But if it turns out to be option 1 or option 4 above, lots of fees for late payment might be added.

Two days before completion, I received a completion statement without apportionments for the service charge.  The solicitor said they were still waiting for the seller's solicitor to provide the apportionments.  The next day, the seller's solicitor sent the apportionments, and I sent the money, but I don't think I received an updated confirmation statement.   

What is strange to me is why the management company has taken 2 months to raise the service charge issue.   I moved in 2 months ago.
 

eddddy

Sharedealer123 said:

Two days before completion, I received a completion statement without apportionments for the service charge.  The solicitor said they were still waiting for the seller's solicitor to provide the apportionments.  The next day, the seller's solicitor sent the apportionments, and I sent the money, but I don't think I received an updated confirmation statement.   

 

But was that apportionment for the period 1st September until 30th March 2026?

Or was that apportionment just for the period 1st September to 30th September 2025?


If it was just for 1st September to 30th September 2025 - then it would be correct that you have to pay the service charges from 1st October 2025 onwards.

Sharedealer123 said:

What is strange to me is why the management company has taken 2 months to raise the service charge issue.   I moved in 2 months ago.
 

Have they said there is an issue?

Or have they just sent you a Service Charge bill for 1st October until 30th March 2026?

And have they sent a Service Charge bill to every other flat owner at the same time for 1st October until 30th March 2026?

If they've said there's an issue, how have they described the issue?

Sharedealer123

eddddy said:

Sharedealer123 said:

Two days before completion, I received a completion statement without apportionments for the service charge.  The solicitor said they were still waiting for the seller's solicitor to provide the apportionments.  The next day, the seller's solicitor sent the apportionments, and I sent the money, but I don't think I received an updated confirmation statement.   

 

But was that apportionment for the period 1st September until 30th March 2026?

Or was that apportionment just for the period 1st September to 30th September 2025?


If it was just for 1st September to 30th September 2025 - then it would be correct that you have to pay the service charges from 1st October 2025 onwards.

Sharedealer123 said:

What is strange to me is why the management company has taken 2 months to raise the service charge issue.   I moved in 2 months ago.
 

Have they said there is an issue?

Or have they just sent you a Service Charge bill for 1st October until 30th March 2026?

And have they sent a Service Charge bill to every other flat owner at the same time for 1st October until 30th March 2026?

If they've said there's an issue, how have they described the issue?

This is exactly what was said in the email I received from my solicitor the day before completion: 

 I have just heard from the sellers solicitors with apportionments

 

Service Charge: -

 

01/04/25 to 30/09/25 = 183 days

 

£2,703.75 divided by 183 days = £14.77 (daily rate)

 

25/09/25 to 30/09/25 = 5 days (buyers ownership)

 

£14.77 (daily rate) x 5 days = £73.87 due from buyer.

 

Please can you therefore arrange to send £73.87 to us. Please let me know once sent

 

The sellers solicitors have also informed me there is a closing balance of £2,703.75 for the period of 01/10/15 to 31/03/26 which will need to be cleared by you directly with the managing agent as this will cover your client’s period of ownership – are you happy to send us across the same

 

Regarding the recharges for the services, our client has informed us they are to provide meter readings for the property to the managing agent upon completion and have asked that the charge them directly for the sum due for their period of ownership once the invoices are raised.

 

If you are in agreement with the above please arrange to send across £2777.62 ahead of completion tomorrow.

 

Please confirm once sent

eddddy

Sharedealer123 said:

This is exactly what was said in the email I received from my solicitor the day before completion: 

 I have just heard from the sellers solicitors with apportionments

 

Service Charge: -

 

01/04/25 to 30/09/25 = 183 days

 

£2,703.75 divided by 183 days = £14.77 (daily rate)

 

25/09/25 to 30/09/25 = 5 days (buyers ownership)

 

£14.77 (daily rate) x 5 days = £73.87 due from buyer.

