Service Charges

What are service charges?

Service charges are your share of the cost of managing, maintaining, repairing, insuring and providing service to the block or estate in which you live.


What is included within the service charges?

Service charges include items such as: cleaning, concierge, ground and maintenance, repair and maintenance works, building insurance, pest control, heating , hot water (when supplied by the council), management costs and any other running costs to your block or estate.


The service you receive can vary according to where you live and the type of property you own. For example, if you live in a tower block with a lift on a estate, you receive more services than if you lived in a flat in a street property or low-rise block without a lift. The services you receive are shown on the service charge estimate.


How are service charges calculated?

The method for charging service charges is set out in your lease or transfer document. Depending on the work or service provided, the cost is shared across the building or estate (if applicable) based on the rateable value (RV) of your property compared to the rateable value of all flats benefiting from the service or work.



For example where:


X= block cost of service, Y= estate cost of service


BRV= block rateable value, EVR = estate rateable value, PRV = property rateable value


For block service charge the calculation is:


X/ BRV * PRV= your contribution


£500 / 350 * 140 = £200


For estate service charge the calculation is:


Y/ ERV * PRV = your contribution (only applicable to properties on a estate)


£3000/ 6225* 140= £67.47

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