Finding Property
What are service charges?
Last reviewed: 3 October 2026
The brief answer
Service charges are payments that leaseholders make towards maintaining, insuring and managing shared parts of a building. They can go up and down from year to year.
In plain English
Typical items include buildings insurance, cleaning, lighting of shared areas, lifts, gardens, management fees and a reserve fund for future repairs.
Large repairs, such as a new roof, can lead to significant extra charges. Ask whether major works are planned and how much is in the reserve fund.
Some freehold homes on newer estates also pay an estate management charge for shared roads or green spaces. Ask about this too.
Why it matters
Service charges are a regular cost on top of your mortgage, and lenders may take them into account when assessing affordability.
What to do next
- 1Request the last few years' service-charge accounts.
- 2Ask about planned works and the reserve fund.
- 3Include the charge in your monthly budget.
Checklist
- Current annual charge
- What it covers
- History of increases
- Reserve fund
- Planned works