 

Please can you therefore arrange to send £73.87 to us. Please let me know once sent

 

The sellers solicitors have also informed me there is a closing balance of £2,703.75 for the period of 01/10/15 to 31/03/26 which will need to be cleared by you directly with the managing agent as this will cover your client’s period of ownership – are you happy to send us across the same

 

Regarding the recharges for the services, our client has informed us they are to provide meter readings for the property to the managing agent upon completion and have asked that the charge them directly for the sum due for their period of ownership once the invoices are raised.

 

If you are in agreement with the above please arrange to send across £2777.62 ahead of completion tomorrow.

 

Please confirm once sent

Each time you provide more info, things move in a different direction!

(I assume you mean "for the period of 01/10/25 to 31/03/26" and not "for the period of 01/10/15 to 31/03/26". )

(And Wow... your service charge is around £5400 per year. Sounds like you have a nice place!)

 

So now it sounds like:

• Your solicitor paid the seller £73.78 to cover the period from 25th September to 30th September

• Your solicitor paid the managing agent £2,703.75 to cover the period from 1st October until 30th March 2026

So has the managing agent sent you a bill for £2,703.75 to cover the period from 1st October until 30th March 2026?



If so, you should reply to the managing agent that your solicitor has already paid the managing agent £2,703.75 to cover the period 1st October until 30th March 2026.

Hopefully, the managing agent will check and reply "Yes - we received £2,703.75 from your solicitor on your behalf, so all your service charges are paid up to date."

Sharedealer123

eddddy said:

Sharedealer123 said:

This is exactly what was said in the email I received from my solicitor the day before completion: 

 I have just heard from the sellers solicitors with apportionments

 

Service Charge: -

 

01/04/25 to 30/09/25 = 183 days

 

£2,703.75 divided by 183 days = £14.77 (daily rate)

 

25/09/25 to 30/09/25 = 5 days (buyers ownership)

 

£14.77 (daily rate) x 5 days = £73.87 due from buyer.

 

Please can you therefore arrange to send £73.87 to us. Please let me know once sent

 

The sellers solicitors have also informed me there is a closing balance of £2,703.75 for the period of 01/10/15 to 31/03/26 which will need to be cleared by you directly with the managing agent as this will cover your client’s period of ownership – are you happy to send us across the same

 

Regarding the recharges for the services, our client has informed us they are to provide meter readings for the property to the managing agent upon completion and have asked that the charge them directly for the sum due for their period of ownership once the invoices are raised.

 

If you are in agreement with the above please arrange to send across £2777.62 ahead of completion tomorrow.

 

Please confirm once sent

Each time you provide more info, things move in a different direction!

(I assume you mean "for the period of 01/10/25 to 31/03/26" and not "for the period of 01/10/15 to 31/03/26". )

(And Wow... your service charge is around £5400 per year. Sounds like you have a nice place!)

 

So now it sounds like:

• Your solicitor paid the seller £73.78 to cover the period from 25th September to 30th September

• Your solicitor paid the managing agent £2,703.75 to cover the period from 1st October until 30th March 2026

So has the managing agent sent you a bill for £2,703.75 to cover the period from 1st October until 30th March 2026?



If so, you should reply to the managing agent that your solicitor has already paid the managing agent £2,703.75 to cover the period 1st October until 30th March 2026.

Hopefully, the managing agent will check and reply "Yes - we received £2,703.75 from your solicitor on your behalf, so all your service charges are paid up to date."

The managing agent has emailed me to say they haven't received the money.  

eddddy

Sharedealer123 said:

The managing agent has emailed me to say they haven't received the money.  

So ask your solicitor to confirm.. 

• The sort code and account number that the money was sent to
• The amount paid
• The payment reference that your solicitor used
• The date and time it was sent

Then pass that info back to the Managing Agent, to see if they can find it.

If the Managing Agent says they still can't see the payment, ask your solicitor to re-check.


To be honest, this is no longer looking like a Service Charge issue - it's more an issue of one party says they did a bank transfer, and the other party is saying that they didn't receive it.