How is the service charge calculated?

The service charge is calculated so that every leaseholder only pays their share of the costs for management, maintenance and the provision of services. The overall service charges are divided fairly, in accordance with the statement in your lease.

From April 2007 the annual charge for the services you receive will be calculated by adding up the estimated costs of providing the services, and dividing that by the number of properties in the building.

A simple example would be:

Cost of services per year = £1000

Number of properties in building = 50

Calculation: (£1000 divided by 50) = £20 per property, per year.

Yearly changes to the service charges

The service charges are reviewed every year and can go either up or down, depending on the level of service provided.