Service Charges and other expenses

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.

Service Charges

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.

Ground Rent

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.

If you do have any questions about any other expenses of this type, please do get in touch here.

Best wishes,


Jamie Fisk
BW Residential Ltd

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