The service charge is made up of a number of costs which may include:
- Cleaning and gardening to shared areas
- Door entry systems
- Day-to-day repairs
- Shared TV aerial maintenance
- Fire safety equipment
- Repair and replacement communal furniture
- Lighting of communal areas
How are service charges calculated?
Service charges are calculated each year based on previous and estimated expenditure. At the end of each service charge year, an income and expenditure account is prepared.
This will show you whether costs have exceeded the service charge for that year. If costs have exceeded the amount taken in service charges then next year's service charge will rise to allow for this. The service charge will also increase in line with inflation and with other known cost increases.
If the account shows a surplus of money, service charge costs will be reduced proportionately in the following year.
For more details on service charges please read our Service Charge Policy