Understanding Service Charges and Fees

You are set on your new residence, after what has probably been a very long and tiring road of trying to find the right fit. While this should ideally mean you can finally sit back, enjoy your favourite drink maybe while fine tuning the inside of your new home to your taste, and relax for years to come, this ideal image is not the realistic one.



This is one of the main reasons why people look for the right leasehold advice and the earlier you prepare for it, the better chance you have at actually relaxing in your new home.



Before you sign your contract, renew your existing one, or simply the more you stay in your leasehold home, there are always little nuances that need to be taken care of.

One main detail of those is service charges.

What are services and who is responsible for them?



Before you skip ahead to the service charges, let us see what is considered a service under leasehold contracts.

Any repair, maintenance, up keep, remodeling, or upgrading of the sort is a service. Now, if you are carrying on one of those tasks within the walls of your property that has no affect on the exterior, other leaseholders, or common grounds, then it is your responsibility.



By analogy, anything that is of common use or ground, structural, or literally just outside your door or window, is the responsibility of the freeholder.

Responsibility means payment, right?



No. This is where some leasehold advice is called for.



As an example; the responsibility of structural maintenance, exterior up keep and repainting, fixing a plumbing or electrical in a property that affects common areas or another property, or simply general cleaning of common grounds, are the responsibility of the freeholder to carry it out and execute it but, it is fully paid for by the leaseholder.