Service charges are often the single biggest source of tension between leaseholders and those who manage their building. For leaseholders, it can feel like they’re paying too much for too little. For directors or managing agents, it’s about keeping the block running while following the lease. For leaseholder, the good news is that UK law gives leaseholders the right to challenge service charges they think are unfair. And when disagreements can’t be sorted out informally, the First-tier Tribunal (Property Chamber) is there to step in. In this blog, we’ll explain what can be disputed, how challenges work, and how the Tribunal approaches these cases in practice.
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If you’ve ever compared service charges between different types of flats, you might have noticed something: new build developments usually cost more to run than older converted properties. At first glance, that can feel surprising. You might think: ‘Surely a shiny new building should be cheaper than an old Victorian conversion?’ But the reality is that modern buildings often come with far more equipment, safety systems, and maintenance needs. In this blog, we’ll break down why service charges differ, what leaseholders need to know, and how to judge whether charges are reasonable for your block.
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Buying a flat is exciting – but it also means buying into a share of the costs of running the building. That’s where the service charge accounts come in. They tell you whether the block is financially healthy or whether you might face nasty surprises. At first glance, these accounts can look a bit dry and technical. But hidden inside are clues about cashflow, arrears, reserves, and future risks. In this blog, we’ll explain how to read service charge accounts like a pro, and what red flags to watch out for before you sign on the dotted line.
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If you own a flat on a leasehold basis, you’ll know that service charges are part of life. They pay for the running of the building – from insurance and cleaning to repairs and long-term maintenance. But here’s the thing: everything about service charges comes back to one key document – your lease. It sets out what can be charged, when payments are due, and how accounts must be presented. In this blog, we’ll look at how to understand service charges through your lease, and share some tips on how to read it without feeling lost in legal jargon.
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If you’re a leaseholder, paying the service charge by standing order might sound like a good idea. Set it up once, let it tick along each month, and forget about it. Easy, right? Not quite.
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If you live in a block of flats, you’ll know that service charges are one of the biggest costs leaseholders face. For many people, paying a large bill in one go can feel daunting, especially with rising costs everywhere. It’s no surprise that leaseholders often ask if they can pay in monthly instalments rather than one lump sum. But what happens if the lease doesn’t allow for it? Can a Residents’ Management Company (ManCo) agree anyway, and what are the risks of doing so? In this blog, we’ll look at the issue from both sides – leaseholders wanting flexibility and directors needing to follow the rules.
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When you live in a block of flats, buildings insurance is one of the biggest costs covered by the service charge. It’s there to protect the block if something goes badly wrong – a fire, a flood, or major structural damage. But here’s the catch: if the building is under-insured, the whole block could be at risk, or in reality the people holding the responsibility to place the insurance are at risk. That’s because of something called the principle of averaging. In this blog, we’ll explain what under-insurance really means, how averaging works, and why getting the insurance figure right is so important for both leaseholders and management companies.
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If you live in a block of flats or help run one as a director, you’ll know that service charges often feel like a never-ending balancing act. One of the best tools to keep things under control is to put together and track a PPM (Planned Preventative Maintenance) diary. This might sound a bit technical, but in simple terms it’s just a diary or schedule that lists all the regular checks, servicing, and maintenance tasks for the building, so that you can check things get done on time. Some of the PPM checks are statutory, e.g., independent insurance engineering inspections of the lifts, or servicing the fire alarm. And here’s the key point: your service charges and your PPM diary are completely linked. In this blog, we’ll explain why, and how using a PPM diary can make service charges fairer, more predictable, and less stressful.
If you’re a director of a Residents’ Management Company (ManCo), one of your biggest jobs each year is setting the service charge that you want to collect, AKA the service charge budget. It might sound straightforward – add up the bills and divide them between the flats – but in reality, it’s rarely that simple. You’ve got to balance legal duties, practical needs, and the expectations of your neighbours, all while keeping the block running smoothly. In this blog, we’ll look at what ManCo directors need to know about service charges, with tips to make the job less stressful and more transparent.
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Service charge arrears are one of the biggest headaches for directors of a Residents’ Management Company (ManCo). Without 100% of the service charges being collected, the block will simply not have sufficient cash in the bank to function – insurance, cleaning, and repairs all depend on that money coming in. So, when leaseholders don’t pay, the ManCo has to act. Many ManCo directors do not think of themselves as custodians of a business, cash flow, accounts, budgeting, corporate governance and all that running a company entails. But here’s where it gets tricky: does a Residents’ ManCo go down the forfeiture route, (forfeiture means section 146 procedures to take back a flat), or, do they head to the county court for a money judgment? The answer lies in understanding the legal powers of a Residents’ ManCo – and the fact that, unlike a freeholder, it doesn’t actually own the freehold. In this blog, we’ll unpack the options in plain English, look at the pros and cons, and explain what directors can realistically do.
