Service charges are one of the principal areas for dispute, usually due to lack of knowledge as to how service charges actually work.
Here we answer some of the frequently asked questions:
What are service charges?
Service charges are levied to recover the costs they incur in providing services to a block or estate. The way in which individual service charges are organised is set out in individual tenancy agreements. The charges cover the cost of general maintenance and repairs, insurance of the building and, where the services are provided, lifts, lighting and cleaning and maintenance of communal areas etc.
Why do I have to pay these charges and what will happen if I don’t?
You must pay service charges because it is in the terms of your lease and is legally binding. Therefore, if you do not pay, it will end in legal action being taken against you. As trustees of the service charge fund, we are also legally bound to ensure that those who should pay, pay their service charge.
How often are service charges collected?
Service charges are collected in line with covenants of your lease so can vary slightly from client to client but in every case.
I want to ask a question about service charges. Who should I contact?
We are pleased to help you obtain the right information about your service charges. This will include information about how the service charges have been calculated if there are any variances from the previous year and exactly how the money you pay has been spent.
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