All owners, whether they be leaseholders or freeholders must pay the Service Charge demanded to cover the cost of communal work for the development as stipulated on your individual lease and title deed. This is for the upkeep and maintenance of any blocks on the development, and its communal areas.
Your Service Charge bill is split into two sections. The first part is an anticipated yearly budget based on last year’s expenditure for your particular site. The second part, commonly known as the reserve or contingency fund, is a collection of money for future large scale works such as interior and exterior redecorations, landscaping issues, security issues and/or roof repairs, as sometimes money has to be collected and accumulated before certain works can be carried out.