Jurisdiction(s):
United Kingdom
Related legal acts
Key definition
Service charge definition

What does Service charge mean? A service charge is a variable payment made by a tenant, leaseholder or other occupier to a landlord, owner or management/factoring company to recover the cost of providing, maintaining, repairing, insuring and managing common parts and shared services in a multi‑occupied building or estate (residential or commercial). It is typically budgeted annually, demanded on account, and later reconciled by a balancing charge or credit. Apportionment is usually set by the lease or title (for example, a fixed percentage, floor area, rateable value or a “fair proportion”). Demands commonly include managing agent fees and contributions to reserve/sinking funds, and...

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England: Statutory summary accompanying service charge demands—leaseholders’ rights and obligations on variable charges, consultation, accounts access, tribunal challenges, costs and forfeiture

Precedents
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  1. This summary, which briefly outlines your rights and duties regarding variable Service charges, is legally required to be sent together with any demand for service charges. If a demand reaches you without the summary, you are entitled to lawfully withhold the service charge. This summary is not a comprehensive explanation of the law and, if you are uncertain about your rights and duties, you should obtain further Independent advice.
  2. Your lease specifies that, in addition to your rent, you must also pay service charges to your Landlord. Service charges are sums due for services, repairs, Maintenance, improvements, insurance, or the landlord’s management costs, but only in cases where the expenditure has been reasonably incurred.
  3. You may apply to the First-tier Tribunal to decide whether or not you are responsible for paying service charges for services, repairs, maintenance, improvements, insurance or management. You may make an application before or after you have paid the service charge...
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Web page updated on 22/05/2026

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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

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