The last couple of years have seen our flat (we are leaseholders) service charge rise significantly.

We bought 3.5 years ago when the charge for previous couple of years was around £1k a year roughly, I may be out would need to double check.

We are now paying close to £2k pa. That's a significant rise in anyone's budget.

Curious to get some comparisons of service charges for flats in Sheffield to see how close our service charge is to others in Sheffield.

Also, is there an independent body that can review service charges to decide if the charge is fair/reasonable and if we are actually getting value for the (significant amount of) money?

It might be possible to challenge it with the Leasehold Valuation Tribunal.
But don't take my word for it, the leasehold advisory service are the people to ask:
http://www.lease-advice.org/

I suspect that before it gets to that stage, you could simply ask the management company what the charges are for and why they've been increased.

Vince

Before you can compare service charges..... some information is required:

Is it a modern purpose build or an old building converted
How many flats in complex......how many floors....does it have lifts...

All the above play a major factor in the building insurance cover levied on the building service charge in addition to the basics of lighting / cleaning/repairs etc of common areas.

Thanks for the input guys. I think my gripe is the size of the increases in the charge and how quickly they went up.

Ours also seems to go up a lot this year, don't know if this is common or we live in the same development! It's frustrating but there doesn't seem to be much we can do, the worst thing is when you see them on site doing totally unnecessary things!

Ours also seems to go up a lot this year, don't know if this is common or we live in the same development! It's frustrating but there doesn't seem to be much we can do, the worst thing is when you see them on site doing totally unnecessary things!

It's very unlikely that the landlord will be carrying out any kind of work out that is totally unnecessary, it may only seem so. At the end of the day the landlord is running a business and as such won't want to spend money without a reason.

The price increase may be partially down to the energy costs increasing, but some may be taking advantage of this factor.

... as such won't want to spend money without a reason.
But it's not the landlords money, the people paying the service charge pay for it all. So he may well spend it on something that the residents don't feel is worthwhile.

The price increase may be partially down to the energy costs increasing, but some may be taking advantage of this factor.
Quite possibly.... tempted to add to that but that might get close to libel :hihi:

The landlord is still operating a business, if he/she can save money to make money then they will do. Once the service charges are taken it's no longer the tennents money, it's the landlords. This SHOULD be then used to manage and maintain the property.

Is it the landlord you pay the service charge to? In my block there is a tenants' company (every flat leaseholder is a shareholder) who deal with all the maintenance and the service charge stuff.

Vince

It is a company that own the block, they collect the service charge + organise repairs etc

You are entitled to see an itemised annual statement from the 'management Company' and the company should also seek tenders for any large scale jobs before putting a charge on each flat. I also understand that the management company should not be sat on a large surplus of funds just for a 'rainy' day without good reason.
The following are now printed on my service charge payment request:
Section 167 of the Commonhold & Leasehold Reform Act 2002
Landlord and Tenant Act 1987 Sec47
Service Charge & Summary of Tenants Rights and Obligations of the Commonhold and Leasehold reforms Act 2002
All the above set out your Legal rights.

The last couple of years have seen our flat (we are leaseholders) service charge rise significantly.

We bought 3.5 years ago when the charge for previous couple of years was around £1k a year roughly, I may be out would need to double check.

We are now paying close to £2k pa. That's a significant rise in anyone's budget.

Curious to get some comparisons of service charges for flats in Sheffield to see how close our service charge is to others in Sheffield.

Also, is there an independent body that can review service charges to decide if the charge is fair/reasonable and if we are actually getting value for the (significant amount of) money?

A 2k a year service charge equates to more than 28k that you could borrow to buy a house if the mortgage was over 25 years and at a rate of 5%. Your service charge is 166.66 a month and the mortgage payments would be 165.55 a month. In a lot of areas the average price between a house and a flat is probably around 30k or even less, so looking at it like that, the service charge you pay seems very expensive.

Can I ask where you live or what your flat is worth approx? I am looking to buy and would consider a flat but prefer a house so if the service charge + mortgage on a flat equalled the same as a mortgage on a house in the same area, i'd go for the house. This is the reason I am asking.

How can i get rid of the service charge?, i know people who do not pay the charge and have done it in a legal way

Service charges are there for the maintainance and upkeep of the common parts of the building. So unless you aren't going to use these then i would have thought that you would still have to pay for it.

It is a company that own the block, they collect the service charge + organise repairs etc


1. How many flats in your block and what is the name of the freeholder and managing agent ? Paying 2K for annual service charge seems high unless there are substantial repairs are needed to be carried out.

2. The service charge account money belongs to the leaseholders and every year , within 6 months from end of the 12 months period , audited accounts must be produced and available for each leaseholder.

3. Check the amount shown for annual buildings insurance cover and divide by number of flats . What is the amount per flat ?

Which development is it that you live?

Service charges are there for the maintainance and upkeep of the common parts of the building. So unless you aren't going to use these then i would have thought that you would still have to pay for it.
erm..you think??
The post isn't questioning service charges but the rate of increase and whether or not it's justified or disproportionate so I don't get your point??

wrong thread

It might be possible to challenge it with the Leasehold Valuation Tribunal.
But don't take my word for it, the leasehold advisory service are the people to ask:
http://www.lease-advice.org/

I suspect that before it gets to that stage, you could simply ask the management company what the charges are for and why they've been increased.

Vince

Fridays Property Lawyers are now offering is a Service Charge Health Check (http://www.fridaysmove.com/property_lawyers/service-charge-health-check). This involves looking at the existing Lease agreements, Service Charge agreements, 3 years of Service Charge accounts as well as other documents.