A service charge is a payment made by a tenant or homeowner towards the cost of services and repairs beyond those specifically for their house or flat. The Service Charge is collected in accordance with the requirements of each individual lease.
For example, if you live in a block of flats with a communal area, the cost of maintaining that communal area is covered by a service charge because it is available to all residents as a communal service and it is outside the demise of your property.
As a leaseholder, you will be invoiced for ground rent, services to the block or estate, responsive repairs, maintenance; a management fee and buildings insurance.
As a freeholder, you will be invoiced for services to the estate including routine estate repairs,
maintenance and a management fee.
For more information about service charges view the information guide: Service Charges Explained.