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United Kingdom

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...

Service charge apportionment on early commercial lease termination: RICS Service Charges PS (1st ed.)—assistance and obligation

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Q&As

As a broad principle, obligation to observe or give due consideration to the service charge Statement rests solely with RICS members and firms regulated by RICS. Where neither the client nor its surveyors hold RICS regulation, they are under no duty to adhere to its requirements. As a practical reminder, solicitors who are not part of RICS do not have to comply with the Service Charge Statement; however, they ought to recognise that their RICS-registered clients, and/or any RICS-registered colleagues within their organisations, might still be required to comply with the Service Charge Statement...

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Paul Cole

Clyde & Co LLP

Paul is a senior associate in the real estate department at Clyde and Co. He joined the firm in 2020 having spent a number of years working at a top tier UK real estate law firm, as well as spending time working overseas in Singapore in the real estate team of one of the Big Four accountancy firms....

Web page updated on 27/05/2026

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