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How is my service charge calculated?

The landlord should follow the lease terms when charging you service charges. The service charges will usually be split between leaseholders in a property.

The lease may provide that the amount you pay will vary but a few  leases provide for a fixed service charge and it outlines what your share of service charges should be.

This could be described in the lease as a fixed percentage or proportion of the total costs of repair, maintenance, management and insurance of the building.

Sometimes the lease may provide that the you have to pay a fair, a proper, due or reasonable amount of costs incurred by the landlord. Such clause often provides that the landlord’s surveyor should determine what this proportion should be. You can in this case, if you don’t agree with the apportionment as determined by the landlord or their surveyor, make an application to the Tribunal and challenge the apportionment for not being reasonable.


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