What does 'Service Charge' mean when buying a property?
Find out what Service Charge means when you are buying a property. 'What does Service Charge mean?' plus over 150 other property related terms and jargon in plain English
Leaseholders (those who live in a leasehold property) are usually required to pay a service charge. This goes to the freeholder or their managing agent and is to pay for the general maintenance of the entire building as well as regular expenses such as cleaning of communal areas.
Service charge payments may also include a contribution to a Sink Fund - a pot of cash to save up for major works in the future such as when a replacement roof becomes necessary.
To find out more about the ins and outs of leasehold properties pick up a copy of my ebook How to Really Buy a Property.