Service Charges and other expenses
Today, we're going to talk about Service Charges and other expenses that are likely to apply to any leasehold property you buy or rent.
If you pay a Service Charge, your lease will be set out explaining how this is organised and what can be charged.
You have the right to ask for a summary outlining how the charge has been calculated and what it will be spent on together with any receipts or paperwork.
You are entitled to this information from your Landlord.
You do not have to pay Ground Rent unless your Landlord has sent you a written demand for it. They can take legal action if you don’t pay after you have received this demand.
Beware, your Landlord can recover unpaid ground rent going back six years and can also ask for the whole amount in one go.
The ground rent can only be increased if you agree to the increase or the lease says that this can happen.
Building and Contents Insurance
As a tenant, you are responsible for the Contents Insurance.
The Landlord will usually be responsible for the Building Insurance which will be part of your service charge. You do have the right to ask for a summary of the insurance policy.
Reserve or Sinking Fund
Most properties have a fund to cover unexpected repairs or maintenance – replacing the roof for example. This is called the Reserve Fund or Sinking Fund.
If a tenant moves, the monies stay in the fund and are non-refundable.
BW Residential Ltd
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